Hi.Im looking at buying my first home and i need a bit of advice.
I would appreciate it if someone could tell me if im even close to being approved
for a loan before i contact a broker.Ive tried a few loan calculators from a lot of lenders with very differnt answers
which has just left me confused.So here is my situation.Im currently earning 42k pa (before Tax) and have a 75k deposit,looking to
buy a 3 bedroom townhouse in western sydney for under 340k.I was planning to rent out a room to help make the payments
on the loan.Not shure if brokers take this into consideration or not?I dont have any debt either.
I know its probably a bit vague just trying to get a rough idea before i call a broker becuase i really dont know where im
at and i dont want to look stupid
Thanks.sprunk
As a guide you can borrow about 5 times your annual income. So you will come up a bit short I am afraid.
Boarders cannot be taken into account for income, but if you were to rent the place out and stay with parents, then you may get over the line.
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
Hi Sprunk
Firstly welcome to the forum and I hope you enjoy your time with us.
Most lenders wont take into consideration any border income (There are one or two i can think of that will) however from the rough numbers provided the loan to valuation is less than 80% which will work in your favour.
Serviceability varies from lender to lender and without knowing all of the information it is difficult to give you an exact answer but to be honest you are certainly in the ball park.
Think to do is to decide what features you want from a loan as many of the modern day products come with uneccessary credit cards etc etc which may impinge on your borrowing amount.
A good independant Broker should be able to put you on the right track.
Richard Taylor | Australia's leading private lender
Ok thanks.I was affraid that was going to be the answer.Back to the drawing board i spose
Thanks Richard might call a broker just to see what options i have.
Gidday Sprunk,
Just before you call a broker or lender for that matter, crunch your numbers for yourself. Remember, lenders and brokers will sell you as much debt as they think they can get away with, which has gotten a lot of people in trouble in the same area that you are thinking of buying in.
Buying property is an excellent dream and a solid investment providing you can live well too.
Stay mindful that over the last 15 years, good variable rates (SVR) have averaged at around 7.09%, but spiked at 9.9% and in the last 5 years they averaged around 7.17% and peaked at 9.02% and you are thinking about this move at a time when interest rates are at record lows.
So before you call anyone who might be just as keen to get you into debt as you are to own your own home, why not jump on a mortgage calculator, punch your numbers in based at different interest rates between 7 and 10% and do a reality check on how well you would when interest rates return to that level.
Good advice, Michael.
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