Search found 7730 matches
- Wed Feb 10, 2010 6:01 pm
- Forum: Home Loan Forum
- Topic: Employment Letter
- Replies: 5
- Views: 15291
Re: Employment Letter
That letter would be accepted by some lenders and rejected by others. Overall it is quite good. Certainly Westpac and St George would reject the letter however they are not good with contractors anyway so hopefully you are not applying with them. I'd strongly recommend that you give us a call because we do several loans for contractors every week at market leading rates, there are no fees for our services as we are paid by the banks. Applying for a loan and getting declined reduces your chances of getting a loan from another lender as it reduces your credit score significantly.
- Tue Feb 09, 2010 9:19 pm
- Forum: Home Loan Forum
- Topic: Employment Letter
- Replies: 5
- Views: 15291
Re: Employment Letter
The letter would need to come from the recruitment company as they are technically your employer, not the company that you are currently assigned to.
The best way to state your income on your employment letter is for example $50 / hour for 40 hours each week plus overtime as required. Lenders would then use 50 x 40 x 48 = $96,000. Any lender that knows what they are doing (and there are plenty that do not) will use 48 weeks income not 52 so as to allow for unpaid holidays / sick leave. it doesn't hurt to ask the employment agency to mention that "He is an excellent employee and we expect him to continue working with us for the foreseeable future".
If the letter does not confirm your employment status (e.g. Permanent / contract etc) then your bank may ask for another one. They can see on your payslips that there is no annual leave etc so they usually know right away that you are either employed as a casual or contract employee.
Be very careful! Many lenders do not like contractors at all and will decline your loan unless your employment contract has a minimum of 12 months to run. I would strongly recommend that you call me on 1300 889 743 to discuss this before you proceed. I'm here to help and if you are going with a lender that can help you then I will let you know. If not then I can assist you to apply with another lender.
The best way to state your income on your employment letter is for example $50 / hour for 40 hours each week plus overtime as required. Lenders would then use 50 x 40 x 48 = $96,000. Any lender that knows what they are doing (and there are plenty that do not) will use 48 weeks income not 52 so as to allow for unpaid holidays / sick leave. it doesn't hurt to ask the employment agency to mention that "He is an excellent employee and we expect him to continue working with us for the foreseeable future".
If the letter does not confirm your employment status (e.g. Permanent / contract etc) then your bank may ask for another one. They can see on your payslips that there is no annual leave etc so they usually know right away that you are either employed as a casual or contract employee.
Be very careful! Many lenders do not like contractors at all and will decline your loan unless your employment contract has a minimum of 12 months to run. I would strongly recommend that you call me on 1300 889 743 to discuss this before you proceed. I'm here to help and if you are going with a lender that can help you then I will let you know. If not then I can assist you to apply with another lender.
- Tue Feb 09, 2010 7:35 am
- Forum: Home Loan Forum
- Topic: US citizen with Australian non-resident wife
- Replies: 1
- Views: 6788
Re: US citizen with Australian non-resident wife
Hi Dylan,
Your situation should be no problem. You should be able to borrow up to 90% of the property value if you buy in both names. It should be quite simple buying in one name or two so you can choose whichever way you prefer. As an American Citizen married to an Australian Citizen living overseas you are seen as a low risk borrower.
Ideally you should aim to borrow 80% of the property value if you can as this will save you from paying lenders mortgage insurance.
Your situation should be no problem. You should be able to borrow up to 90% of the property value if you buy in both names. It should be quite simple buying in one name or two so you can choose whichever way you prefer. As an American Citizen married to an Australian Citizen living overseas you are seen as a low risk borrower.
Ideally you should aim to borrow 80% of the property value if you can as this will save you from paying lenders mortgage insurance.
- Mon Feb 08, 2010 3:47 pm
- Forum: Home Loan Forum
- Topic: No deposit loan?
- Replies: 5
- Views: 11794
Re: No deposit loan?
They would lend you a maximum of 90% of the property value. If the valuation came in good then $60k would be fine, if the valuation was low then they would decline the loan or reduce the amount.
- Fri Feb 05, 2010 5:22 pm
- Forum: Home Loan Forum
- Topic: Getting negatively geared tax benefits from a Family Trust
- Replies: 1
- Views: 6917
Re: Getting negatively geared tax benefits from a Family Trust
Sorry buddy I can't help with this one. You would need to talk to an accountant for tax advice for a family trust. I believe for a unit trust you can put the loan in your name but the property in the trust name and this can give you the benefit you seek. Speak to your accountant for the full details.
- Wed Feb 03, 2010 12:37 pm
- Forum: Home Loan Forum
- Topic: Purchase of an overseas property
- Replies: 1
- Views: 6691
Re: Purchase of an overseas property
Unfortunately this isn't something we can help with. You would need to approach a NZ lender. for assistance with this. We can help people living overseas to buy a property in Australia however we cannot use a property overseas as security for an Australian loan.
Thanks
Thanks
- Tue Feb 02, 2010 9:35 am
- Forum: Home Loan Forum
- Topic: %110 home loan
- Replies: 1
- Views: 6972
Re: %110 home loan
Hi Dan,
Sorry no lender can consider your situation. If you have a problem with your credit history then the maximum you can borrow is 90% and in most cases 80%. For a 110% guarantor loan you would need to have only minor credit problems (paid default <$1,000).
Thanks
Otto
Sorry no lender can consider your situation. If you have a problem with your credit history then the maximum you can borrow is 90% and in most cases 80%. For a 110% guarantor loan you would need to have only minor credit problems (paid default <$1,000).
