Search found 7730 matches

by Otto Dargan
Wed Oct 16, 2019 7:56 pm
Forum: Home Loan Forum
Topic: Would lenders accept an applicant on Bridging Visa?
Replies: 5
Views: 70191

Re: Would lenders accept an applicant on Bridging Visa?

Hi Tina,

Saving a large deposit is one of the ways to improve your chances. The best part is, the deposit can be a gifted deposit from your parents.

You might even get a guarantor home loan with LMI waived.

There are other factors that lenders will look into when assessing your application:
  • The length of your relationship.
  • The employment status of both applicants.
  • The credit history of both applicants
  • The type of property you are buying
Furthermore, if you and your husband are buying as joint tenants, then Foreign Investment Review Board approval is not required.

Cheers,
by Otto Dargan
Wed Oct 16, 2019 7:35 pm
Forum: Home Loan Forum
Topic: Would lenders accept an applicant on Bridging Visa?
Replies: 5
Views: 70191

Re: Would lenders accept an applicant on Bridging Visa?

Hello Tina. Welcome to the forums.

Since you are an Australian citizen, you and your partner will be able to borrow up to 95% of the property value, if not it would be limited to 80%.

However, there are a number of factors that lenders will look into when approving your loan under bridging visa:
  • What visa your husband was on prior to being on bridging visa
  • The visa your husband is applying for now (whether it’s PR, work visa, spouse visa, temporary visa, etc)
  • The time it will take for your new visa to be granted.
  • The overall merit of your application.
Please note that if you are borrowing over 80%, you will need to pay Lenders Mortgage Insurance (LMI), and most lenders would require at least a 5% to 10% deposit for the 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 first home buyers loan.

Cheers,
by Otto Dargan
Tue Oct 15, 2019 8:19 pm
Forum: Home Loan Forum
Topic: With our small deposit, what options do we have?
Replies: 5
Views: 69400

Re: With our small deposit, what options do we have?

Hi Kira,

No, it is not necessary to get the same bank account. As long as you can prove to the banks or lenders that there are regular deposits made to both of your accounts, it should not be an issue.

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 Oct 15, 2019 7:44 pm
Forum: Home Loan Forum
Topic: With our small deposit, what options do we have?
Replies: 5
Views: 69400

Re: With our small deposit, what options do we have?

Hi Kira,

Yes, we have lenders on our panel who will allow you to borrow up to 97% of the property value inclusive of LMI. LMI has to be paid for any loans with a loan to value ratio of above 80%.

However, to qualify for 97% home loan, stricter lending criteria applies like having sufficient income, strong employment history, clean credit history, little to no debt, sufficient asset position and there are postcode restrictions on your property.

To qualify your rent as genuine savings, you will need to how a rental ledger from a licensed real estate agent that you’ve been making timely and full rental payments for the past 12 months.

You can find a template of a rental reference letter. The letter is proof to lenders of your ability to save money.

Cheers,
by Otto Dargan
Tue Oct 15, 2019 6:53 pm
Forum: Home Loan Forum
Topic: With our small deposit, what options do we have?
Replies: 5
Views: 69400

Re: With our small deposit, what options do we have?

Hello Kira. Welcome to the forums.

There are many options available to get a home loan despite not having a large saving. However, a minimum of 5% of the property price is required as genuine savings. In your case, you will have to show a savings of at least $10,000.

There are also some lenders who will take your rent as genuine savings, but you will still need to show a deposit.

This savings can come in the form of gifted deposits from your parents and some banks even allow personal loans as genuine savings.

The most common option that people with little to no savings undertake when getting a home loan is taking on a guarantor loan. With a guarantor loan, you can borrow up to 105% of the property value.

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 Oct 15, 2019 4:05 pm
Forum: Home Loan Forum
Topic: Will lenders assess the income of my part-time job and business?
Replies: 5
Views: 69106

Re: Will lenders assess the income of my part-time job and business?

Hi Matt,

Lenders Mortgage Insurance (LMI) is only paid when the loan to value ratio (LVR) is more than 80%. Calculating the LVR, it is 78% so you do not have to pay LMI.

LMI is a one-off fee paid by borrowers who need to borrow more than 80% of the property value. It is an insurance that assists the bank or lender if the borrower defaults on their mortgage repayments.

