Question
Compute the maximum loan amount using the Debt Coverage Ratio ( DCR ) method and the information given below. Purchase price $950,000 Gross rental income
Compute the maximum loan amount using the Debt Coverage Ratio (DCR) method and the information given below.
Purchase price
$950,000
Gross rental income
$75,000
Property expenses
$12,000
Amortising loan over
15
Loan interest rate
8.50%
Payment frequency
monthly
Maximum LVR
70.0%
Minimum DCR
1.5
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
