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by Otto Dargan
Wed Oct 23, 2019 7:07 pm
Forum: Home Loan Forum
Topic: What are the options for a first home buyer intending to borrow 100%?
Replies: 5
Views: 84568

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

Hi Chanda,

It should not be an issue if your parents have sufficient equity in their property.

The lender will assess both your parents’ current home loan and how much limited guarantee they’ll be taking on for your home loan.

For example, if your parents have $100,000 owing on their home loan and they’re providing you a guarantee of $100,000, then their total debt secured on their property is $200,000.

Therefore, their home must be valued at $267,000 and above in order for the guarantor loan to be approved.

You can also use our guarantor loan calculator for more details.

Cheers,
by Otto Dargan
Wed Oct 23, 2019 6:50 pm
Forum: Home Loan Forum
Topic: What are the options for a first home buyer intending to borrow 100%?
Replies: 5
Views: 84568

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

Hello Chanda. Welcome to the forums.

If your parents own their property, then the best option might be to go for a guarantor home loan. Using a guarantor, you can borrow up to 105% of the property value and even cover the costs of purchasing a property.

If a guarantor is not a viable option, then there are 95% home loans available, but the servicing criteria for these types of loan are quite strict. Lenders require a minimum deposit of at least 5% of the property value. You might even be eligible for a First Home Owners Grant (FHOG) which can be a part of your deposit. You can even opt for a gifted deposit from your parents as well.

We have a lender on our panel that allows you to borrow 100% without having a guarantor and needing to pay LMI if you’re an eligible industry professional, however, the interest rates are higher and the lending criteria are more strict.

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

Cheers,
by Otto Dargan
Tue Oct 22, 2019 7:30 pm
Forum: Home Loan Forum
Topic: Does having a larger deposit mean I can reduce stamp duty?
Replies: 5
Views: 171704

Re: Does having a larger deposit mean I can reduce stamp duty?

Hi Zanele,

Not necessarily!

The amount of interest charged does not depend on your visa. If you can show that you’re a strong borrower, you might get the same interest rates as an Australian citizen. To increase your chances of approval and getting competitive interest rates, you should:
  • Have at least 12 months remaining on your visa before applying.
  • Have most of your savings in Australia.
  • Have a stable job in a sought after profession.
  • Have a clean credit history.
  • Save a larger deposit.
Give us a call on 1300 889 743 or fill in our free assessment form to get a competitive interest rate on your mortgage.
by Otto Dargan
Tue Oct 22, 2019 7:03 pm
Forum: Home Loan Forum
Topic: Does having a larger deposit mean I can reduce stamp duty?
Replies: 5
Views: 171704

Re: Does having a larger deposit mean I can reduce stamp duty?

Hi Zanele,

Under TSS Visa, the amount you can borrow depends on which stream you are working in:
  • For a 4 years stream (Medium-term or MLTSSL), you can borrow up to 90% of the property value with some of our lenders.
  • For 1 - 2 years (Short-term of STSOL) you can borrow up to 80% of the property value.
  • If you’re married or in a de facto relationship with an Australian or permanent resident, then you can borrow up to 95% of the property value.
  • If your visa is close to expiration, then you will only get limited lenders. You must have at least 12 months remaining on your visa.
Cheers,
by Otto Dargan
Tue Oct 22, 2019 6:41 pm
Forum: Home Loan Forum
Topic: Does having a larger deposit mean I can reduce stamp duty?
Replies: 5
Views: 171704

Re: Does having a larger deposit mean I can reduce stamp duty?

Hello Zanele. Welcome to the forums.

No, the amount of stamp duty you pay is not dependent on the size of your deposit. The amount of stamp duty paid depends on the value of your property, which state or territory you are buying your property and type of property you buy.

You can use our stamp duty calculator to find out how much you will need to pay.

However, having a deposit of more than 20% means that you save thousands by not having to pay Lenders Mortgage Insurance, but you still have to get approval from the Foreign Investment Review Board. For a property worth $1 million, the FIRB fees will be $5,700.

We specialise in temporary resident home loans.

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

Cheers,
by Otto Dargan
Mon Oct 21, 2019 9:15 pm
Forum: Home Loan Forum
Topic: How do lenders view seasonal income?
Replies: 5
Views: 70830

Re: How do lenders view seasonal income?

