Aaron WhybrowGeneral Manager, Strategic Mortgage Broker

Rental income with some lenders now at 90% vs 80% #bagpipingmortgagebroker #flexiblemortgagebroker

Name: Rental income with some lenders now at 90% vs 80% #bagpipingmortgagebroker #flexiblemortgagebroker
Uploaded: 2023-01-31T20:07:15Z
Channel: Aaron Whybrow
Description: Short YouTube video by Aaron Whybrow (self-described "bagpiping mortgage broker") describing that some banks have increased the rental-income assessment…

31 Jan 2023

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Short YouTube video by Aaron Whybrow (self-described "bagpiping mortgage broker") describing that some banks have increased the rental-income assessment from 80% to 90%, which may let borrowers count more rental income when qualifying for further property purchases. He notes banks still account for deductions (e.g., strata) and that the change may reflect lender risk tolerance and low vacancy rates.

Did you know the banks have changed some of the buffers on your rental income? Hey, it's Aaron, your bagpiping mortgage broker. Your rental income in different banks can be judged at say, 70%, 75%, 80%. And main times that we see is 80%. But did you know that a couple of the major banks have changed it from 80% to 90%? And that could be due to a whole range of factors, not including bank risk, bank tolerance, low vacancy rates, and the like. So did you know that you can actually potentially get more income on your calculator to go for your next property? They still take in account all the deductions related to strata and other factors that are related to the variability in the expense of each bank. But did you know that they are changing the capacity to repay and they've changed it from 80% to 90% with some lenders today.