Co-Borrower but am getting allocated full mortgage payment in debt to income ratio calculation?

[Gonzo Moore]

Hi All,

Hopefully a quick question and apologies if it has been asked previously, I was unable to find the answer in my searches.

A business partner and I co-borrowed for our first investment property.  We both live there but rent out the upstairs granny flat and also the 3rd bedroom downstairs.  Anyway, I am looking to move in with my girlfriend and have found a condo that meets our short term needs (nice place to live for us) and my long term needs (highly rentable).

That was all background just to give you some context, my actual question is with regard to how the lenders are calculating my borrowing power for the new loan for the condo.  In calculating my debt, they are allocating me the full amount of the mortgage payment for the currently existing loan even though I am a co-borrower.  However, they then go and only assign half of the rental income to me from the existing property.

Is this normal?  I would have thought it's more fair to allocate half of the mortgage liability or full amounts in both mortgage and rental income not an unfair mix of both.  FYI, we have a separate set of bank accounts for the partnership so everything financially is very separate and there is history of both of us contributing equal amounts to the joint holding accounts.

Let me know if I have missed any information but curious to hear your thoughts.

Cheers,
Gonzo.