Hello we are looking to purchase a family home.
We would like to borrow 350k.
I am permanently employed and earn 80k gross per annum.I will be the only applicant on the loan.
My wife works casually.
We have a daughter.34k personal loan.700 per month which is salary sacrificed.
18 k car which is 500 per month.We are eligible for a FHOG of 21k I believe.Would we be able to use the FHOG to pay off the car ?
Is there a bank that would loan us the 350k ? If so which bank ?
Thank you.
hi you would struggle to get 100% finance unless you already own a property with equity. the 21k is only eligible if you buy a new house or its 14k for a second hand house. yes you could use your fhog to pay of your car as the goverment can put it in your account from what ive read on pi
Do you have any deposit?
You may not have too many costs if you are a FHO but you will still need to pay solciitor, approx $1000, and lender's mortgage insurance. LMI can be hefty. around 2% to 3% of the loan amount.
The FHOG will be available at settlement, but if you don't have a deposit most of it may be eaten up in fees.
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
I agree with Terry.
It is not the issue obtaining 100% of the purchase price but the associated costs that is the issue.
Even with an exemption on the stamp duty the loan costs are the ones you will have an issue with.
Remember 100% loan does not mean a 100% loan.
Richard Taylor | Australia's leading private lender
Eugene,
Why will you be the only applicant on the loan?
If your wife works, it will be better to have her income taken into account where possible. You will have to show her on the application if she is going to be on title. If you do not want her on title, you will have to note her as a dependant anyway, and this offers no protection of the asset anyway.
Is there a particular reason for your suggestion?
Also, the guys above are right. You have not explained if you have any kind of deposit? If not, then you will need to use the FHOG to complete the property transaction, as most 100% loans are 97% loan and 3% fees and charges. Leaving you to come up with 3% of the purchase price and costs.
Should you have an alternative strategy, then you are quite free to use the FHOG however you like. Most people tend to use it for completing the property transaction.
Best of luck.
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