Hi all,
One property near Melbourne city has got my attention and my heart has been itchi thinking about this one for the weekend. I am very inexperienced so I don’t think eventually I’ll buy the property but I would just like to try going through the buying procedure just to learn a bit more. But I got stuck in the first step:
I’m a new career starter working as an IT contractor in a big company. I got around $3500 after tax which is good but due to the nature of being contractor (and actually my contract would end soon and I’m looking for the next one) I doubt if I can get a loan at normal(market) interest rate. I don’t have any properties/equity in AU. The only thing I can probably use is some savings in bank account. Can anyone advise on how I can get an affordable loan? (p.s. the property I want to buy is worth $290,000+)
Thanks heaps!!
Cheers,
YCYou need to contact a broker and ask about LODOC or NODOC loans. Mine are at 6.85% and less if you can get one through one of the majors.
Do you have an ABN? If you have two years history it will make things easier.
Anyway best bet is to give one a ring.
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985NODOC Loan – 65% Loan – No questions asked! 6.85% Rate!!
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hi YC,
How much deposit do you have, 20%, 10% or 5%?
A 20% deposit is the usual amount required for low doc finance,
you will also need approximately 5% of the purchase price to cover associated costs.Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:1800 820 500
VICTORIAPLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
I was a contractor when I applied for a home loan. The banks I went to see just wanted me to demonstrate that I was able to get another contract soon after I left my previous contract. I showed them all time sheets as far as I could go back and they all were happy to give me a loan
Hope this helps
I had a client in a similar situation. This seems to be common in the IT industry and some banks will treat you just like an employee. BUT if your contract is ending soon, they won’t like that.
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
hum, good advice, thanks to you all.
Simon I like your idea, I actually do want to pick up the phone and ask but have been busy finishing off the project (and don’t want to make calls during business hour in the office about a personal home loan … ) I’ll definitely go to a bank and a mortgage broker for a quote after my contract finishes.Thanks to you all again!
Cheers,
YCThere are lots of alternatives – make sure you ask the broker lots of questions!
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985NODOC Loan – 65% Loan – No questions asked! 6.85% Rate!!
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
On a non-property front, if you haven’t already join an IT contract management company such as Consultants Exchange (www.cxc.com.au). They take around a 4.5% cut of your invoioce value, but you more than make this back as you don’t pay payroll tax. Because you are technically listed as a permanent employee of one of their holding companies it is much easier to get a loan. Most of these sort of companies also offer additional services such as salary sacrifice for car leases etc. The way I’m structured the recruitment company I got the job through takes a cut (unavoidable), then cxc takes an additional cut, however by going through them I avoid payroll tax, I’m listed as a permanent employee, and they manage my pay/super/salary sacrifice arrangements.
What the… why I never know there is such contractor companies???[comp] (well maybe I never expected to find any job-related information on property forums ^^) Thanks soooo much mate! Are you going to be a long time contractor? or just take it as a stepping stone in the current IT market?
Feeling the same passion, sharing the same bitterness…
Cheers,
YCI just did a loan for someone ’employed’ thru this company, and I did not know they were a contractor – nor did the bank.
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
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