hi everyone, I have a major issue with mortgage brokers. There are several times that I just thought we have found a good one but they ignored us, happened three times, including a very reputable broker in somersoft website. I understand if we are not good enough for them, they will have to leave and look for a better one, but we would so appreciate if they can tell us directly instead of just turning their phones to voice messages and never get back.
Can anyone here objectively have a look our situation and give us some advice? we are so confused.
We have a house in inner melbourne, worth $700,000, we have $400,000 equity.
My husband work permanently for local gov for three years, full time, stable job, $63,000/year.
I started work as an casual staff for gov, and also work for childcare agency if the gov casual work doesn’t give me enough income, $25,000-28,000/year. I only started with both jobs recently but I have more than one year previous experiences for both positions with other organisations.
We have two young children.
No credit card or debt.We are looking to borrow $350,000-$400,000 for our first investment property in melb. Do you think it is possible? I am not sure if we should use line of credit or just borrow against the income, or we just can’t get any loans. I also would love to hear if you have any recommendation about good mortgage brokers who may be able to help us, but really a bit scared of those good-looking recommendations that are actually just advertisements to peers.
Thanks very much for your time!
-
This topic was modified 9 years, 4 months ago by
mddedf.
Hi mddedf
Wow sounds like you’ve had some bad luck.
Among the reasons why the brokers you spoke to didn’t get back to you, reasons could be:
They are insanely busy and cannot keep up with demand; or
They did not realise you had further questions beyond your initial enquiry; or
They did extensive research on your behalf and then got the impression you didn’t wish to proceed (misunderstanding perhaps).On initial observation it looks possible. There may be factors at play in your circumstance that change this, but feel free to give me a shout and I’ll happily dig deeper for you.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Firstly welcome to the forum and I hope your experiences here are better than on Sommersoft.
Whilst Jacqui has raised some reasons why Mortgage Brokers don’t respond it i think it is common courtesy to respond to a client even if it is to say “sorry i don’t believe we can help you further”.
We try between us to answer every email / phone call within an acceptable time frame.
There are a couple of variables which will determine whether your can service such a loan but certainly from the basic numbers i do not believe we are too far away.
Cheers
Yours in Finance
0-40 Properties in a decade. Email me for a copy of my API interview.Richard Taylor | Australia's leading private lender
Hiya OP
Did you email, call or both?
If email – it could have ended up in their spam filter. I’m always plucking out emails from the spam filter from new clients due to the subject having sentences such as “need a loan”, etc
I haven’t crunched the numbers but on the surface – your borrowing capacity looks a bit tight.
In terms of funding the IP – general structure is to:
1. Release equity in PPOR to cover deposit/costs on IP
2. Set up an 80% loan for IPCheers
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]
Thank you Jacqui for your analysis.They are very helpful but I think I can give a bit explanation.
They are insanely busy and cannot keep up with demand
– I totally understand this is the case, but I called several times during the week after our initial consultation, I didn’t get any answer. The problem is that all the brokers had done basic calculation and seemed everything was ok with their lenders at the initial meeting. I was just calling to provide a bit further information. I can see we are not the easiest case as our low income, they probably got much better clients to spend time with. But just a bit sad and confused why they were all very kind and friendly at the initial meeting and changed suddenly.They did not realise you had further questions beyond your initial enquiry;
– I feel this is unlikely because we had arranged to contact further for the extra documents on the initial meeting. They definitely knew the arrangement.They did extensive research on your behalf and then got the impression you didn’t wish to proceed (misunderstanding perhaps).
– I am not sure about this one, and I don’t understand why they suddenly assumed I don’t wish to proceed once they did research on my behalf. Do you mean they did a bit more research with the banks?Sorry I am very new here and thanks for your time!
Thanks very much, Richard. I wish they did the same as your company.
Do you mind advising me further what the couple of variables are that influence our lending capacity.
Thanks for your time.
Thanks so much Jamie for telling directly that our capacity is tight. We really just need a simple sentence just like this from them so we didn’t have to spend weeks wondering what the problems are.
I will also look into the structure, some lenders told us to release lots more equity than 20%, others only focused on investment loan and didn’t mention about the equity at all. There is one who mentioned similar loan structure like yours.
Some also said to get a loan that bonds our own property and investment property together, but I thought it would be better to separate two loans.I could be wrong.
I feel sorry to those brokers who work hard and really help people, I also feel sorry to many people like us who just totally lost in the confusion.
Hi again mddedf
I have to say anyone who told you to offer up your PPOR as collateral in it’s entirety has only their interest at heart and not yours and is certainly not the way we would recommend you structured the acquisition.
Usually it is a matter of working backwards in a situation like this.
Let us assume the intended purchase price of the new property is 400K.
You would look to secure a loan of 80% against this on a standalone basis only.This leaves a shortfall of 80K in regards to the purchase price and maybe a further 20K to cover your acquisition costs etc – Total 100K.
You would set up an equity loan secured behind your PPOR for the $100K and use these funds to bridge the purchase price.
Both the interest on the 100K secured against your PPOR & the 320K secured against the Investment property itself are Tax deductible.
Course doing this means a little bit of forward planning and we would normally start with the PPOR restructure.
Now in regards to the variables in the main these will include the likely rent you will receive on the new property (I have assumed a Gross return of 5%) and the period you have been in Casual employment (I know you mentioned you have held similar positions to your current employment but was unsure as to whether you were also Casual).
Either way feel free to give us a yell (neither of us bite) or shoot us an email and we can provide you with a more accurate assessment off forum.
Hope this helps.
Cheers
Yours in Finance
0-40 properties in a decade. Email me for a copy of my API interview.Richard Taylor | Australia's leading private lender
Thanks SO much for your explanation, Richard. I feel much clearer after reading your reply.
I will contact you this week.
-
This topic was modified 9 years, 4 months ago by
You must be logged in to reply to this topic. If you don't have an account, you can register here.