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 for part-time workers.

Cheers,
by Otto Dargan
Tue Oct 15, 2019 3:29 pm
Forum: Home Loan Forum
Topic: Will lenders assess the income of my part-time job and business?
Replies: 5
Views: 69106

Re: Will lenders assess the income of my part-time job and business?

Hi Matt,

There are some major lenders who will look into your application and offer you competitive interest rates, even when you are working part-time. Although the options are few, one or two lenders can look into your situation and get you the best deal for your situation.

If you are a riskier borrower, then the interest rates would be higher. However, since you have saved a sizeable deposit and are earning a decent income, then lenders would not view you as a risky borrower.

Cheers,
by Otto Dargan
Tue Oct 15, 2019 2:50 pm
Forum: Home Loan Forum
Topic: Will lenders assess the income of my part-time job and business?
Replies: 5
Views: 69106

Re: Will lenders assess the income of my part-time job and business?

Hello Matt. Welcome to the forums.

Yes. There are lenders who will assess your part-time and business income when calculating your serviceability (borrowing power)

Some lenders and banks are quite conservative when it comes to assessing the income of part time employees as these borrowers are seen as riskier due to their unstable employment situation. Most lenders will require you to be in the job for at least 6 months and you will need to show your recent payslips, group certificates or tax returns as proof of income.

If you’ve been working for less than a year, then some lenders will only assess 50% of your income. There are some lenders who might accept 100% of the income if you’ve been in your job for more than a year.

Banks and lenders will assess your business income in the following ways:
  • Some lenders might use the lowest income of the last two years.
  • Some even use the most recent year’s income shown on your tax return.
  • Others might average the two years income or take 120% of the lowest year’s income.
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 11, 2019 4:40 pm
Forum: Home Loan Forum
Topic: Keystart home loans - Are they worth it?
Replies: 5
Views: 72083

Re: Keystart home loans - Are they worth it?

Hi Darryl,

There isn’t a waiting period per se, rather it’s how much equity you have on your home loan. Typically, you’ll require at least a 20% equity in your home loan to refinance without incurring lenders mortgage insurance (LMI). Although, you can refinance your home loan up to 90% loan to value ratio with some of our lenders and up to 95% LVR with a couple of our lenders. Stricter lending criteria apply.

We have almost 40 lenders on our panel so you can rest assured knowing you’re getting the best deal based on 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 95% home loan.

Cheers,
by Otto Dargan
Thu Oct 10, 2019 7:41 pm
Forum: Home Loan Forum
Topic: Keystart home loans - Are they worth it?
Replies: 5
Views: 72083

Re: Keystart home loans - Are they worth it?

Hi Darryl,

Keystart low deposit home loans work best in a rising market but can become a trap with falling housing prices. As you’re contributing only 2% of the property value for the house and taking out a home loan for the rest at a high-interest rate if property prices fall that means you won’t have the equity to be able to refinance out of the high rate mortgage. Essentially, you may get stuck as a mortgage prisoner.

Cheers,
by Otto Dargan
Thu Oct 10, 2019 3:51 pm
Forum: Home Loan Forum
Topic: Keystart home loans - Are they worth it?
Replies: 5
Views: 72083

Re: Keystart home loans - Are they worth it?

Hello Darryl. Welcome to the forums.

Keystart home loans are designed to make homeownership a reality sooner and are mostly a transitional lender. Their qualifying criteria for low deposit home loans are very lenient in some aspects and can save you thousands of dollar in lenders mortgage insurance (LMI) fees. However, as you’ve rightly pointed out, their low deposit home loan’s interest rates are rather high. Currently, their low deposit home loan interest rate is 4.94% p.a. (comparison rate is 5.03% p.a.)

A good way to look at it is how much extra interest you may have to pay and compare that with how much you’re saving in LMI fees. For a $380,000 property, your home loan amount is ($380,000 less your 2% deposit = $372,400). You’re saving anywhere between $12,000-$13,000 in LMI fees approximately.

