The majority of lenders cannot accept Austudy income as it will not continue when you complete your studies. Personally I think this lacks a little common sense as if you are not receiving Austudy then you will be working!
As long as you are borrowing up to 60% of the property value it should be quite easy to get you a loan with a major lender as no income evidence would be required. Borrowing up to 80% with no payslips is possible however it would require a letter from your employer to confirm your income and it must be enough to service the debt.
The purpose of the loan is also important. If you own a property outright then what do you need the funds for? Lenders will be happy to help you renovate, buy shares or another investment property however are unlikely to assist if you cannot provide some kind of evidence of what you will do with the money.
Search found 7730 matches
- Wed Mar 31, 2010 8:05 am
- Forum: Home Loan Forum
- Topic: What are my options?
- Replies: 1
- Views: 6840
- Tue Mar 30, 2010 12:30 pm
- Forum: Home Loan Forum
- Topic: Studio
- Replies: 3
- Views: 9449
Re: Studio
Hi Tom,
Yes the areas you are looking at are considered "high density" / "inner city" by some lenders and not by others. If you are borrowing 80% then you should be fine.
If you need to do work to the unit such as renovations then there are two methods you can use to fund this:
1. Use a guarantor loan and borrow over 80% of the property value. When the renovations are complete you can then ask the bank to revalue the unit and if the loan is for less than 80% of the renovated unit value then the guarantee can usually be removed right away. No LMI would be payable. There is no minimum term for the guarantee, you just have to owe less than 80% of the property value.
2. You can get a tender from a licensed builder to complete the work to your unit. Ideally you should do this right away after a price is agreed for the unit AND ask for an extra two weeks for settlement so that you can get it all organised in the one go. The bank can then lend 80% of the unit value plus cost of construction.
Yes the areas you are looking at are considered "high density" / "inner city" by some lenders and not by others. If you are borrowing 80% then you should be fine.
If you need to do work to the unit such as renovations then there are two methods you can use to fund this:
1. Use a guarantor loan and borrow over 80% of the property value. When the renovations are complete you can then ask the bank to revalue the unit and if the loan is for less than 80% of the renovated unit value then the guarantee can usually be removed right away. No LMI would be payable. There is no minimum term for the guarantee, you just have to owe less than 80% of the property value.
2. You can get a tender from a licensed builder to complete the work to your unit. Ideally you should do this right away after a price is agreed for the unit AND ask for an extra two weeks for settlement so that you can get it all organised in the one go. The bank can then lend 80% of the unit value plus cost of construction.
- Sat Mar 27, 2010 9:23 pm
- Forum: Home Loan Forum
- Topic: Self employed refinance
- Replies: 5
- Views: 12254
Re: Self employed refinance
There are some new low doc refinance loans available now that have lower rates and less restrictive criteria (no bas, no business bank statements etc). The main catch is that you need to prove what you are using the funds for.
- Sat Mar 27, 2010 9:20 pm
- Forum: Home Loan Forum
- Topic: Mortgage required for overseas investment buyer
- Replies: 3
- Views: 8782
Re: Mortgage required for overseas investment buyer
Usually in these situations we would obtain all of your info and then give you a credit opinion rather than sending an application to a lender. The approval expires anyway during that time. If you would like to speak to our non-resident specialist then please call us on +61 2 8668 4038 during business hours Sydney time or enquire online and one of our brokers will call you back at a time convenient to you.
- Sat Mar 27, 2010 9:18 pm
- Forum: Home Loan Forum
- Topic: Studio
- Replies: 3
- Views: 9449
Re: Studio
Hi Tom,
For units under 40m2 in the CBD the maximum LVR is 80%. Between 40m2 and 50m2 we can get 90% on a case by case basis depending on the location, size of the block and overall strength of the borrower (income / assets etc). Over 50m2 inner city units can be funded up to 90% without too many problems using a few select lenders.
What suburb / postcode are you looking to buy in? Can you consider a guarantor loan (security guarantee) as this will allow you to borrow 100%?
For units under 40m2 in the CBD the maximum LVR is 80%. Between 40m2 and 50m2 we can get 90% on a case by case basis depending on the location, size of the block and overall strength of the borrower (income / assets etc). Over 50m2 inner city units can be funded up to 90% without too many problems using a few select lenders.
What suburb / postcode are you looking to buy in? Can you consider a guarantor loan (security guarantee) as this will allow you to borrow 100%?
- Tue Mar 23, 2010 3:50 pm
- Forum: Home Loan Forum
- Topic: Mortgage required for overseas investment buyer
- Replies: 3
- Views: 8782
Re: Mortgage required for overseas investment buyer
Hi Paul,
As a foreign citizen living outside of Australia you can still apply for a non-resident investment loan. Indicatively if the rent income in Australia (from the new property), pension and overseas rent income are enough to service the debt then you should qualify for a loan of up to 80% of the property value. Note that as your situation is very complex we would really need to see the full details of your situation to be sure.
