Hi all,
Just after a little guidance/support as a first time potential buyer.
Basically the background is as follows:
I am in my first year working after graduating uni, having worked since march 2010 i have saved bloody hard and now have around $40,000 in savings. Additionally I will be eligible (i assume) for the first home owners grant – $7,000. so essentially I have $47,000 in savings ready to go.
I have no oustanding debts.
I am in victoria
Income is 57k incl super and before tax
I have found a great unit which judging my other units on the property i anticipate to sell for around $445,000.
So my first question – will I be able to get finance approved given my savings/work history?
Although this property will initially be a PPOR, I will probably be looking to convert it to an investment property at some stage (as early as 3-6 months after i tick off CGT requirements) so i was looking at an interest only loan with 100% – would this be the path others would recommend?
Thirdly, is it possible to combine the above loan type with a combination of interest types (sorry, probably not technical the correct term, but by loan types i mean fixed / variable) as i was thinking something like the following:
10% variable
30% fixed for 1 year
30% fixed for 2 years
30% fixed for 3 yearsAm i being to naive?
Finally, I am most likely going to have someone live with me paying rent, now does this open up potential scope to claim at least a proportion of interest/depreciation/r+m etc?
Thanks guys
appreciate your help
You'll need to live in the property for 6 months to satisfy the criteria of the FHOG. This will also satisfy your CGT criteria as well, because there is no minimum time to live in the property to qualify as your PPOR in the legislation. (Courts have suggested 3 months)
Borrowing to buy a $445,000 house will be dependent on your income, which you haven't stated.
Depending on your state, you may be eligible for limited stamp duty, but I'm not totally sure about this. Getting a 100% loan would be difficult, but this isn't my area of expertise, so I'll leave this to the MB gurus.
Hi,
Make sure you have no credit cards when you apply for the loan. Banks are interested in your credit limit, not whether there is any money outstanding or not.
I barely managed to get a $300,000 loan on the same income as yours because I had a $25k credit limit on a card.
Hi deakin
Firstly welcome to the forum and I hope you enjoy your time with us.
Many lenders i can think of wouldn't touch the deal on servcieability however in saying that a lot of others would.
If you are looking at potentially renting the property out then interest only would be the way to go although believe it or not many lenders wont allow this on a PPOR. Again many will.
As Dan has mentioned as long as you occupy the property for a 6 month oeriod starting in the first 12 months you will qualify for the FHOG however being in Vic you also need to factor in the Stamp Duty, mortgage registration etc which will come to circa $20,000 and then on top of that you will have mortgage insurance on the loan itself which could easily be $12.5 – $13k.
Your mortgage broker should be able to give you guidance in regards to going forward.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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