Check out:
http://www.mortgagepackaging.com.au/tma/index_files/low_document_loan.htm
Low doc loans usually require 20% deposit plus the fees. Some lenders go higher but you will paying through the roof for interest rates. This would be more expensive than the 100% loans.
Regarding the 100% loans, you would not qualify if you just started working as a contractor. Check out:
http://www.mortgagepackaging.com.au/tma/tools_and_calculators/TMA_Low_Deposit_Lending.doc
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksYou could buy a cheaper house say 50 km from Melbourne in SE suburbs at $170,000 and use all your resources to pay it off as quickly as possible.
Pay fortnightly rather than weekly. Once it is paid off you could sell it and use the proceeds to buy into a dearer house later. Deposit 5% plus hidden expenses is approx 5% to 6%
that is approx $17,000 minus first home buyers grant $7000
loan of 160,000 would be $307 a week in interest. Alternatively use an offset account to put the extra money into as a saved up future deposit and to reduce the interest on your loan. This is a baby step towards owning a dearer house.Thanks all,
I think using a mortgage broker is definately the way to go but great to know it can be done.
Mining towns are definately not the best place to start,harder to get finance,sometimes harder to sell, have to have a enter exit plan,and cross fingers it works.thanks for your time
Hi first timer,
Are you paying $800 a week or per month.
If you are paying $800 a week then have you thought about finding somewhere cheaper to rent for a while for say $300 a week, then you can save $500 a week towards a deposit (making sure you actually put that money aside and not spend it). Obviously if you are paying $800 a week then wherever you live must be nice, but if you really, really want to buy your own house then you might have to make a few sacrifices for a while such as living somewhere not quite so nice.
Good luckHi first timer,
I would agree with Duckster by using an offset account to reduce your interest on the loan. I think you would be wise to shop around with mortgage brokers. I would also agree with The Mortgage Advisor. You could do far worse than emailing Mobile Mortgage for advice on your situation.
Regards,
Gatsby.I’d go along with Duckster but take it down another peg or two. I can’t for the life of me understand why someone just starting out in employment with little to no savings would want to burden themselves with a whopping $ 300K NTDD…seems crazy from where I am sitting.
Why not start out with a crappy 60 or 70K apartment somewhere in some dive reasonably close to your place of work. Or better still, what about a caravan ?? Swallow your pride for a year whilst you pay this off completely and move up the scale from there.
The longer you spin your wheels on this huge debt, the less time you’ll have to really scoot along in the fast lane of wealth accumulation.
I can’t believe banks and mortgage brokers actually encourage younger folk to take out such enormous loans to start off with. Begone the dreadful LMI. If you’re being asked to pay LMI – you’ve got your sights set too high…IMHO. [blush2]
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
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