I am currently searching at the moment for the best home loan I can find but need a little help. I have $6000 saved up and earn a good salary with no dept and I own my own car. I dont have any particular property in mind at the moment I just want to know want my limit is. I spoke to one mortgage broker and they said I should save another $10,000 then get back to them. I must quailify for something though.
Thanks
AndrewYou qualify for Mortgate Insurance on a very cheap home. The bank in this instance may want you to show a solid history of saving money.
You can borrow up to 95% of a home’s value using Mortgage Insurance which only protects the bank not yourself. Some institutions accept FHOG as part of the deposit, do go into a situation like that aware though.
To see what you can actually borrow most banks have a fairly generic calculator on their site which could show you how much you can borrow. Do note this is generic and doesn’t take into account your specific saving history or anything like that.
Example:
http://www.anz.com.au/aus/homeloans/productinfohome/default.asp
Near the bottom you will have the ‘How much can I borrow’ option in the ‘Help me Calculate’ section.
If for example you wanted to take out a loan for 25 years, are single, own 1 medium sized motor vehicle, have a gross annual income of $40,000, Car plus living expenses totalling $1100 per month and no other loans but a credit card limit of $4,000 then in this case you could borrow about $140,000.
Note this isn’t done on the amount of deposit saved but more on your ability to pay the loan off once you get it (income – expenses). The deposit controls whether you pay Mortgate Insurance (though if small like $6,000 then it will certainly control the amount you can borrow).
Hope that helps.
PS Other online calculators can also be found on the ninemsn site (Money component) and most other bank or lender sites.
Good advice. ANZ will allow you to add the LMI to the loan as well. So with $6000 a $120 000 purchase is possible. You will need to cover the purchase costs as well.
If buying a home then the FHOG will come in hadny for these.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Thanks for the info that should help me out a bit more. One more thing, has anyone ever taken out a small personal loan to get them over the line? How do banks look at that? I have a good savings history with ING.
Cheers
They wouldn’t allow that. Its generally like using one credit card to pay another. There is another thread in another area (possibly in the Held Needed or General sections) discussing Guarantors and parental help.
I would advise that if you are looking to show a deposit on a loan that you get the money via that way with a definite resolution to pay them back.
Do the calculations yourself and leave yourself a large buffer as after the initial costs of moving in the house you then have rates and a multitude of other expenses that you may have not already factored in. I would also suggest looking at a good offset type mortgage, for your first homeloan don’t even consider LOC (line of credit) which ING seem to like pushing about the last year or two.
Consider how quickly you can resonably pay off the loan. Sure it may have 20-30 years on the loan for the life but you spend the last 10-20 years paying off the interest accrued. If you are going to invest in IPs later then possibly someone here could give him an idea in how to go about properly utilising his PPOR for equity in IP investment, I’m only good with the figures
.Banks do allow your to borrow the deposit in some circumstances. But you will need a good income as you would have to show you can service the repayments on both loans, and personal loans are at high rates over short periods, so the repayments can be very high.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
GE finance or AGC.
just remeber it will show on your credit rating.
Depending on how imaginitive you are will depend on how you can explain it.
The answer to your question is yes i have done this quite often to get me thru settlement.
and yes i am imaginitive to a certain extent.
aluminatiHi Andrew
What about getting Finance Approval first subject to confirmation of deposit (need a lender here who will accept deposit from anywhere) , then get the personal loan?
Just a thought………..
Or you could use a non-conforming lender such as Liberty or Bluestone. We do deals through them sometimes but the int rates are pretty steep.
By the way we’ve got 100% finance coming out at 7.2% int rate in a couple of months. Not ready yet to help you though, sorry.
Best to contact one of the brokers on the forum, save you the time of going through every bank’s servicibility calculator on their websites, and who wants to deal with them anyway?
Good luck!
Brendon
Acute Mortgage Reductions
‘Better Finance for More Homes Sooner’
http://www.acutemr.com.au
[email protected]Perhaps your partner/family could get the personal loan and you borrow the money. Of course you pay them back.
Rgds.
Lucifer_auOr you could look at buying a house with vendor finance, with the intention of refinancing on to a bank as soon as you can.
Keep smiling
Felicity
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