[
]I am so sad today i have waited 3 weeks to find out that i can not get the money i am after for a loan what should i do now any suggestions would be greatly appreciated okay this is my situatuion we have a joint income of 64,000 we have 5,000 saved for property we have 79,000 equity we have a credit card that is paid every month 3,000 limit fortnight commitment for PPOR is 1,300 and we can only get a investment house that is worth 70,000 i have tried to get a loan through our current lender Aussie Home Loans but our home was not valued at what we thought it would be it fell 20,000 less buger…..what would you do now if you were me we would like to renovate our home a little anyway but should we do this with the cash or should we save in our redraw??? or maybe you think we should do something else Please help me []Need some more info to fully assess.
Why was it declined and by who? Mortgage Insurance?
What is the value of your PPOR and post code?
Do you have children, if so, how many?
You may need to go for a loan amount of 80%LVR to avoid mortgage insurance.
Only to happy to assist.
There is still many options available to you.Hi Kristine,
As per picja1 – need some more info.
Never , ever loose hope! Always remember,if at first you don’t succeed, try again – always.
On face value, it seems to me Aussie may not be taking into account any Potential income you would be earning from your investment property. I talked to a lender once that would not take rental income into account when assessing the loan?? Go figure! – I just can’t remember who it was.
Most lenders have calculators on their web sites that will help you determine your borrowing capacity, the one I use from time to time is on the Rams web site. You can use it to explore “what if” type scenarios. For example, ‘what if’ you reduced your credit card down to a $1000 limit – what would your borrowing capacity be then?
Another option you could explore – ‘what if’ you were to refinance your borrowings for your PPOR? Perhaps over an extended number of years, to lower your monthly commitments or maybe you could explore the option of I/O for your PPOR. Some lenders don’t allow this, but you could shop around or employ the services of a mortgage broker to assist. (If you are in Perth I could recommend one).
Which brings me to another point, where are you looking at purchasing & how much finance do you actually require?
Hope this helps.
Cheers
Kym[]
[]I am so sad today i have waited 3 weeks to find out that i can not get the money i am after for a loan what should i do now any suggestions would be greatly appreciated okay this is my situatuion we have a joint income of 64,000 we have 5,000 saved for property we have 79,000 equity we have a credit card that is paid every month 3,000 limit fortnight commitment for PPOR is 1,300 and we can only get a investment house that is worth 70,000 i have tried to get a loan through our current lender Aussie Home Loans but our home was not valued at what we thought it would be it fell 20,000 less buger…..what would you do now if you were me we would like to renovate our home a little anyway but should we do this with the cash or should we save in our redraw??? or maybe you think we should do something else Please help me []Hi Kristine,
(1)Three weeks is far to long to wait for pre aproval on a loan, I would sugest you try another broker,
(2)$650.00 per week in loan repayments on your PPR seems to high, what sort of loan is it?
(3)what is the purchase price of the I,P ? do you have any dependants? if so how many?Myself and a number of other brokers on this forum may be able to help you, good luck,
Regards Steve.Phone 0402483216
Mobile Mortgage
[email protected]
Phone 0402483216hi firstly thank you everyine for your help and interest i live in Diamond Creek Melbourne i have no kids only the fluffy type…maybe i am getting a little confused with my commitment to the bank maybe thats per month i willwork that one out and get back to you i tried to get a loan for a house the value of 130,000 but hopefully will use less when i use Steves techinique i am looking to buy in country Victoria or NSW…i tried to get the loan without morgage insurance way to costly otherwise i think i tried to get deposit from current lender and the rest from Bank West….hay maybe thats a idea to try and get the whole lot through my current PPOR lender and then they will take the rent into consderation..is that how it works?????the value of my house came in at 290,000 from bank and i owe 211,000 thats with 7,000 in the redraw….Ummm what else can i tell you i hink i have answered all questions…i will go ring the bank now and find out about my commitment thanks heaps Kristine
Three weeks to find out you were declined is way too long. I also tried Aussies recently and they would only offer 85% LVR which wasn’t what I was after at the time. Managed to find someone who was more than happy to lend 95% LVR (which is what I was after at the time).
