What's better for servicing....

Discussion in 'Loans & Mortgage Brokers' started by Hodgo, 18th Mar, 2016.

Join Australia's most dynamic and respected property investment community
Tags:
  1. Hodgo

    Hodgo Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    218
    Location:
    Baldivis, WA
    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
     
    Hodgo, 18th Mar, 2016
    #1
    Frazz likes this.
  2. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    8,171
    Location:
    03 9877 3000
    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?
     
    Peter_Tersteeg, 18th Mar, 2016
    #2
  3. Hodgo

    Hodgo Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    218
    Location:
    Baldivis, WA
    Only 5% to free up cash for investing in property :)
     
    Hodgo, 18th Mar, 2016
    #3
  4. Simon Moore

    Simon Moore Residential & Commercial Mortgage Broker Business Member

    Joined:
    4th Mar, 2016
    Posts:
    556
    Location:
    Level 2 287 Collins St Melbourne VIC 3000
    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.
     
    Simon Moore, 18th Mar, 2016
    #4
  5. Hodgo

    Hodgo Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    218
    Location:
    Baldivis, WA
    Sorry, who is Mark ?
     
    Hodgo, 18th Mar, 2016
    #5
    JameZ likes this.
  6. Simon Moore

    Simon Moore Residential & Commercial Mortgage Broker Business Member

    Joined:
    4th Mar, 2016
    Posts:
    556
    Location:
    Level 2 287 Collins St Melbourne VIC 3000
    If you are in one of the professions having an income over $150k give you reduced LMI.
     
    Simon Moore, 18th Mar, 2016
    #6
  7. Elives

    Elives Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    988
    Location:
    Queensland
    lol
     
    Elives, 18th Mar, 2016
    #7
  8. Hodgo

    Hodgo Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    218
    Location:
    Baldivis, WA
    Lol that's funny, I thought you were reffering to a person, "around the $150K mark" vs "Mark will give you access to 90%".
     
    Hodgo, 18th Mar, 2016
    #8
  9. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    27,250
    Location:
    Sydney or NSW or Australia
    On your mark, ready, set, GO!

    Deutsche Mark?

    Mark Spitz?

    Classic!!!
     
    Scott No Mates, 18th Mar, 2016
    #9
  10. Hodgo

    Hodgo Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    218
    Location:
    Baldivis, WA
    certainly cheered my Friday up :)
     
    Hodgo, 18th Mar, 2016
    #10
  11. albanga

    albanga Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    2,701
    Location:
    Melbourne
    Hahaha gold.
    Good ol Mark on PC who can get ripper deals above any other broker.
     
    albanga, 18th Mar, 2016
    #11
    Frazz likes this.
  12. Corey Batt

    Corey Batt Well-Known Member

    Joined:
    14th Jun, 2015
    Posts:
    2,091
    Location:
    Adelaide, SA
    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.
     
    Corey Batt, 18th Mar, 2016
    #12
    Jess Peletier likes this.
  13. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,653
    Location:
    Gold Coast (Australia Wide)
    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
     
    Rolf Latham, 18th Mar, 2016
    #13
    Corey Batt likes this.
  14. Simon Moore

    Simon Moore Residential & Commercial Mortgage Broker Business Member

    Joined:
    4th Mar, 2016
    Posts:
    556
    Location:
    Level 2 287 Collins St Melbourne VIC 3000
    Offered by multiple lenders, more eligibility criteria than just earning over $150k, talk to a broker to take examine your specific circumstances.
     
    Simon Moore, 18th Mar, 2016
    #14
  15. Redom

    Redom Mortgage Broker Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    4,658
    Location:
    Sydney (Australia Wide)
    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.
     
    Redom, 20th Mar, 2016
    #15