Browse Forums Home Finance Re: Paying rent affecting borrowing capacity to build? WTF 2Feb 04, 2014 3:41 pm http://camdenbuild.blogspot.com.au/ by invite only please pm me Re: Paying rent affecting borrowing capacity to build? WTF 7Feb 20, 2014 11:08 pm joh040 Hi ppl, Currently have a land mortgage with one of the big 4, have just attempted to apply for construction loan and they inform me that because we pay $360 a week rent it ABSOLUTELY destroys our borrowing capacity. Me being ni eve just assumed bank would take into account this would be short term, i was very wrong. Help anyone, don't want to live at parents homes with two children P.S. Annual income is over $100k a year before tax, only debt we have is a personal loan @ $15k, we would want to borrow $270k to build and currently have block $130k Speak to someone else in the bank or a broker. if it's an Owners occupied build the bank won't take in consideration the rent that your buying that's just stupid... Numbers you given looks fine...a bit tight but if the P/L is the only liabilities than overall serviceability is ok for the amount your after. Michael Chan | Australia wide Mortgage Broker Michael@ShapeHomeLoans.com.au | 1300 74 5626 | Fax: 02 8212 8909 http://www.ShapeHomeLoans.com.au DIY, Home Maintenance & Repair This is a very challenging situation, made much harder by not being on site. Firstly, I think that I originally… 10 7140 Thank you so much everyone. This all makes a lot of sense. I guess when you talk to a builder who butters up everything to look very polished, you get to start believing… 8 2218 thank you! do we need to get this or our builder before we commence new build on the block? 2 4418 |