A little confused

Any general questions you might have in regards to loans and finance.
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belinda_81
Posts: 6
Joined: Fri Jun 25, 2010 10:44 pm

A little confused

Post by belinda_81 »

Could you please explain how this all works? I keep getting confused as to what we can borrow etc..

Our situation is:

We currently have 20k in savings and have sold our land and will have a further 30K from that.

We are looking to buy an established property around the 360K - 370K mark.. We also wanted to buy a car within this for about $20k..

I will be perm part time in another month and I will earning $48k and my partner is full time on 43K.. the only debt we will have it a car loan currently $587 monthly

My question is.. will we be able to get a loan and a car? I understand that we need to pay for stamp duty as well is that included in the loan?

thanks Belinda

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Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: A little confused

Post by Otto Dargan »

Hi Belinda,

If you would like to limit your loan to 90% of the property value then this will use up all of your savings to cover the deposit and expected costs to do with buying. If you borrow 95% then you will have almost enough to buy a car however the increased cost of LMI would make this quite an expensive option.

If you are using us as your mortgage broker then we can do a full analysis for you and work out the best option available. Personally I would consider either not buying the car or buying a car for $10k instead as this would work out much better for you financially. Buying a house and car at the same time generally isn't the best idea.
Otto Dargan
Mortgage Broker
P | 1300 889 743
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