Search found 7730 matches

by Otto Dargan
Fri Aug 20, 2021 6:26 pm
Forum: Home Loan Forum
Topic: JUST LAUNCHED! A Free Home Buyers Course
Replies: 0
Views: 193296

JUST LAUNCHED! A Free Home Buyers Course

Learn How To Buy A House And Avoid Costly Mistakes In Under 2 Hours.
Take our brand new Free Home Buyers Course!

Sign up for Free at: https://www.homeloanexperts.com.au/home ... institute/
by Otto Dargan
Thu Jan 16, 2020 11:29 pm
Forum: Home Loan Forum
Topic: Question about total mortgage after using equity for additional property
Replies: 2
Views: 81080

Re: Question about total mortgage after using equity for additional property

Hi ChrissyH,
ChrissyH wrote:
Thu Jan 16, 2020 10:44 am
Here's where I need clarification:
  • Is it correct to say that in order to avoid LMI, I can get a new loan up to $620K (with $124K being 20% of 620)? - Yes, please also factor in property purchasing costs such as stamp duty, legal fees, loan fees etc.
  • Is it also correct to say that if I do this, my outstanding mortgages are (1) $348K on the original loan and (2) $620K-$124K = $496K. Therefore a total outstanding mortgage of $844K? - Yes.
One last thing:
My husband and my finances are rather separate, and we want to keep it that way.
I have a tenant in my townhouse, that the mortgage on that is current 'taken care of'. (Note that the mortgage/townhouse is in my name only)
My idea is that I buy this new property (using the aforementioned equity) to live in, so that we stop renting. I buy it in my name only - the mortgage repayments be in my name only - but my husband contribute what essentially would be a 50% 'rent' payment to me.

Do you see any pros/cons in doing that?
You could do that provided your income is sufficient to service the total loan amount. Please seek legal advice on how to best structure the loan and the property. If the loan doesnt service on your income alone, there are other options such as having two borrowers, one owner.
Thanks so much!
To speak with one of our award-winning specialist mortgage brokers, please give us a call on 1300 889 743 or fill in our short online assessment form.
by Otto Dargan
Thu Nov 21, 2019 8:38 pm
Forum: Home Loan Forum
Topic: FHOG query
Replies: 1
Views: 66233

Re: FHOG query

Hi Leumas13,

Your first instinct is right. Since your name was already registered on the property title, you cannot claim the First Home Owners Grant (FHOG) again in the state of Queensland (QLD).

In the meantime, you can use our ‘prepare to buy program’ to ensure that your mortgage application gets approved the first time around.

Please feel free to leave any questions you may have.

For expert advice on your home loan, give us a call on 1300 889 743 or fill in our online assessment form.
by Otto Dargan
Tue Nov 19, 2019 8:12 pm
Forum: Home Loan Forum
Topic: Not GST registered
Replies: 1
Views: 65284

Re: Not GST registered

Hi Aussiejoe12,

You may qualify for low doc loans with alternate income verification.

Not being registered for GST may not be a problem, however, along with the bank statements you’ll need either:
  • Company financials or Business Activity Statements (BAS); or
  • A letter/declaration from an accountant to ; or
  • Old tax returns (over 24 months);
  • 12 months Bank Statements for your main business account to verify the income

With a low doc loan, you can:
  • Borrow up to 90% of the property value with one of our lenders (higher interest rates apply).
  • Borrow up to 80% of the property value with competitive interest rates (a risk fee may apply).
  • Borrow up to 60% of the property value with standard home loans rates.

Our mortgage brokers specialise in helping self-employed Australians purchase a home.
Please give us a call on 1300 889 743 or fill in our online assessment form to find out if you qualify.
by Otto Dargan
Thu Nov 14, 2019 3:47 pm
Forum: Home Loan Forum
Topic: Can we get a loan with Minimal deposit
Replies: 1
Views: 68404

Re: Can we get a loan with Minimal deposit

Hi Booey00,

From the details you’ve provided, you’re borrowing power (serviceability) works out fine. To get an accurate estimate of your borrowing power we’ll need to do a full assessment.

If you can get the $15,000 as a gift plus your own savings of $10,000, that would get your deposit to the minimum required of 5% of the property value, if purchasing a property under $500,000.

There are several things you can do to improve your chances of getting approved:
  • You have a large amount of unsecured debts. If this is more than 5% of the purchase price then this may lower your credit score and this, in turn, will limit your lender options.
  • Save up a bigger deposit. While 5% is the minimum required deposit you’d still need to account for Lenders Mortgage Insurance (LMI) fees as well as property purchasing costs such as stamp duty, conveyancing fees, loan establishment fees etc. Some of our lenders allow you to borrow 95% plus LMI (97% in essence) but the lending criteria are stricter.
  • Reduce your credit card limit. Credit cards are assessed at the full limit instead of the balance for borrowing power calculations. So, reducing your limit will make your application stronger.
The good news is some of our lenders will use your rental history in lieu of genuine savings. That means a gifted deposit will be acceptable as genuine savings. Since you’ll be borrowing more than 80% of the property value, you’ll need to pass the mortgage insurer’s genuine savings policy and credit scoring. This is where most people get declined.

