My understanding of DSL calculations is as follows. Think it was derived from Peter Kinch's book. Do banks still use this formula for loan approval, or has it changed/
House 1 Mortgage $750 rent $1200
House 2 Mortgage $750 rent $1500
House 3 Mortgage $1200 rent $1800
House 4 Mortgage $1200 rent $1700
Total Income $6200
Total Debt $3900
70% TMRI Total Income x 0.7 or $6200 x 0.7= $440
Investment income $440 x 12 = $5280
Personal Salary $50,000
Investment Income $5280
Total income $55,280 x 40% used in Annual DSL calculations = $22,112 or $1842 per month
If my consumer debt (car payment, credit cards) = $650 per month
MY DSL is $1842-$650=$1192
In other words, I have $1192 available for new loans etc.
This still the way it is calculated?
House 1 Mortgage $750 rent $1200
House 2 Mortgage $750 rent $1500
House 3 Mortgage $1200 rent $1800
House 4 Mortgage $1200 rent $1700
Total Income $6200
Total Debt $3900
70% TMRI Total Income x 0.7 or $6200 x 0.7= $440
Investment income $440 x 12 = $5280
Personal Salary $50,000
Investment Income $5280
Total income $55,280 x 40% used in Annual DSL calculations = $22,112 or $1842 per month
If my consumer debt (car payment, credit cards) = $650 per month
MY DSL is $1842-$650=$1192
In other words, I have $1192 available for new loans etc.
This still the way it is calculated?