Heyas,
My brother and I have been looking heavily into going in together to buy a house to live in. Due to our lifestyle we don’t have much savings but a fair amount of assests so we were planning on going into a no deposit loan. we pass the criteria and can be approved for up to $400k ( don’t want to spend over $300 though). The problem is though we were advised that siblings can’t apply for no deposit loans. I was wondering if any of you know if this is the case and also any other options that might be available? We have been living together for the last 4 years and share income. Any help would be greatly appreciated!
There is not enough info for any decent advice here.
I suggest you get a good broker onside. Where are you located?
All the best,
Simon Macks
Residential and Commercial Finance Broker[email protected]
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.
I agree with Simon more information is required to offer clear and consise advice but i assure you have done several over the last couple of months for brothers and sisters buying together.
Cheers Richard
Ph: (07) 3720 1888
[email protected]
http://www.yourstatefinance.comIP funding and US property finance
our specialityRichard Taylor | Australia's leading private lender
sorry about that…was pretty much just fishing to find out if it is possible to start off with.
I’m not too sure the of what info is required but ill give it a go.
I am 24. Have been working for 8 months after 6 years of uni ( Bach of Microelectronic Engineering / Bach of Info Tech ). I am working as a software engineer in a very stable role ( I am a vital part of the company, have recieved a pay rise). I earn $48k. Take home pay $2600/m. The only loan I am paying off is a car at $489 a month. I have a GE store card (not credit) with a limit of $2400.
My brother is 22. Has also been working for 8 months after 4 years uni (Bach of Commerce) as a Paraplanner for a reputable Brisbane Financial Planning firm. He is on $40k and also in a stable position. Take home pay is $2350/m. He has a credit limit of $5000.
Personal assets excluding the car come to a little over $25000. The car is valued at $21k
We have a satisfactory rental history (no breaches), and a clean credit rating.
The house we are interested in is asking for $312k. We live in Brisbane
I hope this helps. Anything else just yell out and ill get back to you asap. Thanks!!
You should give Richard a call and see what he can suggest.
Cheers,
Simon Macks
Residential and Commercial Finance Broker[email protected]
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.
No problems with siblings, There is a swag of these 100% products on the market at the moment including 105% etc,
No deposit, no deposit with no gen savings, no deposit with paid defaults, no deposit with fries & coke etc etc.Watch out for break costs and the LMI (mortgage insurance) as this will vary greatly between lenders and in some cases between a lenders particular product suite,
Insure your Broker is not wet behind the ears and has access and knowledge of all these products or you will pay dearly.Here’s a tip, you mentioned a personal loan, some lenders may attribute the repayments on this as a form of savings/budgeting, and this may put you in the ballpark for a 100% gen savings loan with lower LMI and rates.
Also, remember your closing costs need to be accounted for, i.e. stamp duty legals LMI app fees etc, there are 106% etc loans available to cover this, but if you are entitled to the FHOG then this may cover the short fall on a 100% loan, I hope this helps. Cheers.
Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Think long and hard before going into a deal with a sibbling, especially at your age. I guarantee that one of you will want to sell the property within 5 years. At ages 22 and 24, 5 years is going to see massive changes in your life circumstances for both of you.
One option to consider is to spend 2+ years saving up your own deposit, then buy a slightly cheaper place in your own right. IMHO there is no hurry to get into property ownership now after the huge upswing we’ve had.
Following on from Shakes comments, you also need to consider the effect this will have on your individual future lending/borrowing capacity, e.g. you will be assessed as servicing 100% of the loan you have with your brother and visa versa, cheers.
Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
hi Eaglerocker
My view maybe different and its your call.
I would do a investment with siblings and I would pay it off as it goes and then I would brag out any equity if and when is required for the next investment.
Not sure about your family but mine.
I use the cash out of equity to fuel my investments and my extended families investments and as long as the ground rules are agreed from the start and are written down( very important) then they work.
Banks just love multiple cross claiments so you wouldn’t have any problem with lenders and if you do.
Post broker wanted and put your city and let them find the loan.
I’m a licenced broker and I use brokers to organise some of my lends as it is easier to get thru there lending institutions.
Its for time and effort.
Don’t email me as I don’t broker to external clients.here to help
thanks for the help guys. I’ll have a decent read in the morning when I am more awake!
You must be logged in to reply to this topic. If you don't have an account, you can register here.
