This is my first post so bear with me.. Thanks
I own a property and its worth around $300-$310k. It has a mortgage on it for $240k. I bought it last November. I have become self employed since January 2007 and I am now looking at getting married. The thing is, I have spoken to a few brokers and they didnt want to help me because I have not been self employed long enough. I would like to maximize the most of the property with a 90% to 95% lend but having trouble finding anyone! I dont really want to sell it but it seems I might have to if I cant get around this.
One thing I forgot to add was that how can u work out if the property is worth keeping? Is there a general rule? I bought this place last year on 100% finance for $240k and now its October, I have had 3 real estate appraisals and they told me they could get $310k for the place. Other down the road similar have listed for the same or a bit higher and have sold in 2 seconds flat. I didnt think it was too bad to increase in value $55k to 60k within a year.
Someone told me and I have also read on here that you should never ever sell a place unless you really have to. I jus wanted to know and warrant thoughts on when its ok to sell or not.
I feel for you, we had a similar problem four years ago. We had a home loan with a big 4 bank for 11 years and decided to upgrade. Unfortunately we had only been self employed for 6 months when we did this and our loyal bank wanted nothing to with us, even though we only needed to borrow 30% of the purchase price!
We ended up with a low doc loan which was easy as long as we had an ABN.Perhaps they are a little stricter now with all the trouble in the US.
I imagine one of the brokers on this site may have a solution for you.
Is this your home you're talking about and what do you need the increase for?
I hope not for the wedding – you should see the post in General Property "Expensive weddings, high mortgages"
CheersDiclem,
Thanks for your informative reply. This is my first home and I have a weird attachment with it. I was looking for a place for 6 months and as soon as I saw this I HAD to have it. I didnt question anything about it. It was a bit run down and I thought it had potential. I gave it a good paint job in and out, and done some landscaping and looks a million bucks. Its a 2 bedroom duplex in a street where there are 95% houses and 5% duplex. 5 min walk to a school, 10 min drive to shops and another 5 to the city.
I have 2 mortgage arrears since I have owned the place and I understand that it might take 6 months before I do anything but I am willing to wait rather than sell the place.
ANd yes the money was going to be for a wedding. I was t hinking id rather use that than get personal loans etc. Reason for this is when we move in, my partner earns a very very good income so servicing it will not be so hard.
Hi zodovolo,
If you are wanting to refi just to access some funds for persoanl use, as ooposed to get a better rate etc, as you are self employed, you may well be better gettign a low interest credit card or persoanl loan – to refi now as a lo doc will cost you, and it is unlikely that it will be a better rate than you are currently on – even if you are only at a so called 'standard variable' loan. There are lenders, one in particular that will do a good lo doc product, without even needing your abn (thus they technically cannot see how long you have been in business) but your interest rate would currently be 8.54-8.74%. . Do you really want that? And lo-doc loans of this type would not be a way I would go at the moment unless I had too that's for sure. With the costs to refi, and if you do so at a less than favourable rate, the high exit fess if you want to refi elswhere later in the first few years make it an expensive excercise. WHy not sit on the property as is, and get the funds via the other means, and then pay it off asap with the 'good income' afterwards – which leaves you flexibility to refi the house 18mths or so down the track? Just a suggestion of course.
All the best with the pending wedding – congratulations!I do not like to be the carrier of bad news however a low doc at a 90-95% lend with two mortgage arrears since November and in business since January 07 is just going to be a no go. The Mortgage Brokers that you have spoken to I am sure would want to help you however it would not be able to.
zodovolo wrote:This is my first post so bear with me.. ThanksI own a property and its worth around $300-$310k. It has a mortgage on it for $240k. I bought it last November. I have become self employed since January 2007 and I am now looking at getting married. The thing is, I have spoken to a few brokers and they didnt want to help me because I have not been self employed long enough. I would like to maximize the most of the property with a 90% to 95% lend but having trouble finding anyone! I dont really want to sell it but it seems I might have to if I cant get around this.
How much are you planning on spending on the wedding?
We did ours for a grand total of $5k.
We deferred the honeymoon as we wanted to buy a house instead.
Did the honeymoon the next year on our anniversary for around $3k from memory. Both wedding and honeymoon were fantastic.Can you delay the wedding and/or the honeymoon for another year? In the long run, your backpocket will thank you and the memory of the wedding/honeymoon will still be nice and the date will be irrelelvent.
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