This is general advice as we do not have your details at hand. Our brokers can give you a complete breakdown of your borrowing power, living expenses assessment, lender options, rates and help you find a property once you’re pre-approved. For that first, we’ll need to do a full assessment, so please give us a call on 1300 889 743 or fill in our online assessment form to find out if you qualify.
by Otto Dargan
Fri Nov 01, 2019 8:38 pm
Forum: Home Loan Forum
Topic: Will my home loan be approved? I’m a UK citizen.
Replies: 5
Views: 92815

Re: Will my home loan be approved? I’m a UK citizen.

Hi Victoria,

The home loan application process at Home Loan Experts goes through the following phases:

Once you’ve made contact with our mortgage broker, you will discuss your situation and our broker will determine your eligibility for a home loan. If you move ahead, you will need to complete a short application with all the necessary documents like your ID, payslips, bank statements, etc.

After which, there is a preliminary assessment where your borrowing power is assessed. Our brokers will compare the most suitable loans at competitive interest rates. You will be presented with two to three loan recommendations to choose from.

When you’ve chosen your loan, you will submit all your final documents to the lender. We will highlight the strengths of your application and present it in a way that lenders would best assess your situation.

The loan application process begins with a pre-approval or conditional approval where you will have to meet the bank’s lending policies. Pre-approval is only done if you have not found a property yet.

If you have already chosen a home to buy, then it will go through valuation - where the valuer will inspect the property and determine the value of the property.

Then, you would get a formal approval where the lender has the necessary requirements and they are willing to approve your loan. After which, the lender will offer you a loan contract, you once you sign it, you have accepted their offer.

The final step in the loan application process is settlement, where the lender has certified that your documents are in order and make the funds available for purchase.

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a home loan.

Cheers,
by Otto Dargan
Fri Nov 01, 2019 8:31 pm
Forum: Home Loan Forum
Topic: Will my home loan be approved? I’m a UK citizen.
Replies: 5
Views: 92815

Re: Will my home loan be approved? I’m a UK citizen.

Hi Victoria,

We do have lenders on our panel that will accept overseas saving in your UK account as genuine savings.

In some cases, lenders will allow you to borrow 90% of the property value even with overseas savings. This is looked into on a case by case basis.

Lenders will even accept overseas savings transferred from your UK account to the Australian bank as long the names of both accounts are the same and there have been regular deposits made over 3 months in your UK account.

Cheers,
by Otto Dargan
Fri Nov 01, 2019 7:35 pm
Forum: Home Loan Forum
Topic: Will my home loan be approved? I’m a UK citizen.
Replies: 5
Views: 92815

Re: Will my home loan be approved? I’m a UK citizen.

Hello Victoria. Welcome to the forums.

Even on PR visa, you can get a mortgage. Permanent residents living in Australia can borrow up to 95% of the property value, provided you have an acceptable PR visa.

Generally, to avoid paying Lenders Mortgage Insurance, you will require at least 20% deposit of the property value. Assuming your property is worth $500,000, then the deposit you need will be $100,000.

You can get a home loan even with lower deposits, but you might have to pay higher interest rates and LMI.

Also, as a permanent resident, you do not need Foreign Investment Board Review approval and you might even qualify for First Home Owners Grant (FHOG).

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a home loan.

Cheers,
by Otto Dargan
Thu Oct 31, 2019 1:14 pm
Forum: Home Loan Forum
Topic: What’s the difference between cash out and equity release?
Replies: 5
Views: 95077

Re: What’s the difference between cash out and equity release?

Hi Kenna,

With cash out, you can:
  • Borrow up to 80% of the property value if you give a reason for it.
  • Borrow up to 90% if you provide concrete evidence for the use of funds.
Banks and lenders do not have a limit on the amount you can borrow.

With equity release, you can:
  • Top up your loan to 90% of the property value if you can show lenders that you can afford the new loan amount.
  • Release more than $10,000 if provide evidence behind the reason for the equity release like buying a new property, debt consolidation, construction, renovation or putting the funds towards shares and other investments.
The minimum amount you can release varies between $10,000 to $20,000. You will need to provide your recent payslips or a group certificate to ensure that you repay the equity release.

Please note that if you are borrowing above 80% of the property value, then you will have to pay Lenders Mortgage Insurance.

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a home loan.

Cheers,
by Otto Dargan
Wed Oct 30, 2019 6:43 pm
Forum: Home Loan Forum
Topic: What’s the difference between cash out and equity release?
Replies: 5
Views: 95077

Re: What’s the difference between cash out and equity release?

