I intend to get a loan for a popr sometime around April 2006 (when our current rental lease expires)
We are currently renting for 180 a week in Hobart.
We anticipate trying to find a property for
between 150k to 175k
The loan will be in my name only (as partner has previously owned property before and I want the FHOG (even if it means she cant technically actually live in it with me for 6 months)
I earn about 50k a year gross
I have currently 4 debts approx 25k
1 motorbike loan= 16k repayments 430 per month
1 personal loan= 5k repayments 200 per month
1 credit card= limit 3k, current 2800 (60 per month)
1 store card= limit 2.4k, current 900 (interest free period still so technically 0 a month, but I’m paying 90)question 1: to establish a savings history, how much do I need to save per month, and for how many months?
question 2: do any lendors consider your current rental cost towards their ability pay calculations
question 3: on the above income and debt, how much would the lenders be likely to loan me? 95% of valuation with fhog…
question 4: in order to qualify better, would it be better to pay down the personal loan of 5000 first or do the banks look down on the credit cards.. should I have them paid and cancelled by the time I apply for the loan? (I have the benefit of a debit card on my main bank account which I can use for bills so I dont _need_ to have a credit card)
question 5: which is better : Redraw or Offset account if whilst saving for investment property deposits we want the money to be reducing the interest on the popr mortgage?
feel free to pm me if you need more info.
More stuff on the voigtstr at http://users.bigpond.net.au/voigtstr
Why wait until the lease expires? You can always break the lease if you need to. Or is it just a handy time target?
Given you don’t wish your partner on title – can we use her income to reduce your debts?
You need to aim for a minimum 5% deposit saved over 6 months. I suggest you set yourself a goal for $10K by April 2006. Or better if you can do it.
There are no deposit loans available but they are not the most optimal solution in my eyes.
I would pay the minimum on the loans and use your savings to save that deposit. LMI saved at purchase will probably outweigh any interest you might save.
Those loans will really hurt your serviceability, however I think the loan is doable.
If you had the deposit and savings history today I think I could find you something – as no doubt could any broker worth his salt.
Please don’t take this as a given as I really don’t know enough about your situation to give advice.
Redraw vs Offset?
Offset is usually my preference in nearly all cases.
Lastly, all lenders take the rent paid into considerationin that itis not included when working out what you can afford to pay from your income.
Hope this helps and please feel free to ask questions.
Cheers,
Simon Macks
Residential and Commercial Finance Broker[email protected]
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.
Originally posted by Mortgage Hunter:Why wait until the lease expires? You can always break the lease if you need to. Or is it just a handy time target?
Breaking the lease here could mean paying extra rent payments until the real estate agent finds another tenant. So we could end up trying to pay a mortgage as well rent. Also the extra times gives me time to either pay off the 5k loan thereby increasing serviceability or paying off and cancelling the cards (helps qualifying?)
Given you don’t wish your partner on title – can we use her income to reduce your debts?
No she’s only on 35k and has her own debts to service. She will be paying helping pay the mortgage, but wont be on the paperwork since I want the FHOG.
You need to aim for a minimum 5% deposit saved over 6 months. I suggest you set yourself a goal for $10K by April 2006. Or better if you can do it.
I can save 4k (500 a month) by April and pay off the 5k loan.
or
I can save 4k (500 a month) by April and pay off and cancel the credit card and store card.
or
I can try and save 10k (approx 1250) and pay only minimums on my debts.
And
Some loans allow money as gift to be used for deposits (my parter has about 6k to give me)
Which of the above provides best servicablity / qualification?
There are no deposit loans available but they are not the most optimal solution in my eyes.
I would pay the minimum on the loans and use your savings to save that deposit. LMI saved at purchase will probably outweigh any interest you might save.
Those loans will really hurt your serviceability, however I think the loan is doable.
If you had the deposit and savings history today I think I could find you something – as no doubt could any broker worth his salt.
Please don’t take this as a given as I really don’t know enough about your situation to give advice.
The only other information I could give would be a monthly budget spreadsheet showing living expenses. I have about 1.8k in ING direct.. My partner has about 6k I think.
Redraw vs Offset?
Offset is usually my preference in nearly all cases.
Lastly, all lenders take the rent paid into considerationin that itis not included when working out what you can afford to pay from your income.
Hope this helps and please feel free to ask questions.
Cheers,
Simon Macks
Residential and Commercial Finance Broker[email protected]
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.
My Answers in RED
Thanks for that Simon
More stuff on the voigtstr at http://users.bigpond.net.au/voigtstr
I think it would be better to take this offline from here. Can you drop me an email please.
Happy to provide you enough info to get your plans rolling!
Cheers,
Simon Macks
Residential and Commercial Finance Broker[email protected]
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.
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