hey guys,
my mum has been renting for 30 years and it has got her nowhere. She is a wonderful lady who has devoted her life to raising me and has received no help from anyone (my father left when i was very young and has provided no assistance ever and my Mum never received any benefits from Centerlink either). I've finally bought myself a little studio apartment and now I want to her help to do the same before it's too late.
here's some more details about my mum's situation;
1. she is 50 years old
2. she has been working at a University (in Sydney) full time for 25+years and still has that job (very stable, full-time employment)
3. her annual salary is approximately $50,000
4. she has about $10,0000 in savings (and I owe her an additional $5,000 that I'm going to try to repay her as soon as possible)
5. the apartments she is looking at are small studio apartment (under 30sqm) and priced between $150,000 – $170,000my question to the knowledgeable people on this forum are;
1. given the above situation, is it possible for my Mum to get a suitable home loan approved?
if anyone has any additional advice I would be happy to hear it too
thanks heaps guys – I look forward to your replies!
^^^
I definitely can and so can my Mum
Starfly
Nice to hear you wanting to help your mother. I think many of us forget what our parents do for us.
Only problem i think you will find is the size of the unit at 30 square metres. Most lenders will want a minimum of 40 Square Metres and the 2 main mortgage insurers will struggle.
Their are a couple of lenders who will go down to 25 SQ M but either the rate is higher or the LVR is lower.
Richard Taylor | Australia's leading private lender
Hi Stayfly. Good on you. Has your ma ever owned a house at all? If not, the first home owners grant will make the whole process easier, if not, so much money is gobbled up in stampduty. As has already been pointed out, you will have very little chance of getting a competitive loan for a property like you have mentioned. A larger unit, of 45sqm plus is a different kettle of fish, and I am guessing you will need to borrow as much of the property price as you can. Many lenders offer 100% finance for owner occupied property, and if your mum has no other committments, will likely be able to borrow up to $280,000 give or take $10k or so on her wage. Then, you will just have to pay stamp duty and mortgage insurance, which is part of life on loans that have borrowings of more than 80%. With your input and a bit of searching for a value property like this, buying right, I can see your mum in her new home too this year! All the best.
^^^^
thanks for the replies everyone. From the feedback I'm thinking my Mum will have to do something similar to what I did and that was to have a 20% deposit. She is eligible for a first home owners grant so that will help but she would still need to raise about an additional $10,000 for the deposit which may be difficult (it's taken her close to 5 years to raise the current $10,000 that she has). Well, at least we can try and do our best to raise/save the money, even if it does take a bit longer than we hoped.
thanks again for the help, one final question is does anyone have any recommendations for lenders that are willing to consider smaller apartments?
thanks
It would probably be good for her to sit down with a Mortgage Broker there are plenty in this forum and most do not charge. Often vital detail can be left out when communicating in this fashion.
I am not sure who from here is in Sydney but I know there are a couple I am in Brisbane.
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