Ed

So I've got two, I think we call them Sophie and Matt.

Yeah, we call them Sophie and Matt.

They're both on 60 grand.

So this says that to get over the UMI or to meet the uncommitted monthly income test and pass that test,

Either Sophie would have to increase her income from $60,000 to $84,000, or Matt could do exactly the same or some combination of that, right?

So if between the two of them they could get to a $24,000 pay rise, that would pass that test.

Or if they paid off $235,000 of mortgages on their current properties.

That might be a bit of a stretch.

That's going to be a bit of a stretch, right?

And then we've also got some other stuff.

Okay.

So if she could go up to $84,000, okay, she's now passed the UMI test.

The DTI test didn't actually matter because they're looking at new builds, but let's say you changed it to looking at existing properties, the DTI would matter.

But we've still got this pesky LVR situation, right?

So they can borrow more, but it's the deposit side.

So what could they do to get that across the line?

Yeah, so mortgage reduction of 50K or increasing the value by 40K.

Okay, so we're going to put the mortgage up because they're borrowing money in order to do the renovations.

Then he's going to do it.

That's going to mean we now pass the LVR test, which is really cool.