using tour credit limit of $31,000- Please what ever you do …do not lower your limit at this point- Banks will suss it out.)
Thx Michael. What is the reason for that ? I actually already paid off some credit cards and closed them in last 3 weeks. Now my combined credit card limit with my fiancee is only 12,000 and debt 7,500, which I plan to pay 2,000 or 3,000 as well. I thought I will be in better place if I did that.
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.
Wow that’s great, hopefully that is not because you are a cuteyoungchic . I am actually looking for an answer for this question as well. If it is not for an IP, and you like the property, you are lil bit afraid that your offer will not even be considered. Many properties are advertised this way. Offers over $500,000, does that mean anything under will not be considered at all ?
Hi, I am interested to this topic actually. Currently I work in a mortgage company (lender- not mortgage broker), as an Accountant (working towards completion of CPA Aust). I also have responsibility as an assistant to the Fund Accountant for a boutique super fund and currently also undertake a study for Diploma of Financial Services (Financial Planning) with ASFA. Knowing that a mortgage broker can earn good amount of money and the requirements seem suit me well (of course I still have to learn a lot – 2 years ago graduated with Master degree in Accounting and 2 years work experience) is awesome.
What do you guys think I need to develop my skills more at ? I am pretty familiar with few structures e.g unit trust, discretionary trust, company and of course the taxation benefit and the accounts. Maybe I can be a mortgage broker soon Thanks Ben for asking a good question.
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.
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 ?
85% no mi with ing not possible unless main income earner is 2 years in job I think from memory. Westpac fine. Citibank should also be fine as long as property in good location ie Sydney metro.
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.
Nice to talk to you again, you are always very helpful. That house/apartment will be my first home and I would really like to take the benefit of FHOG and stamp duty concession. Maybe I am wrong, but that is what I thought that if I make that house/apartment as an IP for a while, I would not be able to get the benefit, is it correct ?
I am thinking about signing the contract whilst I am still working in Sydney. What do you think about it ? What should I say on my application ?
Yes – Have you ever renovated a house that change the structure of the building before Every Qlder i have raised and built under.
Yes the Bank will fund the renovation although depending on the numbers may want to draw cheques in favour of the registered Builder doing the structural work.
Certainly renovate if it adds value and increases rent.
Richard, may I send you an email to discuss my current situation and maybe you can give suggestion on what the best I can do at this point ? I prefer email rather than phone call as I believe I can explain everything better on email, I’m not a phone-call type of person.
and maybe your talent can also help me with my mortgage
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 ?