Forum Replies Created
Hi Helen,
You can fix for 3 or 5 years and arrange for interest only for the first 5 years. Splitting the loan and having a variable portion will allow you to redraw later down the track for renovations….on this portion you can arrange to pay p&i.
As for the lenders you mentioned they will only lend you the purchase price amount, not the market value. There are only a select few that will consider a favourable purchase….as mentioned in an earlier forum.
Thanks,
Bianka
Home Loan Advice Centre
The complete home loan service
m: 0420 283 804 (mobile)
e: [email protected]
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Free serviceHi Helen,
You could borrow the full 100% of market value….you would need to ensure that it is worth the extra 20K however.
Thanks, Bianka
Bianka
Home Loan Advice Centre
The complete home loan service
m: 0420 283 804 (mobile)
Vendor Finance Advice
Free serviceHi Helen,
Things you need to consider:
1) If your Mum in-law was to sell the property on the market, what would it be worth?
I’m not sure on the size of your deposit ….but here’s something to think about…You can look at setting up your loan as a favorable purchase….what this means is that some lenders will accept a purchase from a relative without a sale contract. They’ll have it valued, and will then lend up to the market value. For example if the property’s market value is 400K, then you could borrow 75% = 300K….this would eliminate the need to pay for lenders mortgage insurance and you’d only need to cover costs such as stamp duty/legal out of your pocket.
2) Your husband’s income isn’t an issue and either is yours if you've been in the same industry…you can look at low doc or full doc loan options…from what you’ve said you can service a 300K loan (that is if you don’t have any other large liabilities).
3) At 300K your repayments would be well under $500 per week….you can always consider fixing all or a large portion for piece of mind…there are great fixed rates around 7.15%
4) As you are having a baby soon, you may want to leave some cash aside to help (as a just in case)…you can always borrow a little more if need be and leave it sitting on the loan so you don’t pay any interest on it.
5) Depending on where you live, if you’re thinking about a boarder maybe you can consider a student….a friend of mine does this and it works really well
Feel free to phone or email me if you want to ask questions or looking for a broker to organise your loan.
Kind regards,B
Bianka DemetsHome Loan Advice Centre
The complete home loan service
m: 0420 283 804 (mobile)
e: [email protected]
Vendor Finance Advice
Free serviceHi Ken,
Firstly, you really need to get your finance sorted and find out exactly how much you can borrow. Then start thinking of where you want to buy and how you can maximise your return.
Don't go direct to a bank…as they can only cover their policies/products. Your lending capacity can vary greatly, depending on how you structure the loan. See a MB who can assess your situation and can think outside of the square. Moving forward, when you're looking to buy property No. 2 and beyond, you want to be able to use 100% of your rental income, which will allow you to borrow more. There's also ways you can look at eliminating the need to pay lenders mortgage insurance, should you want to buy more properties in the near term.
Kind regards,
Bianka
Bianka Demets
Home Loan Advice Centre
The complete home loan servicem: 0420 283 804 (mobile)
e: [email protected]
Vendor Finance Advice
