Servicing Calculator

Discussion in 'Loans & Mortgage Brokers' started by Omi, 14th Aug, 2018.

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  1. Omi

    Omi Member

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    Hi All,

    I was just wondering if anyone can refer me to a reverse servicing calculator. I was told by nab that I was on the maximum servicing for my loan.

    I am already planning for my next IP and I wanted to know the amount I need to get in my next jobs salary to meet the servicing.

    I have made my own based on NABs assumptions during the process, however, I wanted to refer to another to get it more accurate.
     
  2. tobe

    tobe Well-Known Member

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  3. Omi

    Omi Member

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    I have had a **** broker in the past.
    I never knew that they could sit down and plan for the whats next. Anyone have any recommendations?
     
  4. euro73

    euro73 Well-Known Member Business Member

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    I recommend you contact one of the brokers on the forum. :)

    You are not going to know how to use the multitude of different servicing calcs out there...

    You are Melbourne based so if you want face to face - contact someone located in Melbourne, such as ...... @tobe ( above)
     
  5. Eric Wu

    Eric Wu Well-Known Member Business Member

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    bank policies vary significantly, even if you can pass the serving on paper, does not mean banks can accept it.

    like the others have said, find a broker on the forum and let he/her run through the numbers and draft a plan for you.
     
  6. Big Daddy

    Big Daddy Well-Known Member

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    Does anyone have the link to one of the posts in this forum that showed the order that debt should be paid off? i,e Which debt makes the greatest impact on serviceability?

    It may have been
    1)HECS /Uni loans
    2)Credit Card
    3)Personal Loans - Unsecured
    4)Car Loans
    5)Line of Credit
    6)Margin Loans / Loans for shares
    7)Home Loans
     
  7. ShireBoy

    ShireBoy Well-Known Member

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    Big Daddy likes this.
  8. womble66

    womble66 Well-Known Member

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    There will be theads on the issue but if it was me it would be in this order: 2,4,3,7,5,6,1
     
  9. Beelzebub

    Beelzebub Well-Known Member

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    I think with no.1 it depends on the size of the HECS. If there's not much left it could be worth getting rid of it to improve serviceability. If it's a big debt then maybe not as it's the cheapest form of debt you're ever likely to have. Mine's huge, so it won't be paid off anytime soon.
     
  10. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    not in the context of increasing serviicng though

    HECS repayment is based on gross income, not the amount owed and often kills an average income earners capacity to borrow

    ta

    rolf
     
  11. Lacrim

    Lacrim Well-Known Member

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    Just a hypothetical side question from a serviceability calc perspective.

    If I earned $80K in fully franked dividends (from LICs and defensive stocks) last year, will the bank count that as recurring, stable income from a serviceability standpoint, much like PAYG income?
    Or would they 'shade' /discount it, or ignore it completely as a dependable source of income?
     
  12. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    2 years of rtns and most lenders will look at it or some of it

    irony is that your side income is much more predictable than a JOB with 4 weeks notice period

    ta

    rolf
     
  13. Lacrim

    Lacrim Well-Known Member

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    Right, so its not a given until after 2 years, and possibly not all of it (the whole amount).
     
  14. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    as at today, many lenders would use 100 % or so of 2 years of rtns........... tick tock

    ta

    rolf
     
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  15. Beelzebub

    Beelzebub Well-Known Member

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    How about this one: serviceability is tight. Considering putting a deposit down on a block of land for a PPOR that is 24 months from titling. How silly is that idea?
     
  16. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Like as in the availability of finance or the concept of OTP :) ?

    if one owns the equities that produce 80 k per year, should things change with finance availability one can sell them - one exit strategy.

    Perhaps seek specific credit and market risk advice for your circumstances please.

    ta
    rolf
     
  17. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    1)HECS /Uni loans - This makes the biggest dent for high income earners with only a bit left to pay, as the payment is based on your income, and doesn't take the loan term into account.
    2)Credit Card reducing limits is an easy way to improve capacity. Makes no difference to servicing whether its fully drawn or not.
    3)Personal Loans - Unsecured Depends on lender.
    4)Car Loans Novated leases are terrible for servicing, but normal car loans are similar to unsecured loans except they're ususally a bit cheaper, so unsecured should be paid off first.
    5)Line of Credit Depends on lender
    6)Margin Loans / Loans for shares Unused limits are a killer - best to reduce if not being used.
    7)Home Loans last thing to pay off, generally speaking, other than any deductible debt.
     
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  18. Beelzebub

    Beelzebub Well-Known Member

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    In terms of finance and future regulatory changes that may result from the Royal Commission. I'm concerned that if I put the deposit down now, with a pass for servicing, that in 24 months I may not be able to pass if the credit goal posts continue to move
     
    Tom Rivera likes this.
  19. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Without knowing the envelopes of the actual numbers it's impossible to judge .

    Speak with a good banker broker and see what it looks like today.

    If it's strong today it's not going to disappoint overnight


    Ta
    Rolf
     
  20. dabbler

    dabbler Well-Known Member

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    I love it when people ask this question when the reply above contains a bold exclamtion to being a broker with every contact detail possible, but too be fair, Tobe does not indicate he is a broker & now I wonder why ?