Will my overtime increase borrowing capacity?

Discussion in 'Loans & Mortgage Brokers' started by Omi San, 7th Feb, 2020.

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  1. Omi San

    Omi San New Member

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    Adelaide
    Hi all, first time poster here with what is hopefully a simple question.

    In the past few years my partner and I have purchased two properties with BankSA (Westpac) and my overtime (weekend penalty shifts) has been largely ignored when determining borrowing capacity. I'm now investigating the possibility of a second IP and was wondering if smaller lenders (obtained via a mortgage broker) might take this income into account?

    I have an opportunity to 'roster' myself onto weekend shifts for the coming 12 months but as we have a toddler I don't want to sacrifice all that time without a substantial payoff. The new property is at least 8 months away so it feels a little early to engage a broker. Cheers.
     
    Lindsay_W likes this.
  2. Lindsay_W

    Lindsay_W Well-Known Member

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    QLD
    Yes it's possible, some lenders will consider overtime if it's shown to be consistent
     
    Terry_w likes this.
  3. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Definitely helps. Many lenders will use 80% of the income.

    The challenge with variable income is it can be difficult to prove. If an application works without using it, we don't worry about it.
     
  4. Omi San

    Omi San New Member

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    Adelaide
    Appreciate the replies. Cheers.
     
  5. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    an important side q.

    Without that OT, can your family personally afford the IP ?

    Dumb question, but just because a lender will lend the $ and a bankers compliance show the lending as "not unsuitable" doesnt always make it so

    ta
    rolf
     
  6. Omi San

    Omi San New Member

    Joined:
    12th Aug, 2019
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    Location:
    Adelaide
    Hi Rolf

    Yeah, we should be fine. Although we are low income my partner has a self employment income that we never factor in because of the messing around, and I have family that would jump in to help if need be. Also we'll likely purchase a high yield 70's unit in suburban Adelaide, aiming for $190K @ $250 week rent, that really shouldn't have us digging into our pockets much. And we're great savers.
     
    Rolf Latham likes this.