Hi Guys,
I’ve finally got my cousin to consider buying a house about 30 mins out of Cairns for about $150K. It’s a steal but he is buying from a mortgagee sale so it wont last more than a day but they have accepted the price, he has paid $1000 until he gets the load approved but unfortunately I’m not 100% certain on what he is eligble for so I thought I might post what I think he is and people provide commentary on this
1. FHOG $7000
2. Pays not stamp duty on property and no mortgage duty on loanIs there anything else I’m missing?
I just want to know so I personally understand what he can claim
[baaa]brisbanescouting
Hi,
Well I’m not sure what you mean by claim, but:To borrow funds the bank needs to know how much the place is worth (they’ll do a valuation) and they need to know how much is to be borrowed (loan to value ration: LVR) and then how much net income the borrower gets.
There are legal fees (land transfer, title search etc…) and loan application fees which will probably all up total about $800 or so.
Assuming he gets the $7k then all up he has put in $8k leaving $142k = 95% LVR = lenders mortgage insurance (assuming he can get the loan). The saving grace here would be if the property is valued more than the asking price (very unlikely).
So your friend would need another $22k to bring the LVR down to 80% which is generally the cut off for insurance. This extra could be equity in other assets (another property, or a guarantor’s property). However, the closer to the 80% mark he gets the less insurance he’ll have to pay and it may be that the insurance is not that much.
Shopping around you can find home loans on special with no application and set up fees (save about $600 there).
Is that the sort of info you are after?
Surrey.
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