I was going to buy an IP and my parents were going to put their house down as a security. They have since changed their mind and I only have $11000 in my savings account, $5000 in shares and $3000 in my everyday account.
Is this enough to buy the house if I choose FHOG instead which is another $7000.
That would take me up to $26000. With that I have to pay some sort of deposit, my outstanding fees (about $1500) and mortgage insurance.
My annual income is ~$61k, so repayments shouldn't be too hard.Any ideas whether it's doable?
Which state are you purchasing in?
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
NSW
The loan amount required:
* $325,000 + costs (say $3000 assuming no stamp duty ) = $328,000
* $328,000 – $26,000 (deposit) = $302,000 base loan required
* $302,000 / $325,000 = 92.9% LVR. This is acceptable to a number of lenders.
* $302,000 + mortgage insurance = total loan amount requiredThe savings requirement:
* 5% of $325,000 = $16,250 = minimum genuine savings with most lenders
* The deposit you have in savings + shares = just about 5%
* Although some lenders don't accept shares as savings…
* 1 lender will take your savings + FHOG and as long as more than 5% is OK with them.
* A few lenders don't require genuine savings but you pay moreSummary:
Definately doable……..talk to a broker and have savings history and share history documents ready for them to look at before making a decision on the lender as the savings rules will detrmine the best lender.Marty McDonald | Mortgage Experts
http://mortgageexpertsonline.com.au/
Phone MeAs the boys have mentioned as long as you can back up the information with documentation to support the numbers then 95% + LMI is available.
Couple of lenders waiving their application / valuation costs so this is a savings in your favour.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
You mentioned you were purchasing an i.p, i took from this you wont be living in it? does this mean you wont qualify for FHOG?
Initially I wanted to buy it as an IP, but since that won't work I'll purchase it as a PPR.
If I get the FHOG, can I get flatmates and rent out rooms, as long as it's my PPR? Otherwise paying for it is going to be tough (but not impossible) as I still have to pay $130 for my current accommodation.you will have to pay $130 after you purchase your PPOR? i hope im not missing something but you wil be living in it, so only paying for your mortgage as an accomodation payment wouldnt you? or are you going to move into your ppor for a perios of time then move out again?
I don't want to lose my current place as it's really cheap for the city and I have been there for years. So I would have both. I'm only planning to have the place I'm buying as my PPOR of six months and then rent it out.
Ok,
well i wish you all the success, there are heaps of ways to make it happen – putting your loan in IO until your place in tenanted might help bring the payments down, perhaps an extra income stream or a couple of sacrifices and you will be sweet.
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