All Forum Posts by: Gonzo Moore

Thanks Shaun!  Always welcome more info.  You are dead right about not holding my breath... just focus on the next hurdle and if and how you can remove it or move on if you can't.  Curious when you say the condo needs to be approved, what do you mean by that?

Jon, I have heard the 2 years of evidence also but my loan officer said (based on conversation with the underwriter) that as long as it is filed this lender is willing to use it.  So from what I can tell it should be usable but I also know not to take anything as gospel until the papers are signed.  The condo is in litigation so the choice of lenders is limited (2 I believe) but the litigation is also what is creating a lot of leverage for me as the buyer so pros and cons there.

Stan, this makes sense, it's no surprise that lenders will evaluate the worst case scenario since they are giving someone their money.  Have to play by their rules I guess! :)

Thanks for the quick reply Jon!  I feared this was the norm but good to hear it from someone else.  The rental income is actually with leases and will be declared on my tax return so that may be why they are willing to consider it, however you raise a good point.  I should probably find a way to get the ratio down without the rental income lest I position myself for a last minute surprise.

Hi All,

Hopefully a quick question and apologies if it has been asked previously, I was unable to find the answer in my searches.

A business partner and I co-borrowed for our first investment property.  We both live there but rent out the upstairs granny flat and also the 3rd bedroom downstairs.  Anyway, I am looking to move in with my girlfriend and have found a condo that meets our short term needs (nice place to live for us) and my long term needs (highly rentable).

That was all background just to give you some context, my actual question is with regard to how the lenders are calculating my borrowing power for the new loan for the condo.  In calculating my debt, they are allocating me the full amount of the mortgage payment for the currently existing loan even though I am a co-borrower.  However, they then go and only assign half of the rental income to me from the existing property.

Is this normal?  I would have thought it's more fair to allocate half of the mortgage liability or full amounts in both mortgage and rental income not an unfair mix of both.  FYI, we have a separate set of bank accounts for the partnership so everything financially is very separate and there is history of both of us contributing equal amounts to the joint holding accounts.

Let me know if I have missed any information but curious to hear your thoughts.

Cheers,
Gonzo.