ferdinandch – i have saved this tread to my fav…and i will answer your question on Thursday- sorry really busy right now with the amount of refinance and new loans coming through.
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Like Michael
Number of applications is slightly overwhelming at the moment so wont give you a full answer now.
Save to say the No LMI on <85% lvr's is likely to have been withdrawn by August.
The banning of exit fees will see a lot of changes take plae for lender to recoup their costs.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Thx for both of you. Appreciated.
I have another question, which will benefit me more, have $10,000 on the top of 15% deposit or I use the $10,000 to repay my credit card debt and lower my credit card to $5,000 (will it have more effect on my serviceability?) ?
I am lil bit worry about the serviceability opinion from lenders, I definitely can pay monthly repayment; yet lenders might think differently. They do not know what lifestyle I have. I live a very modest life, one meal out every week, bring lunch to office, cook meals for dinner, no cigarette, no alcohol whatsoever, no fancy membership, low maintenance car and have been saving at least 50% of my income every month since a year ago. Yet my combined income is not that high ($6,850 to $7,000 after tax potentially after my pay increase in June). I planned to borrow about $450K (that is based on what I checked this week). It is getting scary that 500K does not give you much choices. So if both of you can give me a picture on how much I can borrow maximum, that would be great.
My fiancee just went back from St George Bank, according to STG’s calculator, My fiancee and I are allowed to borrow upto $580,000. Is it about right ?
He told my fiancee as well that Stamp Duty cannot be capitalised, but can be offset against FHOG, is it right ?
It is lil bit funny that when my fiancee showed him my payslip (from a mortgage company), he suddenly disclosed very little information, he kept repeating, “I assume your fiancee know about that. ” That is lil bit rubbish. I am working in a mortgage company as an Accountant, has nothing to do with the actual mortgage lending process.
Hi Ferdinand,
All I can say is "Just do it."
Good luck.
Angel
Thx Angelin, indeed we will just do it, but we are aware that we need to plan carefully as we have never had mortgage before, and the purchase will absorb all our money, we want to make sure everything is right from the beginning.
ferdinandch – Hi again! firstly sorry for this late reply; i been busy Franchising the business ( very exciting!!) and also had a flood of loan application …but today is my “propertyinvesting forum” day
I have done a 16 page loan personalized recommendation for you ( explains everything you need to know): but i will just add the “summary of each one here” if you want the full recommendation with pretty pictures ahah email me.
Borrowing Capacity
You can comfortably afford $485,000 – As an FHO. ( using tour credit limit of $31,000- Please what ever you do …do not lower your limit at this point- Banks will suss it out.)
This will give you the ability to buy a property in the range of $420,000- $535,000 ( with a 15% deposit)
Lenders NO LMI—-
* Citibank
* Westpac
* AFMConditions applies, but we can work thru that for you.
Deposit and Funding cost—-
At the time we apply for pre-approval the bank will only consider what you have then and there! so if it’s 13% deposit then it’s 13% …you can not say i “will have” 15% at settlement… just doesn’t work.But there are a few ways around this.
—Note—-
1 year employment is fine as long as it’s full time and not contracting, part time, causal etc..—-Interest rate—
Range from 7.1-7.2 % ( NO LMI)
Range from 6.75 – 7.2 % ( with LMI payable)Applying for an NO LMI product, doesnt mean it;s more expensive…all it means is that lender have a higher rate compared to the market in general.
—Note—-
It;s not all about rate, look at flexibility, long term goal for expansion and wealth creation and lastly fees.Lastly as i mentioned, drop me an email or give our office a call and we can go into a bit more details + give you the personalized detail quote.
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
good luck ferdinandch, good to see you are doing your home work
Glad we were able to assist ferninand
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Shape wrote:using tour credit limit of $31,000- Please what ever you do …do not lower your limit at this point- Banks will suss it out.)Thx Michael. What is the reason for that ? I actually already paid off some credit cards and closed them in last 3 weeks. Now my combined credit card limit with my fiancee is only 12,000 and debt 7,500, which I plan to pay 2,000 or 3,000 as well. I thought I will be in better place if I did that.
