All Topics / Help Needed! / Having trouble purchasing my first IP

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  • Profile photo of Nb123Nb123
    Member
    @nb123
    Join Date: 2014
    Post Count: 2
    January 15, 2014 - 5:48 am

    Hi Guys!

    Im wanting to purchase my first investment property but the bank will only loan me 210k. I have a savings of 47k  worth of savings.and current wage is 36k per year. (Also still living at home)

    Im finding it difficult to find anything under 250k and  meets the banks requirements( 40-50SQM for the unit) Im wanting to purchase in Melbourne/Vic but should I look interstate? 

    Any advice would be greatly appreciated.

    Cheers,

    Nathan 

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    January 15, 2014 - 6:30 am

    Hi Nathan

    Welcome aboard.

    Have you approached just the one bank?

    Have they submitted a preapproval for you?

    If you've only approached the one lender – you'll be at the mercy of their own borrowing capacity calculater. 

    All banks calculate max borrowing differently. So whilst one bank says your max is $x another might say it's $y

    Any decent broker could crunch the numbers for you whilst taking into account dozens of banks.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of Nb123Nb123
    Member
    @nb123
    Join Date: 2014
    Post Count: 2
    January 15, 2014 - 6:50 am

    Hi Jamie, 

    Thanks for the response!

    I have had both the Bank  and Mortgage Broker analysis the figures. 

    They both have give me the same total as above :(

    Cheers!

    Profile photo of jmsracheljmsrachel
    Participant
    @jmsrachel
    Join Date: 2012
    Post Count: 711
    January 15, 2014 - 7:31 am

    I suggest to speak to another mortgage broker. I’ve been in your shoes and helps to have a gun mortgage broker like Jamie on board. Always remember their is a thousand ways to skin a cat, it’s just a matter of jumping over a few obstacles.

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    January 15, 2014 - 9:06 am

    Hi Nathan

    I was just running the numbers for some clients and thought I'd quickly run your scenario before I closed down my software (yes – I'm a finance nerd that needs to get out more).

    Good news – your borrowing capacity is much higher than what you've been told. UNLESS you've got some liabilities that haven't been mentioned.

    For instance, I just ran it on a $300k IP purchase and it services fine based on your income, the proposed rental income, no liabilities and your available deposit.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of Colin RiceColin Rice
    Participant
    @fms
    Join Date: 2011
    Post Count: 338
    January 15, 2014 - 2:14 pm

    Different lenders servicing varies dramatically. Doesn't make sense to the uninitiated but its a fact that cant be ignored.  

    Colin Rice | CDR Finance
    http://cdrfinance.com.au/
    Email Me | Phone Me

    Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

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