Now, you’ll be paying $714,000 over the life of the loan at principal and interest repayment on a 30-year term with that interest rate. However, if you were to get the same loan at 3.94%, over the life of the loan you’ll pay $635,413 in total. You’ll pay an extra $79,000 in interest. At the end of the day, you’re out of pocket ($79,000 less $13000 lmi savings) $66,000.

Ultimately, saving a deposit can be quite tough. So, for those who just want to buy a home now, it could be a fair trade. However, there are a few no deposit home loan options that a lot of Australians are utilising.

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

Cheers,
by Otto Dargan
Thu Oct 10, 2019 1:43 pm
Forum: Home Loan Forum
Topic: How do I get a free copy of my credit report?
Replies: 1
Views: 55193

Re: How do I get a free copy of my credit report?

Hello Joel. Welcome to the forums.

You can obtain one free credit report from each of the three credit reporting bodies per year. Additional reports are provided at a fee.
To get your free copy, please contact the credit reporting bodies directly:
  • Equifax (previously known as Veda Advantage): 138 332
  • Illion (previously known as Dun & Bradstreet): 1300 734 806
  • Experian Australia Credit Services: 1300 783 684
You’ll receive it within 10 days of submitting a request along with the required identification documents.

For accounts (credit cards, personal loans etc) which have been closed but are still showing up on your credit file, you can just obtain the necessary evidence i.e. closure letter from the lender as evidence which is sufficient for your home loan assessment. If there’s an incorrect credit card limit on your credit file, you can provide evidence of the correct amount through your account statement etc.

If there’s incorrect information listed on your report, you can ask the credit reporting agencies directly to remove or correct the information. Although, this can take up to a few weeks to a month.

Comprehensive credit reporting has been fully implemented by the big four.
Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a no credit score home loan.

Cheers,
by Otto Dargan
Fri Oct 04, 2019 8:27 pm
Forum: Home Loan Forum
Topic: How can a freelancer get a home loan approved?
Replies: 5
Views: 68651

Re: How can a freelancer get a home loan approved?

Hi Carlton,

Having multiple credit cards might be a red flag for lenders as it might indicate that you are living beyond your means. However, if you have been able to make regular repayments and never used the cards to their full limit, then banks and lenders will look at this favourably.

If you have unused credit cards, it is best to cancel them, as most lenders will assume that you use credit cards fully drawn to the limit.

If your repayments are made on time, some banks and major lenders don’t even take your credit limit into consideration when assessing your borrowing power and instead use the largest balance on your card from the last three months.

You can learn more about improving your borrowing power here.

Give us a call on 1300 889 743 or fill in our free assessment form and we will work with you to get the amount you need.

Cheers,
by Otto Dargan
Fri Oct 04, 2019 8:18 pm
Forum: Home Loan Forum
Topic: How can a freelancer get a home loan approved?
Replies: 5
Views: 68651

Re: How can a freelancer get a home loan approved?

Hi Carlton,

Australian lenders deal with self-employed borrowers regularly so you’re more likely to get approval if you can qualify as one. This means you’ll need to have an Australian Business Number (ABN) and have completed your financials for at least two years.

They work on a contractual basis and are not committed to long term employment.

Therefore, you will need to provide lenders: Your tax returns will prove that your income is consistent and ongoing. Therefore, most lenders require freelancers to be employed for at least two to three years.

Cheers,
by Otto Dargan
Fri Oct 04, 2019 8:07 pm
Forum: Home Loan Forum
Topic: How can a freelancer get a home loan approved?
Replies: 5
Views: 68651

Re: How can a freelancer get a home loan approved?

Hello Carlton. Welcome to the forums.

Getting your home loan approved depends on how lenders will assess your application. Most lenders might think that your income is inconsistent and is project-based. Therefore, you will be subject to stricter lending criteria and might reduce your borrowing capacity.

However, if you do meet their lending criteria and provide the required documents to prove your income, you can borrow:
  • 90% of the property value if you have strong income and paid all your debts on time. Lenders mortgage insurance will be charged if you borrow over 80% of the property value.
  • 95% of the property value if you have a clean credit history, strong income, reasonable asset position, minimal debts and have at least 5% in genuine savings.
  • 105% of the property value if you can get a home loan with a guarantor. Once the loan drops down to 80% of the property value, then you can remove the guarantee.
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 as a freelancer.

Cheers,