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What's better for servicing....

Discussion in 'Property Finance' started by Daveh, 18th Mar, 2016.

  1. Daveh

    Daveh Well-Known Member

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    annual salary at $135K + 9% super + 10% Bonus + Medical cover

    vs

    contract rates at $85 per hour ($165K per year) out of which Super is paid but only at 5%.

    thanks
    Dave
     
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  2. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    As long as the income is consistant and can be appropirately demonstrated, $165k is higher than $135k and is better for servicing purposes.

    Bonus' are difficult to demonstrate and virtually useless if it's a new job. There's no guarantee that it will be paid.

    Medical cover doesn't help servicing.

    Super amount isn't relevant as super can't be used to service loans. It does raise the question of why only 5% though?
     
  3. Daveh

    Daveh Well-Known Member

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    Only 5% to free up cash for investing in property :)
     
  4. Simon Moore

    Simon Moore Mortgage Broker - Melbourne Business Member

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    If you are contracting as a lawyer, accountant or a few other select professions being over the $150k pa mark will give you access to 90% LVR with no LMI.
     
  5. Daveh

    Daveh Well-Known Member

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    Sorry, who is Mark ?
     
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  6. Simon Moore

    Simon Moore Mortgage Broker - Melbourne Business Member

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    If you are in one of the professions having an income over $150k give you reduced LMI.
     
  7. Elives

    Elives Well-Known Member

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  8. Daveh

    Daveh Well-Known Member

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    Lol that's funny, I thought you were reffering to a person, "around the $150K mark" vs "Mark will give you access to 90%".
     
  9. Scott No Mates

    Scott No Mates Well-Known Member

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    On your mark, ready, set, GO!

    Deutsche Mark?

    Mark Spitz?

    Classic!!!
     
  10. Daveh

    Daveh Well-Known Member

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    certainly cheered my Friday up :)
     
  11. albanga

    albanga Well-Known Member

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    Hahaha gold.
    Good ol Mark on PC who can get ripper deals above any other broker.
     
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  12. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    I can confirm that ol' mate Mark has moved to work under our banner, to give everyone this ripper deal.

    ;)

    Back to original post - depends on the definition of 'contract'. If it's being paid to an ABN - you'll be shooting yourself in the foot until you have 1-2 years tax returns.
     
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  13. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Hi Simon

    now the statement is in the public space,it would be worthwhile to qualify "contractor" and time in role and documentation required.

    ta
    rolf
     
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  14. Simon Moore

    Simon Moore Mortgage Broker - Melbourne Business Member

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    Offered by multiple lenders, more eligibility criteria than just earning over $150k, talk to a broker to take examine your specific circumstances.
     
  15. Redom

    Redom Mortgage Broker Business Member

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    So long as your not paying your own tax (i.e. not treated as self employed) - 165k wins.

    You may need longer employment histories with some lenders if the contract date has just started and you've had a long break in between innings.