Search found 7730 matches

by Otto Dargan
Fri Sep 20, 2019 7:26 pm
Forum: Home Loan Forum
Topic: What is a parent assist home loan? How does it differ from a guarantor home loan?
Replies: 5
Views: 67810

Re: What is a parent assist home loan? How does it differ from a guarantor home loan?

Hello Lucille. Welcome to the forums.

A parent assist home loan is where your parents provide you with a loan of up to 20% of the property value. Essentially, you’re borrowing money from your parents, but it is not a gifted deposit as you would need to pay them back with interest.

By doing so, you avoid the cost of paying Lenders Mortgage Insurance (LMI) and the best part is you and your parents get to decide on the interest rate, which can be less than 1% p.a.

You and your parents will have to get an independent legal and financial advice before moving forward with this loan. Once all parties have done that, you will need to enter a legal binding agreement that will be overseen by a solicitor.

Parent assist home loans differ from guarantor home loans because your mom and dad are not putting their home as security to finance your home loan. This means that if your parents do not own property, they can still help you finance your home loan under the parent assist home loan scheme.

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

Cheers,
by Otto Dargan
Thu Sep 19, 2019 9:21 pm
Forum: Home Loan Forum
Topic: Can I get a home loan with only $5,000 deposit?
Replies: 5
Views: 67857

Re: Can I get a home loan with only $5,000 deposit?

Hi Camden,

These are the factors lenders will look into when you have a guarantor on your home loan:

Your parents should have a stable income and good credit history so lenders are assured that they can make repayments on the mortgage.
The guarantor’s property must be in Australia.

The guarantor must be an Australian citizen or permanent resident, but some lenders accept overseas guarantor.

The age of the guarantor must be above 18 years old and typically under 65 years old. Retired guarantors are accepted, but this is looked into on a case by case basis.

We are mortgage brokers who specialise in guarantor supported 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 with a guarantor.

Cheers,
by Otto Dargan
Thu Sep 19, 2019 8:51 pm
Forum: Home Loan Forum
Topic: Can I get a home loan with only $5,000 deposit?
Replies: 5
Views: 67857

Re: Can I get a home loan with only $5,000 deposit?

Hi Camden,

Your parents might still be able to help you if they have enough equity remaining on their home loan. Some lenders will allow your parents to secure a guarantee on their property with a second mortgage.

Lenders will look into the total debt secured on your parents’ property to calculate how if they have enough equity in their property. Generally, their current home loan and the new limited guarantee must be less than 80% of the property value.

For example, if your parents have a home loan with $150,000 owing and they have agreed to provide you a limited guarantee of $100,000, then the total debt secured on their property is $250,000. Their property must be worth above $250,000 for the guarantor loan to be approved.

Furthermore, your parents should not apply to be a guarantee when they already have a home loan unless:
  • The consent for the second mortgage is granted.
  • A bank valuation is performed on your parents’ property.
  • The lender has issued formal approval.
You can use our guarantor loan calculator for more information.

Cheers,
by Otto Dargan
Thu Sep 19, 2019 8:37 pm
Forum: Home Loan Forum
Topic: Can I get a home loan with only $5,000 deposit?
Replies: 5
Views: 67857

Re: Can I get a home loan with only $5,000 deposit?

Hello Camden. Welcome to the forums.

Thank you for reaching out to us.

As a general rule, a minimum of at least 5% of the property value is needed as a deposit as well as additional funds to cover the purchasing costs like stamp duty, conveyancing, etc.

Unfortunately, a $5,000 deposit is not enough deposit for a property worth $450,000. A minimum of at least $22,500 is required.

There are some easy strategies you can use to save for a larger deposit for your home loan:
  • Set up savings short, medium and long term goals and review your progress.
  • Take a close look into your income and expenses and know where you can cut down on your expenses.
  • Start off by saving small and progressively saving more and more each week or month.
If you are not able to save money on your own, then you can take the help of your parents and take out a guarantor home loan or asking them for a gifted 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
Wed Sep 18, 2019 8:26 pm
Forum: Home Loan Forum
Topic: Partner has good credit and I have bad credit. Can we still get a mortgage?
Replies: 5
Views: 76274

Re: Partner has good credit and I have bad credit. Can we still get a mortgage?