Bank normally ask for last 2-3 statement for Credit card…so depending when you submit the loan- you might have one statement stating $31,000 and the another $12,000 – conflicting.
So:
1. it depends when you submit the loan
2. Even if you submit now- would be beneficial to declare the higher credit limit ( since you can afford it anyway)Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Shape wrote:Bank normally ask for last 2-3 statement for Credit card…so depending when you submit the loan- you might have one statement stating $31,000 and the another $12,000 – conflicting.So:
1. it depends when you submit the loan
2. Even if you submit now- would be beneficial to declare the higher credit limit ( since you can afford it anyway)Regards
MichaelI will submit my loan in mid July after I returned from my wedding etc. About conflicting, it might be the case, but it sounds ridiculous.
Sounds like you got much more exiting and important things to think about then a pre-approval….
Congratulation on the wedding!!
Just make sure you get a loan before you start poping kids ( they can be a killer in any approval) ahah
Congrate again. Where’s the honeymoon? Good aus dollar now
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Shape wrote:Sounds like you got much more exiting and important things to think about then a pre-approval….Congratulation on the wedding!!
Just make sure you get a loan before you start poping kids ( they can be a killer in any approval) ahah
Congrate again. Where’s the honeymoon? Good aus dollar now
Regards
MichaelThx Michael. Kids can wait, 2 years won’t hurt. Honeymoon, just in my soon-to-be wife’s hometown and around. We are squeezing budget here and there for the house deposit.
Now, She and I are trying to reduce our credit limit, hopefully, next week, all have been managed, and that means, $10,000 credit card limit only. We know in which area we want to buy, so far has been focusing there, and we know the price range there. We’ll start to hunt for a place in June, after all the formalities done with wedding. I will ask for pre-approval in mid July, for sure.
The rules vary from place to place and It is at the discretion of the banker either to grant you loan or not.I think that you need to arrange a meeting with a banker in your hometown and raise the Issue with him.He can give you specific answer rather than general statements…
bastian hate to say your average Banker has absolutely NO credit discretion whatsoever.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
I read a magazine, conveyancing fees can cost $1,000 to $2,000. That is pretty big range in my opinion. How much is standard for conveyancing fees? And if it is just a basic purchase transaction, how much it will cost ?
ferdinandch wrote:I read a magazine, conveyancing fees can cost $1,000 to $2,000. That is pretty big range in my opinion. How much is standard for conveyancing fees? And if it is just a basic purchase transaction, how much it will cost ?ferdinandch -Since you are based in Sydney ( so am i
) i will quote the prices based on the Sydney market-IT depends if you go to a solicitor Or a conveyancer, the later is usually more cheaper and adequate for simple residential property but they normally can not deal with complex situations ( should it occur)
Average cost is $850-$1000 + any extra ” building/strata/ pest report ” you want to carry out ( which they will organize on your behalf)- average cost of a report is $250-$400.
Some advertised as the “package” and it range from $1400- $1700 and this price included all report required( pest,strata etc…)So a average “transaction” for conveyancing is around $1000-$2000 depending what report/search you require.
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
ferdinandch wrote:I read a magazine, conveyancing fees can cost $1,000 to $2,000. That is pretty big range in my opinion. How much is standard for conveyancing fees? And if it is just a basic purchase transaction, how much it will cost ?The guys I deal with in Canberra charge around $800 to $900 and provide conveyancing services for NSW and ACT. I’m happy to recommend them to my clients and they’re happy to offer my clients a discount
Cheers
Jamie
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]
Jamie M wrote:I’m happy to recommend them to my clients and they’re happy to offer my clients a discountCheers
Jamie
Thx Jamie, I am now considering DIY Conveyancing, I haven’t done it before, but one of my colleague said it is not difficult.
To Michael,
Previously I said that I reduced my credit limit, but I forgot to mention that I had 5 credit cards before, and I closed 3 of it. So I did not actually reduced my limit, but I paid off and closed 3 of my credit cards. Will it make any different in front of the bank ?
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