I think a lot depends on whether or not the rental income is taken into consideration when assessing the application.
Don’t give up. But also don’t just sit back and wait for a broker or loans manager to do all the hard work for you. After all it is in your best interest to keep chasing things.Oooops i messed up 1,363 is our commitment per month….which we always pay more thats why i wasnt familiar with it all…yes that is great advice to true but my question is ……Is it worth paying a few thousand to change banks or wait the few months until the lender is happy to lend?????????????
I am in the finance industry and I know what its like when a broker stuffs you around. If you are interested a friend of mine deals with the slightly harder cases. His website is drmortgage.com.au check out the website and see if he can help you.[8D]
I am in the finance industry and I know what its like when a broker stuffs you around. If you are interested a friend of mine deals with the slightly harder cases. His website is drmortgage.com.au check out the website and see if he can help you.[8D]
Dear Kristine,
First of all, DOn’t Give Up. I am encountering some Mortgage problem too at the moment.
My dad and I ( both Non-australian resident ) just recently bought a land at Sanctuary Lakes for 184000 and am trying to apply for a Loan ( either a max of 70% or 80% whichever is the max without having to obtain a mortgage insurance )
Did through a mortgage consultant, she’s very helpful, tried everything and decided that ANZ was the best option, rates, flexibility and services i require etc… and just last week ANZ came back with a No
We want to obtain a construction loan as subsequently we would need the loan for building a residential ( home ) on the vacant land that we bought, but as the land is yet to be subdivided, we can’t provide the bank with the plans they require for construction loan application.
Anyway, since we’re foreigners purchasing australian interest, we are to obtain FIRB ( Foreign Investor Review Board ) approval which we’ve manage to obtain. The approval came with 3 conditions
1. to commence construction by 31st August ( 1 year after approval )
2. Cost of construction has to be more than 50% the cost of land.
3. we can’t sell the land without first having construction on it.The reason ANZ and most of the other banks decline our application is because of COndition no 3. as they find it risky for them not to be able to sell the land if something were to happen.
Tried negotiating with ANZ, no replies and they’re stuck with No. what i see is that it only takes them to give me a few months, in which after settlement, i could get someone to draw up a building plan and submit it to them for construction loan, but they just say NO. they want things in black and white, and are not able to nefotiate a deal. Very bad service i must say, with their customer support.
Anyway, since i’m studying and am not working, dad’s willing to join in the investment as he’s employed (in Malaysia) with about 20,000 AUD before tax income per month and with an asset of about 200,000 AUD. I have my own asset of about 70,000 AUD cash. Financially i wouldn’t think we would have a problem but it’s just that the bank can’t see through COndition no 3 set by the FIRB. Have called FIRB up and they’re surprised as we’re the first (as they call it) who had difficulties obtaining loan because of their conditions.
Anyway, am now trying Bank West, yet to get a reply and also trying to source out other options. If anyone could help in this forum, please please do let me know too as the settlement is around end of OCt to early Nov, so we’re a bit desperate too.
motivstorm(at)hotmail.com
But one thing is certain, i shall never give up as i’m sure there’s at least one lender out there who could help. Kristine, i think that would be the case for you too, at least you don’t have residency problems, which is a big help and something that should be appreciated and not be taken for granted [
]Let me know how it goes, and i’ll update on my situation if there’s any changes too.