Hi Tricia,

Some other tips to improve your credit score are:
  • Do not overdraw your cheque account.
  • Pay all your bills on time.
  • Do not apply for a new credit card
  • Try your best to pay off your debts on time.
  • Pay any defaults on your credit file as soon as possible instead of waiting for them to be removed.
  • Don’t apply for loans that you don’t require as this would create an enquiry on your credit file.
  • Open a savings account and try to save as much as you can.
It takes time and a lot of effort for your credit score to improve. However, enquiries older than 12 months do not affect your credit score.

To see if your credit score has improved, you can get a free copy of your credit report once a year from three Credit Reporting Agencies.

Speak to our mortgage brokers and we can help you find a lender that is lenient towards your situation.

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 Sep 18, 2019 8:01 pm
Forum: Home Loan Forum
Topic: Partner has good credit and I have bad credit. Can we still get a mortgage?
Replies: 5
Views: 76274

Re: Partner has good credit and I have bad credit. Can we still get a mortgage?

Hi Tricia,

There are many options you can choose from when a partner has bad credit when you’re applying for a home loan:
  • Your husband could apply as the sole applicant but this would mean that only his income will be serviced and only his name will be on the property title.
  • A common debt reducer home loan (CDR) is where there is only one applicant but the CDR allows the use of reduced living expenses and shared debts for servicing the loan as long as the non-borrower can evidence self-supporting income.
  • Another option is to have two people on the property title and only your husband’s name on the mortgage, commonly known as one borrower, two owners.
  • You can opt to apply with lenders that accept deal with bad credit home loans. Depending on your situation and reasons for bad credit, you might have to pay higher interest rates.
  • If none of these options works for you, then you might wait for the credit file to be clear of any adverse listings and improve your credit score. In the meantime, you and your husband could work towards saving a larger deposit.
Cheers
by Otto Dargan
Wed Sep 18, 2019 7:35 pm
Forum: Home Loan Forum
Topic: Partner has good credit and I have bad credit. Can we still get a mortgage?
Replies: 5
Views: 76274

Re: Partner has good credit and I have bad credit. Can we still get a mortgage?

Hello Tricia. Welcome to the forums.

Thank you for reaching out to us.

Yes, you can still move forward with getting a home loan even when your partner has with bad credit.

However, if you have too many credit enquiries on your credit file, then you can be seen as a high-risk borrower.

In most cases, most major lenders prefer it if you have less than two enquiries over the last six months. There are some lenders who are stricter and will ask for explanations as to why the enquiry is on your credit file in the last two years.

The reason you provide to the lender is a determining factor on whether your home loan will be accepted or not.

Our mortgage brokers have worked at credit departments of many banks and specialist lenders so they understand exactly how lenders assess bad credit home loan applications like yours.

We work with specialist lenders who offer competitive bad credit 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, even with bad credit.

Cheers,
by Otto Dargan
Wed Sep 18, 2019 12:10 pm
Forum: Home Loan Forum
Topic: How is DTI calculated? DTI and LTI - What's the difference?
Replies: 5
Views: 71746

Re: How is DTI calculated? DTI and LTI - What's the difference?

Hi Anwar,

Yes, personal and business loans for sole traders will need to be included in the DTI calculations.

In addition, for revolving credit such as credit cards and overdraft, the full limit is to be used irrespective of the balance.

So say you have a $10,000 cc with $1,000 balance (used) and an overdraft facility with a $20,000 limit which you haven’t utilised yet. Regardless, for the DTI calculation, the full $30,000 will be used as your debt.

We recommend you speak with one of our mortgage brokers before submitting your home loan application as they are credit experts and not just salesmen.
With almost 40 lenders on our panel, we can work with you to get you the amount you need.

