NY_Resident
Registered User
- Messages
- 73
Hi all
I’m in the process of applying for a mortgage (movers). Wondering if anybody knows the answer to the questions below. I think I may be in a position where the stress test limits may impact the max loan made available; understanding this better would be helpful in deciding whether or not I should liquidate some other assets in order to fund the purchase in advance of selling my existing home:
1. I contribute the maximum possible under Revenue rules to my company’s pension plan (which is voluntary membership). If I run up against limits on the stress test, do mortgage underwriters generally make allowance for the fact that I can substantially increase net monthly income by reducing my pension contributions (I have outlined this in my application). Bank is AIB
2. AIB make allowance for approx 50% of bonus received over last 3 years in arriving at max loan amount of 3.5x salary. Do they also take this bonus income into account at the same level in the stress test?
3.Does anybody know what allowance AIB makes for stock option income in the 3.5x salary. Same treatment as bonus, or excluded?
4. I also have a mortgage on a rental property. It’s a fixed rate with about 8 years remaining. For stress test, does anybody know if AIB assumes no impact of+2% rise in rates on this repayment?
Thanks for any help!
I’m in the process of applying for a mortgage (movers). Wondering if anybody knows the answer to the questions below. I think I may be in a position where the stress test limits may impact the max loan made available; understanding this better would be helpful in deciding whether or not I should liquidate some other assets in order to fund the purchase in advance of selling my existing home:
1. I contribute the maximum possible under Revenue rules to my company’s pension plan (which is voluntary membership). If I run up against limits on the stress test, do mortgage underwriters generally make allowance for the fact that I can substantially increase net monthly income by reducing my pension contributions (I have outlined this in my application). Bank is AIB
2. AIB make allowance for approx 50% of bonus received over last 3 years in arriving at max loan amount of 3.5x salary. Do they also take this bonus income into account at the same level in the stress test?
3.Does anybody know what allowance AIB makes for stock option income in the 3.5x salary. Same treatment as bonus, or excluded?
4. I also have a mortgage on a rental property. It’s a fixed rate with about 8 years remaining. For stress test, does anybody know if AIB assumes no impact of+2% rise in rates on this repayment?
Thanks for any help!