Thx Angelin, indeed we will just do it, but we are aware that we need to plan carefully as we have never had mortgage before, and the purchase will absorb all our money, we want to make sure everything is right from the beginning.

My fiancee just went back from St George Bank, according to STG’s calculator, My fiancee and I are allowed to borrow upto $580,000. Is it about right ?

He told my fiancee as well that Stamp Duty cannot be capitalised, but can be offset against FHOG, is it right ?

It is lil bit funny that when my fiancee showed him my payslip (from a mortgage company), he suddenly disclosed very little information, he kept repeating, “I assume your fiancee know about that. ” That is lil bit rubbish. I am working in a mortgage company as an Accountant, has nothing to do with the actual mortgage lending process.

Thx for both of you. Appreciated.

I have another question, which will benefit me more, have $10,000 on the top of 15% deposit or I use the $10,000 to repay my credit card debt and lower my credit card to $5,000 (will it have more effect on my serviceability?) ?

I am lil bit worry about the serviceability opinion from lenders, I definitely can pay monthly repayment; yet lenders might think differently. They do not know what lifestyle I have. I live a very modest life, one meal out every week, bring lunch to office, cook meals for dinner, no cigarette, no alcohol whatsoever, no fancy membership, low maintenance car and have been saving at least 50% of my income every month since a year ago. Yet my combined income is not that high ($6,850 to $7,000 after tax potentially after my pay increase in June). I planned to borrow about $450K (that is based on what I checked this week). It is getting scary that 500K does not give you much choices. So if both of you can give me a picture on how much I can borrow maximum, that would be great.

Guys,

I would like to have someone to be able to clarify few things. I plan to buy the property in mid August (start looking early August).
1. When I should start to get a loan approval either through the bank directly or mortgage broker ? if through a mortgage broker, then when I should start to meet in person ?

2. As I told in my original post, I plan to buy with 15% deposit no LMI. Yet, the properties that I am interested in, the price tags are around $520K to $540K. That means I would be liable for reduced stamp duty (NSW). Can I capitalise that ?

3. Richard or Michael who can tell me, with the calculation previously, am I really maxed out already ? Can I borrow $450K ?

4. When I go to a mortgage broker or a bank or a pre approval in June or July, my money will not be 15% yet, but somewhere around 13%, but it will be 15% in August. Does it matter ?

5. I will get a payrise (90% probability) in June around $2,500 to $3,000 annually. so my annual salary will be 57,500 gross plus super. Will it help me if I go for a pre-approval only few weeks after that payrise ? Will bank calculate my salary based on my increased salary ?

Thank you, any help will be greatly appreciated.

Hi Marty, thank you for your help. I would like to ask, with 85% LVR no LMI, what interest actually they offer (Westpac and Citi) ? Is it standard variable rate or + some percentage, because of no LMI payable ?

Richard or Michael if you can help me to answer this question as well, much appreciated. I am just wondering is that privilege comes at no cost.

1. Provide the “base” income for each applicant (if your in an industry that get’s paid a lot of “allowance” “overtime” and “shift work” let me know…it will be calculated slightly differently
Applicant 1: 55,000 gross + super
Applicant 2: 45,500 gross + super

2. Are you both Full time? or is it causal, part time, contractors etc…
Both Full Time, 1 year in job. Left last job because moved interstate.

3. How much rent do you pay currently? or are you living at home?
280 per week

4. Beside standard living expense, any another luxury expense and how much- ie Gym membership, special membership ( ie boating club)?
nothing, only $120 minimum monthly Credit Card repayment

5. What financial postilion do you hold for the car? ie is it owned outright, company owners or car loan?
Car, $10,000 owned outright

7. Any another liablilty? ie Personal loan, Store card?
Credit Card, roughly $6,000 , but I can repay if I have to (will not affect my deposit)

8. Lastly what state is the property your planing on buying located?( for FHOG purpose…)
New South Wales. I am trying to narrow down my preference to Waitara area and Marsfield area. Both of us eligible, have checked before. We will occupy the property.

Post it here should be fine though. Thanks Michael and Richard.

Hi Richard, what do you think about the fact that we have only been in the current job for 1 year ?

Do you also know anything about lenders waiving LMI on 15% deposit ?

I sent you an email, please reply at your convenience.

Cheers.

Mates, currently I’m in doubt whether I should make an investment on properties or not. I don’t know the calculation of people who have portfolio with 4-5 properties already, but if say it, I actually can invest my money ( $20,000 per unit investment and can generate income net after tax 600 p/month. )

Initial cash : 20,000
Net income per month after tax : 600
per annum : 7,200
cash on cash return : 36 percent
Investment unit will depreciate on value 8 percent per annum.
No mortgage required
Certainty : 80-90 %

Can your property portfolio beat that number ? Easy, pretty much same, or difficult ?

I need someone’s opinion and suggestion.