Does anyone know how i can get finance when i have a low income.Have heaps of equity.But no job.
Russ.
well equity is one thing, servicing a loan is another, not sure banks like pensions
Cheers
It is possible if you have the equity and you know you can afford it.
You would need to provide more info for specific advice.
Regards,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hi Russ you can only borrow if you can aford to repay the loan if you are going to rent it out it should be able to support the loan with out your input.if you need to know how much the loan will cost in monthly payment at interest only…take the loan amount say $120000 x by the interest rate say 6.69 div by 365 x that by 31 =answer $681 per month interest only [this is an eg only there are other factors in getting a loan and the CRA report is a big factor …[email protected] hope this helps
Quote:if you need to know how much the loan will cost in monthly payment at interest only…take the loan amount say $120000 x by the interest rate say 6.69 div by 365 x that by 31 =answer $681 per month interest onlyQuote:May be a dumb question, but why do you need to multiply by 31?I thought interest only was just purchase price multiplied by the interest rate, then divided by 12 to get the monthly repayment.
SO have I been working this out wrong?[
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So I would get 120,000×6.69%=$8028/12=$669 per month.[?]Oops I meant to say Loan amount, not purchase price.
My thought on the subject I guess I have always done my calculations this way …
you take the loan amount divide it by the current interest rate multiply by 365 days in the year you now have a daily rate x that by 31 days in the month this is only rough because there are 30 31 29 days in the months but it gives a good indication …[]AHA I can see it now! Thanks for explaining.
Thanks for the info guys.I have just read 0-130 and i believe that if u can +cf property from renting then why do u need an income to service loan.
Russ.
Hi Russ,
You, and the banks, need to include some consideration for vacancies – which is why (I suspect) most banks do not consider 100% of rental income when calculating loan serviceability.
Derek
There are lenders out there that will lend based on valuation only. No CRAA checks and no income checks. (They do not care if you can service the loan or not). So yes you can get a loan, but be careful.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
my bank does valuations and rent at 48 weeks a year. as part of the income I will receive.
eg four weeks vacancy rate as a bufferI guess it depends on the lender … the lowest I have seen
to date is 75% ( or roughly 39 weeks ) of the rental income
being included …The obvious reason for excluding some of the rental income is because rental income by itself doesn’t tell us that one needs to take into account the vacancy factor for the properrty, the repairs, maintenance, rate and possible land tax charges, insurance etc etc.
So a lender who will only take say 80% of the rental income into account is doing it for that reason.
Pisces
Russ,
You said: `I have just read 0-130 and i believe that if u can +cf property from renting then why do u need an income to service loan.´
There is no guarantee that we can have a tenancy for 25 years or the term of the loan. What if you need major repairs or all the other things associated with a mortgage on an old house? Generally old houses are the only ones that are CF pozz these days.
It is a real risk for you to have a new mortgage on a pension.
kay henry
yep hard enough on wages and other income at times
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