Hi guys, this is probably one for the mortgage brokers, or maybe someone else has been in my situation before.
I have submitted an application for pre-approval for a split loan of around $125k with ANZ. I am supposed to hear back from them on Tuesday, but I’m too impatient to know what my chances are.
Here are the details:
-I am 19 and have about $17k in the bank, with full documentation of savings
-I work on what is deemed a “casual” basis, however my shifts and income are quite regular (gross wage $650pw – been higher over Christmas/NY with all those public holidays)
-I have no debt at all – don’t own a single credit card
-I’m going through a broker who I am quite impressed with compared to most I have spoken with in my area.I just want to know what others think my chances are of securing a loan. A guy I work with (who has no idea when it comes to organising his finances) has a $40k personal loan with ANZ that he used half of to buy a car and the other half to pay off his massive credit card debt. I think the credit cards are close to maxed out again.
What I want to know is, why wouldn’t the ANZ give me a relatively small loan to purchase a long-term, generally appreciating asset, but they’ll give this guy $40k to piss up the wall???
Cheers,
SpankAge doesn’t negate effort – you can never be too young or too old.
Hi Spank, or is it Spanky? Hope that’s not the name on your loan application or you’ll really have trouble getting finance!! [wink]
I’m certainly no finance expert, but I’ve replied to your post because I know that the waiting can be hell, especially with a first loan application. It was quite a few years ago for me, but I remember it like it was yesterday. Hang in there – the first time with loans is always the hardest.
I had difficulty getting a first loan as I had been a temp (with consistent income) for a couple of years, and only just started a permanent job when I applied. I didn’t have any debts, nor did I have any significant assets. Basically, the bank came back and said I had to find a slightly larger deposit before they would loan me the $. I ended up borrowing an additional $6k from a family member – and then the loan was okayed.
However, there are heaps of alternative loan options around these days – lots of helpful threads on the forum – so if it turns out that the bank can’t help, I’m sure someone out there can.
Hope it all works out for you Spanky, and if you do get the loan approval, I hope you purchase a great property (assuming that’s what you have in mind).
Best of luck and hopefully Tuesday comes quickly for you!!!
Leila
Thank you Leila for your quick reply.
One thing I have noticed, however, is that, after a couple of days I have not received a “yes” or “no” common-sense response to my inquiry about my chances of gaining finance, or why a colleague (who is under the same employment arrangements) is able to do what he has done.
Perhaps I should change my profile signature to: “Why is it called Common-Sense when it is not common at all?” (Especially when it comes to lending “specialists” at the major banks.)
I know this sounds a bit negative, but I don’t apologise for that.
I’ll achieve my goals sooner or later, like I said, I’m just too impatient. So, to anyone who has been in my predicament before, I promise that I’ll one day make the banks wish they’d given people like you and I a lot more money, a hell of a lot sooner.
Age doesn’t negate effort – you can never be too young or too old.
Hi its Ezy…you have two things going against you
as far as the lenders are concerned, usually its not the banks that say ya or na its the Mortgage insurers, if you can by pass them its all systems go…so you would need 20% deposit plus a further 3/5% gov fees and charges…They will be looking at the length of your employment.If you could get a letter from your employer saying you have a permanent casual job[ This is tricky because the employer doesn’t like being commited . The letter should read permanent parttime…..other than that would a family member take the responsibility of covering your loan with the bank?….You could lose the First Home Owners Grant and say it is an investment property and then they the lenders might be more interested .Dont be dishartened…it depends on how keen you are to get into the investment game , there are lenders out there who will lend , sometimes the higher the risk the higher the Interest rate , BUT if you need to get started and you can see a profit even with a higher Interest rate, Talk it over come back to the forum and run the fig past your new found mates.
It is always EZY [we wish][buz2]Hi Spanky,
Depending on what state and industry you are working in, you may actually be able to seek a claim as a permanent employee if you have been working regular hours for a certain period, sorry this is vague but you should check it out with your union/state awards etc, this may help with your employment stability and in turn securing finance. In my experience, use brokers and/or get saving to 25%+ of the loan required as there are some good low-doc loans around.Meg + Russ
meg
Then if worst comes to worst go to a non-conforming lender, if the figures work for you. They charge a higher interest rate, depending on circumstances.For example Liberty start at 6.99% approx and can go up to 10% or higher, however, this is normally for customers with major credit default issues.
Just hang in there, it’s only early days yet. ANZ are pretty slow for turnaround times, a lot of the time. ANZ is probably your best bet to start with, though, as they have a bit more pull with Mortgage Insurance than other lenders.
Hi Spanky,
Does your parents own their own property? There is a loan called family equity where you can get your parents gurantee 20% of the loan and you only borrow 80% of the loan which save you a lot of trouble to go through the LMI. If you have a good length of employment. or even some lender only required a employmeny letter plus a phone call to your employer to comfirm your income. That would be easier for you if you can get the letter, u have to include lenth of the employment, annual income.Plus be careful, every time you apply for a loan, u will get a record on your credit record. I mean you did every well with savings in the bank being 19… You will be succeess for sure !!!!
Hi Spanky, i thought i would reply and give you an insight on what i have gone through.
i’m 19 aswell, and i can tell you its annoying. I got knocked back on a 90% LVR because i was younger then 20, so that was annoying, therefore i needed a greater deposit. So that was the first problem.
The second problem was ANZ turned me down because the money showed on my statements were inconsistant. Which was because i work for my dad, and he just pays me when ever. So they didn’t like that.