Hi Kenna,

Most banks and lenders will usually choose full valuation, where a valuer will visit and inspect your property to come to an accurate value for your property. This is the best and most accepted type of valuation as it physically inspects all the renovations or other improvements that have been made to a home, which could increase the value.

We can order a free upfront valuation for you with most of our lenders. And even though you can’t choose your valuer you can choose the lender with the highest valuation.

Cheers,
by Otto Dargan
Wed Oct 30, 2019 6:13 pm
Forum: Home Loan Forum
Topic: What’s the difference between cash out and equity release?
Replies: 5
Views: 95077

Re: What’s the difference between cash out and equity release?

Hello Kenna. Welcome to the forums.

An equity release is a top up on your current home loan whereas a cash out is when you release equity from your from your home using an equity loan.

With cash out, your current home loan is refinanced to a larger mortgage, providing you with funds equal to the increase in your mortgage amount. An equity release simply creates a new loan as an addition to your current mortgage.

Since cash out refinances your current mortgage, you only have to repay 1 loan, whereas for equity release, you will have to manage 2 loans, the current mortgage and the equity loan.

Cash out would be a better option if you are looking to lower your interest rate on your existing mortgage, but it does come with higher fees and closing costs. Equity release is a better option if you have built up enough equity in your current property and interest rates have increased since you took out your existing home loan.

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a home loan.

Cheers,
by Otto Dargan
Fri Oct 25, 2019 2:47 pm
Forum: Home Loan Forum
Topic: Can my parents be guarantors, even if their property is in New Zealand?
Replies: 5
Views: 94316

Re: Can my parents be guarantors, even if their property is in New Zealand?

Hi Blanche,

You would need to save at least 20% of the property value to avoid paying LMI.

For instance, if there is a property valued at $500,000, you will need to save a deposit of $100,000 to avoid paying LMI. Essentially, you would only be borrowing 80% of the property value - and this is seen as less risky by lenders.

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a home loan.

Cheers,
by Otto Dargan
Fri Oct 25, 2019 2:09 pm
Forum: Home Loan Forum
Topic: Can my parents be guarantors, even if their property is in New Zealand?
Replies: 5
Views: 94316

Re: Can my parents be guarantors, even if their property is in New Zealand?

Hi Blanche,

Yes, you can still get a home loan approved even with little to no deposit, but you will have to pay Lenders Mortgage Insurance (LMI).

There are lenders who will accept at least a 5% deposit to get approved for a home loan, but very strict lending criteria apply since you’re essentially borrowing 95% of the property value. Besides having a stable income and employment, both of you must have a clean credit history, good asset position and the postcode of the property must be accepted by most lenders.

Also, as you are applying next year, you might be eligible for the First Home Loan Deposit Scheme, which lets you purchase a property with a deposit as low as 5% without paying LMI. Couples earning up to $200,000 are eligible and you can even use the FHOG as part of the deposit as well.

Cheers,
by Otto Dargan
Fri Oct 25, 2019 12:30 pm
Forum: Home Loan Forum
Topic: Can my parents be guarantors, even if their property is in New Zealand?
Replies: 5
Views: 94316

Re: Can my parents be guarantors, even if their property is in New Zealand?

Hello Blanche. Welcome to the forums.

No, unfortunately, the guarantor’s property must be located in Australia. Banks and lenders will not accept properties located outside of Australia as security.

However, there are other ways your parents can help besides being a guarantor.

One option is for them to give you a gifted deposit, that can be used towards a deposit for your home loan. With a gifted deposit, you might be able to borrow up to 95% of the property value. Please note that borrowing above 80% would mean that you’d be paying Lenders Mortgage Insurance as well. They can do this by releasing equity from their NZ property to gift you. To be clear, this will involve two separate loans.

The other way your parents can help is through a parent assist home loan (this is only offered through some lenders). Besides providing you with the deposit, you will have to pay back your parents with a small interest amount as low as 1%. You and your parents will need to get independent legal and financial advice before agreeing to the parent assist home loan.

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a home loan.

Cheers,
by Otto Dargan
Fri Oct 25, 2019 11:20 am
Forum: Home Loan Forum
Topic: What are the options for a first home buyer intending to borrow 100%?
Replies: 5
Views: 84521

Re: What are the options for a first home buyer intending to borrow 100%?

Hi Chanda,

A guarantor can be removed from your home loan once your loan to value ratio reaches 80%. You will need to get a loan guarantor release from the lender, if not the guarantor will stay for the life of your loan.

Once the guarantor is removed, you can refinance your home loan and you can:
  • Save thousands by not having to pay Lenders Mortgage Insurance (LMI).
  • You can qualify for lower interest rates.
  • It’s a hassle-free process with less paperwork.
Therefore, it’s good to remove a guarantor once your LVR is at 80% and below.

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a guarantor home loan.

Cheers,