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
Tue Sep 17, 2019 8:59 pm
Forum: Home Loan Forum
Topic: How is DTI calculated? DTI and LTI - What's the difference?
Replies: 5
Views: 71746

Re: How is DTI calculated? DTI and LTI - What's the difference?

Hi Anwar,

For self-employed borrowers, the income to be used for the DTI calculations is net profit before tax after acceptable add-backs. Yes, you can use the full gross (unshaded) rental and dividend income before tax.

As for the liabilities part for the DTI calculation, the total of all loans including the new loan are to be used. Examples of debt to include are home loans, personal loans, credit cards, overdraft, tax debts etc.

Only contingent liabilities are excluded such as:
  • HECS/ HELP debts
  • Lease and hire purchases
  • Company, partnership and trust liabilities.
Contingent liabilities are excluded.

Cheers,
by Otto Dargan
Tue Sep 17, 2019 8:22 pm
Forum: Home Loan Forum
Topic: How is DTI calculated? DTI and LTI - What's the difference?
Replies: 5
Views: 71746

Re: How is DTI calculated? DTI and LTI - What's the difference?

Hello Anwar. Welcome to the forums.

Debt-to-income (DTI) ratio is a borrower’s total debt divided by their total income.
DTI ratio is calculated as follows: total debt (including the new loan limit) / total income = DTI ratio

For example, 400,000/ 80,000 = The DTI ratio is 5.

A DTI ratio of six or higher is considered higher risk and your application will be declined or scrutinised closely.

The DTI ratio gives a clear understanding of a borrower’s complete financial picture whereas, a loan-to-income ratio (LTI) assesses a customer’s ability to manage their home loan only.

LTI is calculated as the total home loan requested in the application divided by their gross (before tax) annual income.
For example, if you were looking for a $200,000 loan with a $50,000 income, the LTI ratio will be 4. Both metrics play a role in a bank’s assessment of your loan application.

Do you have a high DTI ratio?
Our mortgage brokers are credit experts and are up to date on the credit policies of almost 40 lenders on our panel.
We can help if you have a high DTI.

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 with a high DTI ratio.

Cheers,
by Otto Dargan
Tue Sep 17, 2019 8:16 pm
Forum: Home Loan Forum
Topic: Loan for second property
Replies: 1
Views: 54238

Re: Loan for second property

Hi Jason, welcome to the forum.

Based on what you’ve mentioned so far, yes you can borrow the full purchase price plus costs to complete the purchase without paying Lenders Mortgage Insurance (LMI) fees. Avoiding LMI can save you tens of thousands of dollars.

There are some great interest rates on offer currently, in fact, some of our lenders are offering rates lower than 3% p.a. We can’t exactly give you an interest rate quote without a full assessment but you can check out the special interest rates currently on offer.

In addition, some lenders are also offering $2,000 refinance cashback/ rebates per property.

Since LMI is only applicable when borrowing more than 80% of the property value, you can access up to $1.19 million (80% less your current mortgage balance of $255,000) without paying LMI.

To be clear, you’ll only need enough to cover the 20% deposit to bring the loan to value ratio (LVR) below 80% on the new purchase but having a bigger deposit means you qualify for better interest rates.

The biggest purchasing cost is the stamp duty which you can calculate using our stamp duty calculator here.

We have almost 40 lenders on our panel and award-winning mortgage brokers who are credit experts, so you can rest assured knowing you’re getting the best deal based on your situation.

Give us a call today on 1300 889 743 or fill in our online assessment form to find out if you qualify for these interest rates.
by Otto Dargan
Tue Sep 17, 2019 8:13 pm
Forum: Home Loan Forum
Topic: What is the First Home Loan Deposit Scheme and how does it benefit first home buyers?
Replies: 5
Views: 66920

Re: What is the First Home Loan Deposit Scheme and how does it benefit first home buyers?

Hi James,

You can keep updated on our page on First Home Loan Deposit Scheme which will be updated with the latest information as it comes.

