I have lot of clients with multiple investment properties who earn good income. They have their regular income plus the rental return and in some cases, other investment income. In the past these types of clients could purchase quite easily to increase their investment property portfolio. With the recent change in financial policies many of these clients do not have the serviceability anymore. This is because the lenders are adding a huge buffer to their existing loan repayments. For example, most lenders do not use the actual loan repayment they will only use the 25 year P&I repayment with an additional buffer. I had a recent client whose actual repayments were around $7,000 per month and the bank calculator pushed the repayment up to $13,000 a month.
How do I go the extra mile? When I see these clients we go through many different solutions. This means multiple lender calculators, speaking to the banks and spending a lot of time see how much income the lenders will use.
I have recently found a solution for a client who had been rejected when applying directly with the bank. We thought it was going to be tough but we got the loan over the line by using one of our specialist lenders.