Hi all,
Just thought someone could shed a light…
If I'm on a 95K salary on a permanent job in the software industry, I like to take a 95% loan for a 350K worth house.
Would this be considered a low-doc loan? I'm gonna be meeting with a lender when I get the chance next week.. I just want to be sure I got the right expectations.
It's just with the current market, I don't want to exahust my savings and I want to make sure I have enought buffer in case of "rainy days" – so I'm only prepared to shell out 5% cash for the deposit. I rather pay for the 7K+ mortgage insurance at the momment than put in an additional 52K on deposit…
Thanks!
not sure if i understood your question properly but a low doc loan means low documentation …there are various types but has nothing to do with the deposit amount …
Low Doc loans are only used by those who cannot prove their income. Max LVR these days would be 80% or less.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
It depends how you get paid – If you can substantiate your income via 2 pay slips (and a group certificate if possible) this will qualify as a full-doc loan. Otherwise if you are a subcontractor running your own business, you may have to get a lo-doc loan.
Low doc loans are generally for business owners who may not be up to date with their financials (ie because of their accountant or because they need the last 2 years tax returns and they have not necessarily lodged it, or they have only been in business for 18 months).
The bank asks them to sign a declaration stating how much income they make.
If you've got a permanent position earning a $95k salary, get a full doc loan.
Hi Sydneyme
send me a private message or email me
can help you outCheers
Syd,
Providing you do not have any major credit default issues, then the information you have provided means you can go pretty much anywhere and get yourself a loan.
Rather thasn send me a private message, I will just give you some advice for free.
Decide if you want to be able to reduce your loan over the next few years. If the answer is yes, make sure you get a loan that has a competitive rate (not necessarily the lowest rate) and has the features you will need to accomplish your goal.
If you can secure a good deal, try and use a broker wherever possible. You just don't get the same kind of advice from the bank. They will never go out of their way to tell you have to save money, becaues it is them you would be saving it from.
Deal with someone you are comfortable with.
If you have a consultation with the bank, and the person you are dealing with does not ask you the following questions as part of their assessment, turn around and leave. All they will do is apply band-aid after band-aid to your financial situation.
Decribe your spending habits?
Are you able to save money each pay period?
How quickly would you like to pay the loan down, if at all?
How long do you plan to live in the property, if at all?
Do you have plans to purchase additional property? If yes, how long?
These are just basic questions, but can have an impact on what type of loan will suit you.Good luck.
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