Thanks
Otto
- Thu Jan 21, 2010 7:22 am
- Forum: Home Loan Forum
- Topic: home loans with partIX debt agreement
- Replies: 1
- Views: 6366
Re: home loans with partIX debt agreement
Hi Peta,
You may be able to get a loan when your Part IX has been paid off however you will need to have a minimum 10% deposit and ideally a little more. Non-conforming lenders will be able to assist however the major lenders will not help you, so you are very restricted as to how much you can borrow. It is highly unlikely that you can get a loan while still in your agreement unless you have a 20% + deposit.
To help you prepare to borrow in the future please do the following:
* Make all your Part IX payments on time and keep records of this.
* Pay your rent on time and keep records of this.
* Save a deposit in an ING Direct account (or some similar savings account). Try to make regular contributions of $50 / week +.
* Once you have paid off your Part IX then you will be able to prove your repayment history via your rent payments, Part IX payments and your ability to save will give strength to your application.
Thanks
You may be able to get a loan when your Part IX has been paid off however you will need to have a minimum 10% deposit and ideally a little more. Non-conforming lenders will be able to assist however the major lenders will not help you, so you are very restricted as to how much you can borrow. It is highly unlikely that you can get a loan while still in your agreement unless you have a 20% + deposit.
To help you prepare to borrow in the future please do the following:
* Make all your Part IX payments on time and keep records of this.
* Pay your rent on time and keep records of this.
* Save a deposit in an ING Direct account (or some similar savings account). Try to make regular contributions of $50 / week +.
* Once you have paid off your Part IX then you will be able to prove your repayment history via your rent payments, Part IX payments and your ability to save will give strength to your application.
Thanks
- Tue Jan 19, 2010 7:02 am
- Forum: Home Loan Forum
- Topic: Second mortgage
- Replies: 1
- Views: 6613
Re: Second mortgage
Very few if any lenders will accept this type of loan at a good rate as with a 2nd mortgage the new lender is taking the majority of the risk however receives very little of the interest. For that reason it is primarily private lenders that charge 2% to 6% per month that operate in the 2nd mortgage space.
- Mon Jan 18, 2010 11:16 am
- Forum: Home Loan Forum
- Topic: No deposit loan?
- Replies: 5
- Views: 11794
Re: No deposit loan?
What your broker has told you is correct. The best option is likely to wait until you have more equity then to increase your Rams loan to help fund the deposit for the new property. On loan increases the Lenders Mortgage Insurance is usually much cheaper than for a refinance so best to stick with rams.
- Sun Jan 17, 2010 7:12 pm
- Forum: Home Loan Forum
- Topic: No deposit loan?
- Replies: 5
- Views: 11794
Re: No deposit loan?
Hi Stephan,
How much is your current property worth and which lender is your loan with? Once I know this then I can work it out for you.
How much is your current property worth and which lender is your loan with? Once I know this then I can work it out for you.
- Sun Jan 17, 2010 7:09 pm
- Forum: Home Loan Forum
- Topic: Investment Properties
- Replies: 1
- Views: 12770
Re: Investment Properties
Hi Gary,
You could increase your current loans up to 90% of the total property value to release funds to buy another investment. However because you would pay a significant amount of LMI and you have a large amount of credit card debt it probably isn't worth it for you to proceed. I would recommend that you approach your bank and ask them to consolidate your credit cards onto your current mortgage as this would save you a fortune.
You can also try our Investment Property Cashflow Calculator to help you predict the cashflow position of your next investment property and whether your property will be positively or negatively geared.
You could increase your current loans up to 90% of the total property value to release funds to buy another investment. However because you would pay a significant amount of LMI and you have a large amount of credit card debt it probably isn't worth it for you to proceed. I would recommend that you approach your bank and ask them to consolidate your credit cards onto your current mortgage as this would save you a fortune.
You can also try our Investment Property Cashflow Calculator to help you predict the cashflow position of your next investment property and whether your property will be positively or negatively geared.
- Mon Jan 11, 2010 3:58 pm
- Forum: Home Loan Forum
- Topic: guarantor loan with deposit
- Replies: 1
- Views: 6386
Re: guarantor loan with deposit
Hi Mel,
It is possible that you could borrow more with the guarantee as the size of your deposit is likely to be the limiting factor. With a guarantee the size of your deposit is less important.
The best way to structure the loan will depend on your brother's situation.
Are you a permanent resident / citizen?
It is possible that you could borrow more with the guarantee as the size of your deposit is likely to be the limiting factor. With a guarantee the size of your deposit is less important.
The best way to structure the loan will depend on your brother's situation.
Are you a permanent resident / citizen?
- Mon Jan 11, 2010 8:03 am
- Forum: Home Loan Forum
- Topic: Guarantor with retired parents
- Replies: 3
- Views: 9203
Re: Guarantor with retired parents
Hi Narelle,
I have emailed you further details.
Thanks
I have emailed you further details.
Thanks
- Sun Jan 10, 2010 11:03 am
- Forum: Home Loan Forum
- Topic: Guarantor with retired parents
- Replies: 3
- Views: 9203
Re: Garentor with retired parents
Hi Narelle,
Many lenders do not like having retired people being part of a loan for borrowers that are younger, particularly if their home is security for the loan. That being said there are some lenders that can likely assist with your situation as long as your farm is just a hobby farm as you said. If there is just solar power then this may be an issue for some lenders.
Thanks
Many lenders do not like having retired people being part of a loan for borrowers that are younger, particularly if their home is security for the loan. That being said there are some lenders that can likely assist with your situation as long as your farm is just a hobby farm as you said. If there is just solar power then this may be an issue for some lenders.
Thanks