Yes, there are ways you can increase your chances of loan approval which constitutes the normal bank lending criteria:
  • Be employed in the current job for more than 6 months.
  • Show that you have good credit history by paying off any outstanding debts before applying for a home loan.
  • Lenders like to see that you have genuine savings saved up, so if possible, set up a separate account and make regular contributions to the account.
  • There are restrictions on the property you can buy. You are likely to get approved if you're buying a property in a prime location or a unit with over 50m2 internal area.
  • Your asset position should match your age and income.
  • Make sure you are making regular repayments on any personal loans or credit cards that you have taken out. Even making timely payments on your rent is one of the indicators that you are a good borrower.
You can even use our borrowing power calculator that takes your income and expenditure figures to give you an accurate indication of how much you can afford to borrow.

You do not have to wait for the scheme to come into effect to buy your first home. Speak with our specialist mortgage brokers and we can provide you with the best options for your 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
Tue Sep 17, 2019 7:46 pm
Forum: Home Loan Forum
Topic: What is the First Home Loan Deposit Scheme and how does it benefit first home buyers?
Replies: 5
Views: 66920

Re: What is the First Home Loan Deposit Scheme and how does it benefit first home buyers?

Hi James,

While information regarding the eligibility and qualification of the scheme has not been fully-fledged out at the time of writing this, it has been confirmed that:
  • The First Home Loan Deposit Scheme will only be available to 10,000 first home buyers in a year.
  • It will be given out on a first-come, first-serve basis.
  • If you’re a single home buyer, you have to be earning $125,000 p.a and for couples, it is $200,000 p.a.
  • The value of homes that can be purchased under the scheme will be determined on a regional basis, reflecting the different property markets.
The First Home Loan Deposit Scheme is based under New Zealand’s Welcome Home Loan. Please note that the scheme is not available for investment properties.

Cheers,
by Otto Dargan
Tue Sep 17, 2019 7:22 pm
Forum: Home Loan Forum
Topic: What is the First Home Loan Deposit Scheme and how does it benefit first home buyers?
Replies: 5
Views: 66920

Re: What is the First Home Loan Deposit Scheme and how does it benefit first home buyers?

Hello James. Welcome to the forums.

The First Home Loan Deposit Scheme is an initiative offered by the government to get first home buyers into the property market sooner, even with a smaller deposit.

Under the scheme, you would only need to save a 5% deposit of the property value without having to pay Lenders Mortgage Insurance (LMI), which could be a hefty fee levied for loans that are above 80% loan to value ratio.

For instance, if you are buying a property worth $650,000 and you only have $50,000 saved up, you could end up paying over $16,000 in LMI premium. So under this scheme, you would not have to pay this premium, even with a 5% deposit.

So, you would essentially be borrowing 95% of the property value without having to pay LMI.

The First Home Loan Deposit Scheme benefits first home buyers in the following ways:
  • First home buyers will be getting into the property market sooner, even with a smaller deposit.
  • You would save thousands of dollars without having to pay LMI.
  • Your savings would be used towards mortgage repayments rather than paying rent.
  • The First Home Loan Deposit Scheme can be used in tandem with other government concessions like the First Home Owners Grant (FHOG) and First Home Super Saver Scheme.
Please note that the First Home Loan Deposit Scheme will only come into effect from January 2020.

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 even with a low deposit.
by Otto Dargan
Mon Sep 16, 2019 8:25 pm
Forum: Home Loan Forum
Topic: Can I buy a second place and rent out my first property without providing deposit?
Replies: 5
Views: 67006

Re: Can I buy a second place and rent out my first property without providing deposit?

Hi Susan,

Negative gearing is when the rental income is less than your interest repayments and other expenses relating to the property; essentially, you're making a loss.

It is calculated by first deducting the costs for the property or cash operating expenses from the rental income you receive. This gives us your weekly cash flow. Then, we calculate the effect this will have on your taxable income and the amount of tax you would get back, depending on your tax rate.

You can use our negative gearing calculator for more details.

The main benefit from negative gearing is a tax deduction on your tax return as the loss can be deducted from your tax payable income when filing your tax returns.

Give us a call on 1300 889 743 or fill in our free assessment form. Our award-winning brokers are specialists in investment loans.

Cheers,