Aaron WhybrowGeneral Manager, Strategic Mortgage Broker

Does income trump all? https://www.youtube.com/watch?v=5KVml1PE8-I #bagpipingmortgagebroker

Name: Does income trump all? https://www.youtube.com/watch?v=5KVml1PE8-I #bagpipingmortgagebroker
Uploaded: 2023-05-05T23:13:23Z
Channel: Aaron Whybrow
Description: A brief dialogue (May 2023) about how income, deposits, and equity influence borrowing capacity for property lending. Speakers discuss that lenders…

5 May 2023

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A brief dialogue (May 2023) about how income, deposits, and equity influence borrowing capacity for property lending. Speakers discuss that lenders primarily consider verifiable income, debt and rental income when assessing how much someone can borrow, while also requiring deposits or available equity—since future capital growth/speculation cannot be relied upon when lending.

Income seems to be this like magical thing that when it comes to lending is that if we can increase our income, borrowing can go up. So from your perspective, is that the thing that gets someone through lending?
Yep. One other thing, Deposits. Income deposits have to come into it and the deposit could be equity. We've explained that. So does income trample the biggest percentage? Like if, if you looked 100% and you're looking at lending like 70, 80% of it is income on the table. We can't plug in capital growth, we can't plug in speculations in the future, crystal ball stuff. We can only plug in income and debt and rental income. So that, that's a really interesting play if you think about what type of properties you're buying. So income going, if it can increase or have variations in your employment or your business to be able to grow, you've got to have that to keep playing the game. But conversely, you have to have either available equity at the costs you wish to take on or have cash deposits. Because we can't really lend 100% when we are going forward into property.