Loans for off the plan properties can only be arranged up to 3 months prior to settlement. If we arrange a loan now it will expire before settlement anyway.
Thanks
As a foreign citizen living outside of Australia you can still apply for a non-resident investment loan. Indicatively if the rent income in Australia (from the new property), pension and overseas rent income are enough to service the debt then you should qualify for a loan of up to 80% of the property value. Note that as your situation is very complex we would really need to see the full details of your situation to be sure.
Loans for off the plan properties can only be arranged up to 3 months prior to settlement. If we arrange a loan now it will expire before settlement anyway.
Thanks
- Mon Mar 22, 2010 2:45 pm
- Forum: Home Loan Forum
- Topic: Investment help
- Replies: 2
- Views: 9447
Re: Investment help
We could consider increasing your ING loan (to avoid exit fees / break fees) up to 90% of the property value. You could then use this money as a deposit to buy a new property.
Or we could refinance your ING loan if it worked out to be cheaper for LMI / interest rate to do so.
This means you could increase your loan up to $436,500 (assuming a $485,000 value) which would release $61,500 in equity. This would be sufficient for you to buy a property for around $400,000 with a 90% loan and pay for all costs such as stamp duty. We would need to see the full details of your situation to confirm if you can afford to buy an investment for $400,000, it may be that buying a smaller place is more appropriate for you.
Just to let you know mortgage brokers make more money by refinancing your loan. We do not believe in doing what is best for us, but rather we seek a win win solution. That is why we are always happy to consider doing loan increases instead where it is appropriate to do so.
Or we could refinance your ING loan if it worked out to be cheaper for LMI / interest rate to do so.
This means you could increase your loan up to $436,500 (assuming a $485,000 value) which would release $61,500 in equity. This would be sufficient for you to buy a property for around $400,000 with a 90% loan and pay for all costs such as stamp duty. We would need to see the full details of your situation to confirm if you can afford to buy an investment for $400,000, it may be that buying a smaller place is more appropriate for you.
Just to let you know mortgage brokers make more money by refinancing your loan. We do not believe in doing what is best for us, but rather we seek a win win solution. That is why we are always happy to consider doing loan increases instead where it is appropriate to do so.
- Sun Mar 21, 2010 5:25 pm
- Forum: Home Loan Forum
- Topic: home loan for discharged bankrupt
- Replies: 1
- Views: 6911
Re: home loan for discharged bankrupt
It may be possible if you have a guarantor to support your loan. Personally I believe it is unlikely unless you can get a larger deposit to reduce your loan down to 80% of the property value. Discharged bankrupts are looked upon very unfavourably by the Lender Mortgage Insurers so it is impossible to borrow over 80% without a guarantor.
- Sun Mar 21, 2010 5:23 pm
- Forum: Home Loan Forum
- Topic: Father and Son From Rental to Ownership - is this possible
- Replies: 1
- Views: 6434
Re: Father and Son From Rental to Ownership - is this possible
The problem that I can see is that if there is no savings and no guarantor available then it simply will not be possible. From a banks point of view there is a lack of security, you would be borrowing 100% of the property value. So unfortunately it is unlikely we can help.
- Fri Mar 19, 2010 3:03 pm
- Forum: Home Loan Forum
- Topic: 2 jobs and gifted deposit
- Replies: 3
- Views: 9740
Re: 2 jobs and gifted deposit
Most lenders will see right away that you are employed by your husband and will then ask for 2 years tax returns to prove your income. For this reason I would recommend that you call us to discuss in detail now so that you can apply in July without any problems.
Thanks
Thanks
- Fri Mar 19, 2010 7:09 am
- Forum: Home Loan Forum
- Topic: 2 jobs and gifted deposit
- Replies: 3
- Views: 9740
Re: 2 jobs and gifted deposit
Yes I believe we can help with your situation. There are a few possible problems however if we carefully choose what documents to provide to the lender then we should be able to get an approval without many hassles.
The main potential problems are:
* A gift can be accepted as genuine savings by some lenders if it is held for at least three months. It must be no less than three months, even a day less is not accepted.
* Your bank statements must match your payslips.
* I am assuming that the 2nd income is for the 2nd applicant and not for a 2nd job of the 1st applicant.
Overall it looks ok. We would create a shortlist of lenders that can help and then from there work out which ones have the cheapest overall loan taking fees, rate and LMI into account.
