sunrise david koch this morning dug in, page-71

Again, I have to disrespectfully disagree with both KC and Sector lead. I work for a bank and can confirm they do utilise 100% of rental income. This is subject to property location and certain other factors.

As for KC saying banks utilise the actual interest rate for servicing when loans are with other providers, this is also incorrect. We utilise benchmark interest rates for all servicing calculations and not the actual interest rate being paid. There is more then one way to work out what the "benchmark" interest rate is and this does depend on loan type and current rate being paid.

By reading your posts KC I suspect you are a broker that deals primarily in the retail sector?

Acorn,

When assessing whether you are treated under the consumer "retail banking" guidelines or the "commercial banking" property investor guidelines we look at a number of factors, some of which include:
- Amount of exposure $
- Number of properties
- Nature of Business and income activities i.e. are there other external business/salary activities or is all income from properties
- Borrowing entities i.e. - have you set up a Special Purpose Vehicle to acquire and run your property portfolio?
- Security provided = Are there personal guarantee's, commercial guarantees and GSA's etc in place