Hi Simone,

The biggest ticket costs associated with purchasing a property is stamp duty which is waived off in Northern Territory (NT). Still, there are other costs involved such as:
  • Mortgage registration fee: Government fee for registering your lender’s mortgage on the title. For a $380,000 property in NT, this will be around $149.
  • Transfer fee: $149.
  • Conveyancing fee: You’ll need to hire a conveyancer/ solicitor to handle the transfer the property into your name.
  • Inspections: These can cost up to $600 in total.
  • Loan fees: These fees can vary between $0 and $900.
  • Lenders Mortgage Insurance: When you’re borrowing over 80% of the property value, LMI applies. In your case, LMI can be anywhere between $6,366-$7561. You can use our LMI calculator to work out your LMI fee.
If you’re a first home buyer and building or buying a new property you may qualify for NT’s First Home Owners Grant of $10,000.

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
Mon Oct 21, 2019 6:01 pm
Forum: Home Loan Forum
Topic: How do lenders view seasonal income?
Replies: 5
Views: 70830

Re: How do lenders view seasonal income?

Hi Simone,

There are two things to consider when calculating how much you can borrow:
  • Loan to value ratio (LVR): The maximum LVR a couple of our lenders are willing to lend to seasonal workers is 90% of the property value. So, your deposit should cover it. If you can come up with a bigger deposit say 20%, you’ll have more choice in lenders.
  • Borrowing power: With a $55,000 annual income, the maximum you can borrow is around $330,000. That is by choosing the right lender and amending your loan structure. The key is to apply with the right lender.
These are just estimates, we’ll have to do a full assessment to work out how much you can actually borrow.
Cheers,
by Otto Dargan
Mon Oct 21, 2019 12:13 pm
Forum: Home Loan Forum
Topic: How do lenders view seasonal income?
Replies: 5
Views: 70830

Re: How do lenders view seasonal income?

Hello Simone. Welcome to the forums.

Lenders consider someone in temporary/ seasonal employment a higher risk than someone in a full-time permanent position.

Seasonal workers will need to establish a reliable income with evidence that you’ve worked for the same employer for the past two years even if it’s for only part of the year. A letter from your employer that indicates you’ll be hired the next season will be required.
Seasonal or temporary workers who have a stable situation usually have an excellent chance of approval. Unfortunately, if we can’t establish a stable income then there’s little chance of approval.

In order to verify your income, you’ll need to provide:
  • Two years’ tax returns or recent payslips.
  • Letter from your employer.
Our mortgage brokers specialise in unusual employment home loans.

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
Mon Oct 21, 2019 12:10 pm
Forum: Home Loan Forum
Topic: HSBC won’t do a construction loan - Need a house and land package
Replies: 2
Views: 62968

Re: HSBC won’t do a construction loan - Need a house and land package

Hi Roxy,

We would recommend getting pre-approved for the vacant land loan before putting in the deposit on the land.

Prior to the commencement of construction, the banks will want to see the following documents:
  • Signed building contract
  • Council approved plans
  • Construction certificate (NSW)
  • Builders insurance (certificate of currency)
  • Builders indemnity / Public Risk Insurance (Minimum insurance amount of $5 million for most lenders)
Send these documents at least 2 weeks prior to when you begin to start building to account for the bank’s processing.

Completing a build on time and on a budget can be really hard. Let one of our construction loan specialists guide you through the entire process from pre-approved to getting the keys to your house.

Give us a call on 1300 889 743 or fill in our short free assessment form to get started.
Cheers,
by Otto Dargan
Fri Oct 18, 2019 7:58 pm
Forum: Home Loan Forum
Topic: Will we be eligible for a home loan when we have worked for less than 6 months?
Replies: 5
Views: 71063

Re: Will we be eligible for a home loan when we have worked for less than 6 months?

Hi Delora,

Most banks and lenders require 5% of the property value ($34,000) but to avoid Lenders Mortgage Insurance (LMI), it is best to save 20% of the property value ($136,000).

Besides deposit, banks and lenders will also look into the following factors:
  • Ideally, applicants must be in their current job for 6 months, but lenders will assess this on a case by case basis for strong applicants.
  • A clean credit file and credit history are ideal. You can even get a free copy of your credit file for more details. Make sure to pay off existing debts and do not apply for unnecessary credit cards or enquire about loans 12 months prior to your mortgage application.
  • Lenders are conservative when it comes to approving loans to unusual properties.
  • Your asset position should align with your age and income.
  • A good repayment history is a great indication that the applicant will be able to make repayments on his/her mortgage as well.
If you fulfil the above criteria, then the chances of getting your home loan approved are much higher. However, if there are any problems, then you can still get approval with specialist lenders as well.

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 18, 2019 7:45 pm
Forum: Home Loan Forum
Topic: Will we be eligible for a home loan when we have worked for less than 6 months?
Replies: 5
Views: 71063

Re: Will we be eligible for a home loan when we have worked for less than 6 months?

Hi Delora,

Depending on whether your partner has been making regular and timely repayments on the car loan, it could either positively or negatively affect your credit score.

