Hi folks,
This is my third post on these forums, and I have been very grateful for the excellent advice thus far. I have one more question I’m hoping a mortgage broker can help with.I am currently on maternity leave and my husband was made redundant from his full time position two months ago. If neither of us are working are we still able to get a loan?
Initially I thought definitely not, but there are some circumstances in our favour: My husband has picked up highly paid contracting work in the two months since he left his employment, with more work in the pipeline, I have been with the same employer for 8 years and have an iron clad job to return to, we have sufficient equity in our existing properties to support the purchase, and the property we have found is positively geared (about 9% gross rental return). We also have cash saved aside for living expenses between now and my return to work.
If you think it is possible to get a loan, I would love to chat further with a mortgage broker about our circumstances
Thanks again,
SonyaDepends on a number of things – if the LVR is at 80% then it is definitely possible but its hard to give a certain response without having all the information at hand.
If the LVR is above 80% then I would say it is extremely unlikely that you can get it across the line.
Other factors come into but LVR is the biggest one.
TheFinanceShop | Elite Property Finance
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Hi Sonia
I had two approved recently – one at 80% and another at 90% so LMI was involved. Admittedly the male applicant was in a long term PAYG role that wasn’t on a contract basis.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Maternity leave is ok, are you still on paid maternity leave? if not than we will have to rely on your husbands income which is fine but it will come down to how his “contract is set up as”
1. Contract as a PAYG still
2. Contract has a self employed via a ABN+ How long is the contract for – 3,6,12 month etc..
I have a feeling the property you found ( 9% yield) is a regional property? if so that’s fine….just need to make sure the bank will finance that area/location and property type.
But overall doable but a still some unanswered questions before a solid yes can be given :)
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
As a supporting applicant LMI territory is acceptable now, lenders are becoming more flexible in this policy area.
As your partner is contracting however, it would be more likely to be at 80% max however, stability of income for the family is important in the lenders eyes.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Got one through at 80% with NAB today with maternity leave and letter from employer stating job available at duration of leave. Other applicant was in a long term PAYG employment.
Would be necessary for husband to be in PAYG contract employment to have a chance IMO.
Would be interested to hear the outcome (and lender) if you get it through at 90%.
Would be worth considering 88% LVR plus LMI to keep it below 90% in total.
Jamie, which lender approved at 90%?
Ta.
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This reply was modified 10 years, 4 months ago by
Colin Rice.
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone MePerth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]
I have done them with Firstmac at 90% before.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Jamie, which lender approved at 90%?
Trade secret :-)
ANZ
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Cheers Jamie and Richard.
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone MePerth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]
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This reply was modified 10 years, 4 months ago by
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