Hello home loan forum,
I’m currently studying in the University of Tasmania on scholarship. I’ve not been using my scholarship income excessively and so I’m thinking of using it to take out a mortgage. I’ve heard from some of my friends that I may be able to do this, won’t I?
Can I use my scholarship income to get a mortgage?
- Otto Dargan
- Mortgage Specialist
- Posts: 7730
- Joined: Sat Sep 06, 2008 5:55 pm
- Location: Sydney, Australia
- Contact:
Re: Can I use my scholarship income to get a mortgage?
Hello Pooh_Bear, welcome to the forums.
You may be able to use your scholarship income to take out a mortgage in order to buy a property. However, most lenders may only accept the following scholarships or fellowships:
The following income / benefits may not be accepted by the lenders:
Cheers,
Otto
You may be able to use your scholarship income to take out a mortgage in order to buy a property. However, most lenders may only accept the following scholarships or fellowships:
- Commonwealth scholarship - Government scholarships are generally paid as tax free income on an ongoing basis. Some lenders may accept this income for a home loan.
- University scholarship - University scholarships may either be paid as taxable income or paid as a tax free income on an ongoing basis. A few lenders may accept this income for a home loan.
- Fellowship - Lenders may only accept this income on a case by case basis, depending upon the nature of the payments as well as the likelihood that it is to continue.
The following income / benefits may not be accepted by the lenders:
- Scholarships awarded as a prize.
- Merit based scholarships.
- Fee exempt scholarships.
- Direct payment of tuition.
- HECS exemption.
- Free accommodation.
- Additional allowances. However, if it is a government benefit then it may be accepted on a case by case basis.
Cheers,
Otto
Re: Can I use my scholarship income to get a mortgage?
It’s a government scholarship so I don’t think I should have much problems getting it accepted. I don’t know how much I will be allowed to borrow so can you also tell me about this?
- Otto Dargan
- Mortgage Specialist
- Posts: 7730
- Joined: Sat Sep 06, 2008 5:55 pm
- Location: Sydney, Australia
- Contact:
Re: Can I use my scholarship income to get a mortgage?
Hi Pooh_Bear,
The amount you may be able to borrow depends upon your situation. If there is:
Cheers,
Otto
The amount you may be able to borrow depends upon your situation. If there is:
- Less than 12 months remaining on scholarship then you may be able to borrow up to 80% of the property value. Possibly more on a case by case basis. Most lenders will not accept your income in their assessment.
- More than 12 months remaining on scholarship then you may be able to borrow up to 90% of the property value. If you are financially strong then you may even be able to borrow up to 95% of the property value.
- More than 12 months remaining on scholarship and you take out a guarantor home loan then you may borrow up to 105% of the value of the property. This may allow you to borrow the stamp duty as well if it is not exempt in your state.
Cheers,
Otto
Re: Can I use my scholarship income to get a mortgage?
I’ve got more than 12 months remaining on my scholarship so I think I’ll go for 90% of the property value. You’ve been a great help to me. Thanks a lot, Otto. I’ll give you a call by the end of this month to discuss my situation and loan needs. Goodbye.
Re: Can I use my scholarship income to get a mortgage?
Hello!
I also have a small scholarship income which I want to use to take out a mortgage. With what I can gather, I think I can get it accepted but what concerns me is that I don’t even have a little deposit. Is there anyone who can suggest a loan option for me?
I also have a small scholarship income which I want to use to take out a mortgage. With what I can gather, I think I can get it accepted but what concerns me is that I don’t even have a little deposit. Is there anyone who can suggest a loan option for me?
- Otto Dargan
- Mortgage Specialist
- Posts: 7730
- Joined: Sat Sep 06, 2008 5:55 pm
- Location: Sydney, Australia
- Contact:
Re: Can I use my scholarship income to get a mortgage?
Hi Sonya,
If you want to take out a mortgage without a deposit then a guarantor loan may be the only option for you. With a guarantor mortgage:
You can have a look at our website or give us a call if you want to learn more.
Cheers,
Otto
If you want to take out a mortgage without a deposit then a guarantor loan may be the only option for you. With a guarantor mortgage:
- You do not need to have any savings.
- You may be able to borrow the full purchase amount plus the money needed for stamp duty or any other associated costs.
- You do not need to pay Lenders Mortgage Insurance (LMI).
- Both investors as well as buyers for residential purposes may be able to take advantage of this product.
- The interest rates may be exceptionally low in many cases.
You can have a look at our website or give us a call if you want to learn more.
Cheers,
Otto
Re: Can I use my scholarship income to get a mortgage?
That sounds like a good idea. Yeah, I think I’ll give you a call by Thursday to understand more about this. Thanks for your help