Getting a car loan will automatically leave on an enquiry on your partner’s credit file. However, with Comprehensive Credit Reporting adopted by the major banks and lenders, they will look favourably look at applicants who have been making timely repayments on their loans.

If your partner has been making timely repayments on the car loan, then this could strengthen the home loan application.

Cheers,
by Otto Dargan
Fri Oct 18, 2019 7:34 pm
Forum: Home Loan Forum
Topic: Will we be eligible for a home loan when we have worked for less than 6 months?
Replies: 5
Views: 71063

Re: Will we be eligible for a home loan when we have worked for less than 6 months?

Hello Delora. Welcome to the forums.

You might be able to get a home loan approved, even when you are on probation.

The applicant’s employment status is a crucial factor that banks and lenders will scrutinize to understand the risk posed by the applicant. Your employment and income stability forms a huge part of a credit score that is given to the applicant. So, lenders and banks will look into:
  • The length of time in your current job.
  • The length of time in the industry (study included).
  • The tendency of people to default on their mortgages.
  • Employment status (full time, part-time, etc)
  • The stability of your income (casual, overtime, bonus, etc).
  • Your reliance on unstable income.
Therefore, even when you’re on probation, your chances of home loan approval are higher especially if you’ve been working in the same industry. While most lenders at least want the applicant to be in the job for at least 6 months, we have lenders on our panel who will accept applicants who have been working for at least a month.

The underlying factor is that you and your partner must be able to show evidence of your income. This can come in the form of payslips, group certificates, a letter from your employer or even bank statements.

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

Cheers,
by Otto Dargan
Fri Oct 18, 2019 7:14 pm
Forum: Home Loan Forum
Topic: HSBC won’t do a construction loan - Need a house and land package
Replies: 2
Views: 62968

Re: HSBC won’t do a construction loan - Need a house and land package

Hi Roxy,

Drawdown or construction progress payment request is different stages of construction which once completed the bank will only then release the funds to the builder. The lender will release the first drawdown when certain requirements are met, such as when you provide them with council approved plans, insurances and building specifications unique to each stage.

The stages of construction are:
  • Clearing of the site
  • The slab or base stage
  • Frame stage
  • Lockup stage
  • Fit-out or fixing stage
  • Practical completion stage
It’s almost always a good idea to have extra funds on standby in order to keep the construction moving forward. Banks are atrociously inflexible on changes or variation that may arise.

Cheers,
by Otto Dargan
Fri Oct 18, 2019 6:52 pm
Forum: Home Loan Forum
Topic: HSBC won’t do a construction loan - Need a house and land package
Replies: 2
Views: 62968

Re: HSBC won’t do a construction loan - Need a house and land package

Hello Roxy. Welcome to the forums.

HSBC historically haven’t been great at construction loans and it looks like they’ve now completely stopped offering them altogether. However, there are a few lenders on our panel who’re great at this who can help you with a house and land package loan.

The first part would be buying the vacant land which is very similar to a standard home loan. You’ll be able to borrow up to 95% of the land value. Generally, 5% to 10% must be paid out to the vendor.

Then you can apply for a construction loan. The loan amount will be based on the lower of the bank’s “on completion valuation” and the cost stipulated in the building contract. Generally speaking, 5% of the total building cost is paid out to the builder up front.

You’ll need to have a signed building contract or tender/ plan specifications and a drawdown schedule. The best part is we’ll roll the land into the construction loan and that means interest-only repayment at principal and interest rate (owner-occupier) during the construction phase. In addition, you’ll only pay interest on the actual amount drawn down.

The key is to apply with the right lender that suits your needs. We have almost 40 lenders to choose from.

Speak with one of our specialist mortgage brokers by giving us a call on 1300 889 743 or by filling in our free assessment form to find out if you qualify for a land plus construction loan.

Cheers,
by Otto Dargan
Wed Oct 16, 2019 8:17 pm
Forum: Home Loan Forum
Topic: Would lenders accept an applicant on Bridging Visa?
Replies: 5
Views: 70166

Re: Would lenders accept an applicant on Bridging Visa?

Yes, as long as he meets the eligibility criteria for a First Home Owners Grant (FHOG), then he can receive the grant.

The eligibility criteria for the grant are:
  • At least one applicant is a citizen or a Permanent Resident
  • Neither applicant has owned a residential property in Australia before 1 July 2000.
  • There is a threshold on the value of the property (which varies between states).
  • This is the first time either applicant is receiving the grant.
  • Either of you must occupy the residence for at least six months after getting the grant approved.
We can help you with your FHOG application so that there are no errors to ensure that you get your home loan approved faster.

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,