Search found 7730 matches

by Otto Dargan
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.
by Otto Dargan
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.
by Otto Dargan
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.
by Otto Dargan
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.
by Otto Dargan
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.
by Otto Dargan
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
by Otto Dargan
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
by Otto Dargan
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
by Otto Dargan
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.
by Otto Dargan
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.
by Otto Dargan
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.
by Otto Dargan
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.
by Otto Dargan
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?
by Otto Dargan
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
by Otto Dargan
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