GoFuckYourself.com - Adult Webmaster Forum - View Single Post - How To Borrow One Million Dollars On A Middle Class Income (Link)

rowan · 06-12-2006, 09:20 AM

I just loaded up my bank website, plugged in some fictional figures...

Single
$AUD 40,000 before tax income (the average AU wage)
$AUD 2,000 credit card limit
$AUD 500 monthly car repayment

The bank will lend this person $AUD300k, which means the loan repayments on an interest only loan @7% will cost $21k... more than half of their GROSS income! If it's a 30 year principal and interest loan then the repayments rise to $23k for the year.

So it ends up being like this...

$40,000 gross income
- $7,860 income tax
- $6,000 car repayments
- $23,000 home loan repayments

Guess what's left? $3140. For an entire year. Fucking crazy. How can a bank even reasonably expect this person to be able to service a loan.

06-12-2006, 09:20 AM
rowan Too lazy to set a custom title Join Date: Mar 2002 Location: Australia Posts: 17,393	I just loaded up my bank website, plugged in some fictional figures... Single $AUD 40,000 before tax income (the average AU wage) $AUD 2,000 credit card limit $AUD 500 monthly car repayment The bank will lend this person $AUD300k, which means the loan repayments on an interest only loan @7% will cost $21k... more than half of their GROSS income! If it's a 30 year principal and interest loan then the repayments rise to $23k for the year. So it ends up being like this... $40,000 gross income - $7,860 income tax - $6,000 car repayments - $23,000 home loan repayments Guess what's left? $3140. For an entire year. Fucking crazy. How can a bank even reasonably expect this person to be able to service a loan.