3rd, I had to get the house valued, and when it was valued the guy wrote a <edited> value and said heaps of bad stuff, and valued it 8grand less then i bought the place for. His reasons were beacuse on that day NZ had 50mm or rain and there was water dripping in 3 different spots in the house and wasn’t clean outside. So the lenders said we wont lend to this house.So then i thought i was screwed.
Long came mum to help out “LOL” just as i was about to pull out of the deal. Mum without any investing experience, nor did i have much, but i did at least know something. But mum knows how to talk to people.
She organised the builder to inspect the damage, and he said it was just a blocked drain which caused the water the overflow, so would only cost aroudn 350 to fix. So then mum rang the guy who did the valuation told him to do it again at the price with the things fixed, minus the cost to repair it. Valuation now at the price i signed up. And lenders have agreed to give me the money.
YAY
Was also harder getting a loan in NZ earning 400 dollars a week. But can be done.
So i’m sure you’ll be able to get a loan, but you may just have to go through a couple like me. I suggest a Broker, they are fantastic.1 IP down, and good luck to you.
I also screwed settlement time, went unconditional before valuation and ran out of time. Now have just been approved and been given an extenstion on the loan. Was looking bad, but now i’ve very excited.
Also if getting a place overseas, send me an email to
And i’ll forward you a really good site, that are a lot cheaper then banks. I’ll earn referral points as well.
Spanky,
The only issue for you is your employment, have you been there for long? You must not be on probation if you havn’t. Your income is sufficient to service 125K. The deposit you have seems more then large enough as ANZ only requires 5% of the purchase price – but what is the purchase price? I’m assuming about $146K and is it for owner occupied? Your broker should be able to work out your servicability and eligibility for this loan and give you an indicative, although the mortgage insurers have final say.
I would indicate that you are eligible.
Ezy – are you even a broker?? If so then why would you suggest the lender is more interested in an investment? Mortgage Insurers typically ask for lower LVR’s for investment purposes, also spanky here would have to then include in servicing rent he/she pays to live and only 80% of rent for investment would be included. Not to mention he forgoes the First Home Plus stamp duty exemption and FHOG which are no doubt helping him/her to offset LMI fees and other costs.
ALSO I have re-iterated a million times over on this d@mn website and I’ll SAY IT AGAIN. If you purchase an investment you DO NOT RELINQUISH The FHOG. You can still purchase an owner occupied property and get the FHOG later, as long as you do not reside in the investment. READ THE WORDING ON THE APPLICATION – IT IS AS CLEAR AS DAY!!!!!!! (just so there is no confusion again regarding this matter…)
Spanky I don’t know why this broker impresses you, they should be keeping you informed to the point where you don’t have to rely on the advice of non-professionals posting to your responses…
???[blink]???
Liz
Mortgage Lender
Oh yeah, in answer to your personal loan question.
Personal loans are a WHOLE different kettle of fish. Lenders use many different methods of ‘credit scoring’ to assess an individuals capacity to repay. Personal loans are unsecured and very different in nature.
I would assume that your ‘friend’ had told the bank he would close down his credit card on getting the personal loan finance, and then didn’t?
Or his income is just regular and stable and if he has no defaults (which he wouldn’t cos they gave him the loan) then the bank is more then happy to make bucks out of him. You have to remember a personal loan amortizes in about 5 to 7 years the bank charges a lot of interest and are happy about it.
You’d be surprised though Spanky, I can get home loans for people that can’t get personal loans, to be quiet honest home loans are easier to get in a lot of cases…
Liz
Mortgage Lender
Originally posted by Lizzy:If you purchase an investment you DO NOT RELINQUISH The FHOG. You can still purchase an owner occupied property and get the FHOG later, as long as you do not reside in the investment. READ THE WORDING ON THE APPLICATION – IT IS AS CLEAR AS DAY!!!!!!! (just so there is no confusion again regarding this matter…)
Yes, the application is poorly worded, but according to my reading of the First Home Owner Grant Act 2000, the application may well be disapproved:
11 Criterion 4—Applicant (or applicant’s partner) must not
have had relevant interest in residential property
(1) An applicant is ineligible if the applicant or the applicant’s partner
has, before 1 July 2000, held—
(a) a relevant interest in residential property in the ACT; or
(b) an interest in residential property in a State that is a relevant
interest under the corresponding law of the State.Am I wrong?
Cheers, F[cowboy2]Read the FRONT PAGE of the FHOGS application found at this link http://www.osr.nsw.gov.au/pls/portal/docs/page/downloads/other/oda012.pdf
Yes I realize it is not black and white but I am trying to dismiss the belief that if I, as a first home buyer, bought an investment today, I could not get the FHOG later, which is untrue, I could.
The rules also cover your spouse/de facto i.e. they are treated as the same entity as yourself.
Basically what you are trying to say, bar the nonesense and bullet points, is that if you owned a property prior to July 1 2000 regardless if it was investment or not you are not eligible. After this date if you owned AND OCCUPIED the property you are not eligle. So technially if you owned but did not occupy the property you could still get the FHOG. This information is much clearer on the front page of the application.
First home plus is different matter not to be confused with this one.
I’m not re-iterating this information again!!! Please search for my previous multiple postings in multiple threads on this subject or just read the form from OSR and stop being misinformed.
Sometimes even the people at the OSR don’t get it. But it’s all there, clear as day, in the wording….
Liz
Mortgage Lender
1300 780 826
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