The main potential problems are:
* A gift can be accepted as genuine savings by some lenders if it is held for at least three months. It must be no less than three months, even a day less is not accepted.
* Your bank statements must match your payslips.
* I am assuming that the 2nd income is for the 2nd applicant and not for a 2nd job of the 1st applicant.
Overall it looks ok. We would create a shortlist of lenders that can help and then from there work out which ones have the cheapest overall loan taking fees, rate and LMI into account.
- Tue Mar 16, 2010 10:40 am
- Forum: Home Loan Forum
- Topic: Self employed refinance
- Replies: 5
- Views: 12254
Re: Self employed refinance
Hi Dee,
That all sounds fine. I expect you may qualify for a prime loan at a rate in the range 6% to 6.5%. We would need to see the full details to be sure.
Thanks
That all sounds fine. I expect you may qualify for a prime loan at a rate in the range 6% to 6.5%. We would need to see the full details to be sure.
Thanks
- Tue Mar 16, 2010 7:37 am
- Forum: Home Loan Forum
- Topic: Self employed refinance
- Replies: 5
- Views: 12254
Re: Self employed refinance
Hi Dee,
If your income can be proven via tax returns then yes you can get a loan for 90% of the property value. You must have clear credit and a perfect repayment history on your existing loan otherwise refinancing will not be possible with a major lender.
Most self employed people are unaware that each bank assesses your income in a different way. Most either average two years tax returns, take 120% of the lower year or just use the lowest year. Added to this many bank employees cannot understand business financials as they have never run a business themselves.
We usually have a look at your two years financials and then work out from there how each lender would assess your income. In particular for your situation there are some lenders that just use the most recent years income rather than averaging it with previous years.
Assuming you can afford the loan and have clear credit then I believe we can help you. Please call us on 1300 889 743 for more info.
If your income can be proven via tax returns then yes you can get a loan for 90% of the property value. You must have clear credit and a perfect repayment history on your existing loan otherwise refinancing will not be possible with a major lender.
Most self employed people are unaware that each bank assesses your income in a different way. Most either average two years tax returns, take 120% of the lower year or just use the lowest year. Added to this many bank employees cannot understand business financials as they have never run a business themselves.
We usually have a look at your two years financials and then work out from there how each lender would assess your income. In particular for your situation there are some lenders that just use the most recent years income rather than averaging it with previous years.
Assuming you can afford the loan and have clear credit then I believe we can help you. Please call us on 1300 889 743 for more info.
- Mon Mar 15, 2010 8:51 am
- Forum: Home Loan Forum
- Topic: Stamp duty first home buyers
- Replies: 1
- Views: 6357
Re: Stamp duty first home buyers
Sometimes you can borrow to pay for the stamp duty and costs of buying a property as well. If you have a sizeable deposit OR you are applying for a guarantor home loan then there is no problem. If you have a small deposit then normally this is not possible.
- Mon Mar 15, 2010 7:29 am
- Forum: Home Loan Forum
- Topic: guarantor loans
- Replies: 1
- Views: 6495
Re: guarantor loans
Yes it looks like you would qualify for either a 90% or 95% without a guarantor OR guarantor loan (up to 100%).
If you go for a guarantor loan then your lender would take a 2nd mortgage behind your parent's existing loans. This is not available from many lenders and can often be complicated when many properties are involved. Many people in our industry do not understand how to setup a 2nd mortgage when there are multiple properties involved, so would prefer to push you towards a 95% loan.
For a 90% loan for $300,000 you are likely to pay $3,000 to $4,000 in LMI. For a 95% loan for $300,000 you are likely to pay $6,000 to $7,000. This can vary depending on the lender and the loan amount. In particular Westpac, ANZ and St George have very expensive LMI. It is a once off fee, not an annual ongoing fee. If you would like to work out your premium then use our free LMI Calculator.
I'd recommend that you call us on 1300 889 743 and speak to one of our brokers. They can then give you specific recommendations based on your full situation.
If you go for a guarantor loan then your lender would take a 2nd mortgage behind your parent's existing loans. This is not available from many lenders and can often be complicated when many properties are involved. Many people in our industry do not understand how to setup a 2nd mortgage when there are multiple properties involved, so would prefer to push you towards a 95% loan.
For a 90% loan for $300,000 you are likely to pay $3,000 to $4,000 in LMI. For a 95% loan for $300,000 you are likely to pay $6,000 to $7,000. This can vary depending on the lender and the loan amount. In particular Westpac, ANZ and St George have very expensive LMI. It is a once off fee, not an annual ongoing fee. If you would like to work out your premium then use our free LMI Calculator.
I'd recommend that you call us on 1300 889 743 and speak to one of our brokers. They can then give you specific recommendations based on your full situation.