Bendigo/Adelaide Bank Home Loan Calculations (for Qantas Deal)

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Bendigo Bank

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  Duckie2hh on 18/12/2023 - 17:13

  +3

  even with zero outstanding balance

  They assume your credit card is maxed out and then recheck if your income can repay both the credit card and the home loan. Would recommend reducing credit cards for home loan assessment.

  know they ignore money in the offset

  In my experience, they use this to as part of a secondary "human" assessment.

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  Gunnar on 18/12/2023 - 18:16

  +3

  I previously applied and got rejected ~6 months ago, which I was quite surprised about as a single person with low expenditures, I imagine it was because of having two credit cards I was churning at the time (even with zero outstanding balance).

  Don’t churn cards if you intend to apply for a home loan. What hits you is the ‘enquiry into a line of credit’. Which essentially is interpreted as ‘hey I need help’ by the assessor. You’ll hear advice to the contrary on here based on “bro show me where it says this” however this is advice I received from my broker who oversaw home loan applications for a bank prior to becoming a broker. It’s part of the ‘human assessment that banks do which is, obviously, not disclosed to you.

  Zero balance on your CC also makes no difference. The issue is how much you have as your credit limit. Loan applications aren’t assessed on what your balance is, it's assessed on potential debt. You may have a $10k credit limit with zero balance but your ability to service the loan when being assessed assumes the scenario where you have maxed out your card.

  Lending has tightened up quite a lot recently and what they have tightened up on is assessing your ability to service the loan

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  Brick50 on 18/12/2023 - 20:48

  100k qantas points is only worth $1000 on classified, whenever I have refinanced it has been for $3288 - $4000 cashback, Can I ask why it would be worth refinancing to this qantas deal?

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    juph0rry on 19/12/2023 - 09:07

    I actually use the points and fly. Also, it's every year for the life of the loan, do you refinance every year to get a cashback?

    • 

      Brick50 on 19/12/2023 - 11:20

      Yes or twice a year so far

      • 

        juph0rry on 19/12/2023 - 11:26

        You certainly have more patience than I do hah, keep doing what you're doing then. I also wouldn't be able to do that due to churning CC's for points.

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  miwahni on 18/12/2023 - 22:29

  +1

  I don't work for Bendigo but there's a rough assessment you can do for yourself.

  Take your base wage - deduct tax - work out what your net income is per annum.
  Next, work out your yearly expenses for living eg groceries, bills, insurances, fuel, school fees if applicable - basically all of your non-discretionary spending. Deduct that amount from your annual net income. The amount remaining is your disposable income (note that most banks will use their own assessment of your non discretionary expenses - if their figure is higher, they'll use that. If their figure is lower, they'll use yours.)

  The next step is to deduct the annual required repayments BASED ON LIMITS of existing credit cards, plus any other personal /car loans you may have. Not all banks use the same formula for credit cards so work it out on 5% of the limit to be safe.

  Now - use an online calculator to work out the repayments on your chosen loan but at 3% higher than the applicable rate eg if you choose a loan that's say 6.5%, work out the annual repayments at 9.5% for a year.

  So now you have net income minus living expenses minus any other repayments, minus the planned repayments on your new loan. Surplus? It could be worth applying. Deficit? Wait until rates come down / close off credit cards or reduce limits. Use cash to reduce current loan balance so you're borrowing a lower amount.

  This is a very down and dirty assessment with lots of variables re rates, living expense (HEM) and calculation of repyts but should give you an idea.

  Savings in the offset show that you don't blow all your money and can strengthen your app but the bottom line is that you need to pass the affordability calc.