cheers,
Kevin
ohhh god that sounds so very complicated and i thought i had problems yes us Aussies do take a lot for granted….okay i am now past the solking soakie sad stage of my dilemma i now have to think of a way to solve my problem the way i see it i have a few options but please feel free to help me decide which option to follow
Option 1 = Aussie Home are willing to give me 13,000for a deposit my current interest rate on PPOR is 6.45% if i pay them $500 i can have this money and my interest rate drops to 6.00% and then i can search for a bank that will lend me the rest of the money needed along with good old MInsurance costsor 2nd option is to wait a few months and then go ahead with the investment property in say 3 months and maybe then cause the interest rates have gone up their might be more bargains to be had…i do have a tendancy of being to much in a hurry in the past and i want to make sure i dont jump into things because of being in a hurry i want to do things for good reason not to be in a hurry…so which option would you do if you where in my situation???I am a bit confused ,i thought that the rental income would be of a primary consideration by the lender as to wether they approve or decline the loan.Isn’t that the basic of aquiring ip’s
regards frankHi Kristine,
From the information you have supplied I think you should have enough equity in your ppr to borrow more than $13K, This would be subject to serviceability,
option(1) $13K may get you a 95 percent lend, (that would be 5 percent deposit & 5 percent costs) but LMI would come in to play.
option(2) access more equity in ppr and borrow under 80 percent of the LVR for IP purchase, and based on serviceability and lender guide lines you may not have to pay LMI.Please seek professional advice before you make any commitment, good luck.
regards Steve.Mobile Mortgage
[email protected]
Phone 0402483216Hi Gentlemanjim,
I would have thought that the rental income would be of a primary consideration by the lender too. But it did actually happen to me, I rang a lender, I was inquiring about finance for an investment property and whilst we were discussing loan serviceability, they stated that they do not take into account rental income as they had to make sure that the loan could be serviced, regardless wether the property was tenanted or not. I made the comment because ‘I think’ it was Aussie, but it was so long ago that I just can’t remember for sure. Anyway, they may have changed policy now. Some lenders have all sorts of weird policy over what incomes they will and won’t take into account.
Cheers
Kym
For example, ‘what if’ you reduced your credit card down to a $1000 limit – what would your borrowing capacity be then?Why does the limit of your Credit Card become an issue? My “limit” is $6,500, but the actual amount owing has been well and truly under $1000 for about the last 10 months.
Forgive me if I’m showing my ignorance again..
Cheers
DougI admit it….I know nothing..
Thanks Kewl Dude
I have just come into a property down in Victoria
that i was to use as my backup to start an investment program. The property is on beach Road Parkdale, 2br unit, app>$500k .Have spoken
to a couple of local agents,(I am on Gold Coast),& they say rental @ $350.00 pw.I thought that this would be my start up for ip’s.
regards frankHi Doug,
The reason your cc limit can become an issue is because when a lender makes an assessment as to wether or not you are able to adequately service a loan, they take into account the actual limit of the cc, not the amount owning.
They do this because, at any given time you will have access to $6500 worth of finance/credit. That means, the day after you apply for a ip loan you can max out your card. Lenders have no control over this & therefore must take into account your max. monthly commitment to your cc when assessing your loan serviceability.
You’re forgiven[
]Frank,
Your IP? – I hope all goes well!![
]Cheers
Kymokay Steve i understand that but which option do you think is better wait and save or go for LMI option?????????or anyone else that has a opinion
okay Steve i understand that but which option do you think is better wait and save or go for LMI option?????????or anyone else that has a opinionHi Kristine,
I am afraid i cant answer that question, There are to many variables, there may be higher interest rates if you wait,but property prices may come down,and a lot of other issues also, feel free to contact me any time,
Keep asking questions and doing your research, this forum has a wealth of knowledge and knowledge is power,
Good luck,
Regards Steven.Mobile Mortgage
[email protected]
Phone 0402483216
]I am so sad today i have waited 3 weeks to find out that i can not get the money i am after for a loan what should i do now any suggestions would be greatly appreciated okay this is my situatuion we have a joint income of 64,000 we have 5,000 saved for property we have 79,000 equity we have a credit card that is paid every month 3,000 limit fortnight commitment for PPOR is 1,300 and we can only get a investment house that is worth 70,000 i have tried to get a loan through our current lender Aussie Home Loans but our home was not valued at what we thought it would be it fell 20,000 less buger…..what would you do now if you were me we would like to renovate our home a little anyway but should we do this with the cash or should we save in our redraw??? or maybe you think we should do something else Please help me [
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