All Topics / General Property / Finance when on a pension?

Viewing 16 posts - 1 through 16 (of 16 total)
  • Profile photo of RussHRussH
    Member
    @russh
    Join Date: 2004
    Post Count: 342

    Does anyone know how i can get finance when i have a low income.Have heaps of equity.But no job.

    Russ.

    Profile photo of elveselves
    Member
    @elves
    Join Date: 2003
    Post Count: 507

    well equity is one thing, servicing a loan is another, not sure banks like pensions

    Cheers

    Profile photo of Mortgage HunterMortgage Hunter
    Participant
    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781

    It is possible if you have the equity and you know you can afford it.

    You would need to provide more info for specific advice.

    Regards,

    Simon Macks
    Mortgage Broker
    http://www.mortgagehunter.com.au
    0425 228 985

    Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

    Profile photo of ezy.home.loans23320ezy.home.loans23320
    Member
    @ezy.home.loans23320
    Join Date: 2003
    Post Count: 144

    Hi Russ you can only borrow if you can aford to repay the loan if you are going to rent it out it should be able to support the loan with out your input.if you need to know how much the loan will cost in monthly payment at interest only…take the loan amount say $120000 x by the interest rate say 6.69 div by 365 x that by 31 =answer $681 per month interest only [this is an eg only there are other factors in getting a loan and the CRA report is a big factor [email protected] hope this helps

    Profile photo of CeliviaCelivia
    Participant
    @celivia
    Join Date: 2003
    Post Count: 886
    Quote:
    if you need to know how much the loan will cost in monthly payment at interest only…take the loan amount say $120000 x by the interest rate say 6.69 div by 365 x that by 31 =answer $681 per month interest only

    Quote:
    May be a dumb question, but why do you need to multiply by 31?

    I thought interest only was just purchase price multiplied by the interest rate, then divided by 12 to get the monthly repayment.
    SO have I been working this out wrong?[:I]
    So I would get 120,000×6.69%=$8028/12=$669 per month.[?]

    Profile photo of CeliviaCelivia
    Participant
    @celivia
    Join Date: 2003
    Post Count: 886

    Oops I meant to say Loan amount, not purchase price.

    Profile photo of ezy.home.loans23320ezy.home.loans23320
    Member
    @ezy.home.loans23320
    Join Date: 2003
    Post Count: 144

    My thought on the subject I guess I have always done my calculations this way …
    you take the loan amount divide it by the current interest rate multiply by 365 days in the year you now have a daily rate x that by 31 days in the month this is only rough because there are 30 31 29 days in the months but it gives a good indication …[:D]

    Profile photo of CeliviaCelivia
    Participant
    @celivia
    Join Date: 2003
    Post Count: 886

    AHA I can see it now! Thanks for explaining.

    Profile photo of RussHRussH
    Member
    @russh
    Join Date: 2004
    Post Count: 342

    Thanks for the info guys.I have just read 0-130 and i believe that if u can +cf property from renting then why do u need an income to service loan.

    Russ.

    Profile photo of DerekDerek
    Member
    @derek
    Join Date: 2004
    Post Count: 3,544

    Hi Russ,

    You, and the banks, need to include some consideration for vacancies – which is why (I suspect) most banks do not consider 100% of rental income when calculating loan serviceability.

    Derek

    [email protected]

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    There are lenders out there that will lend based on valuation only. No CRAA checks and no income checks. (They do not care if you can service the loan or not). So yes you can get a loan, but be careful.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of elveselves
    Member
    @elves
    Join Date: 2003
    Post Count: 507

    my bank does valuations and rent at 48 weeks a year. as part of the income I will receive.
    eg four weeks vacancy rate as a buffer

    Profile photo of brgorriebrgorrie
    Participant
    @brgorrie
    Join Date: 2003
    Post Count: 14

    I guess it depends on the lender … the lowest I have seen
    to date is 75% ( or roughly 39 weeks ) of the rental income
    being included …

    Profile photo of AdministratorAdministrator
    Keymaster
    @piadmin
    Join Date: 2013
    Post Count: 3,225

    The obvious reason for excluding some of the rental income is because rental income by itself doesn’t tell us that one needs to take into account the vacancy factor for the properrty, the repairs, maintenance, rate and possible land tax charges, insurance etc etc.

    So a lender who will only take say 80% of the rental income into account is doing it for that reason.

    Pisces

    Profile photo of kay henrykay henry
    Member
    @kay-henry
    Join Date: 2003
    Post Count: 2,737

    Russ,

    You said: `I have just read 0-130 and i believe that if u can +cf property from renting then why do u need an income to service loan.´

    There is no guarantee that we can have a tenancy for 25 years or the term of the loan. What if you need major repairs or all the other things associated with a mortgage on an old house? Generally old houses are the only ones that are CF pozz these days.

    It is a real risk for you to have a new mortgage on a pension.

    kay henry

    Profile photo of elveselves
    Member
    @elves
    Join Date: 2003
    Post Count: 507

    yep hard enough on wages and other income at times

Viewing 16 posts - 1 through 16 (of 16 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.