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  • Profile photo of NikolaNikola
    Member
    @nikola
    Join Date: 2004
    Post Count: 2

    Hi Everyone, These forums seem great with so much helpful info. If anyone could help me with my problem……
    I want to buy my first ppty soon but the bank has told me I need to increase my income by $500per month to qualify for the loan amount I want. So, I have taken a second job after work which has increased my income by $700per month.
    I’m worried that when I do apply for the loan in about a month they will reject me anyway because I have only been working in this second job for a few months and its a permanant casual position.
    The bank I want the loan with is HSBC, as they seem to lend the most for my income (by the way, I’m a Property Manager – which explains why it so low!).
    Would the bank consider this second position too risky? Or, does anyone know of a different more accepting bank?
    Sorry for the long winded question, but I’m worried I’m working 53hours a week for nothing![confused2]
    Thanks

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

    Nikola,

    Get a broker to run your figures for you. If they have enough lenders on their panel they will immediately letyou know which lender will lend you the most in your situation.

    Ask friends and familyfor a referral to a broker to ensure you find one that is capable.

    All the best,

    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 GeronimoGeronimo
    Member
    @geronimo
    Join Date: 2002
    Post Count: 167

    Hi Nikola

    And many lenders will take permanent part-time into account.Casual may be a little more difficult.

    Have you thought about renting out the property initially, as then you can use the rental income to increase your servicibility?

    Brendon


    Acute Mortgage Reductions
    http://www.acutemr.com.au
    [email protected]

    Profile photo of Mobile MortgageMobile Mortgage
    Member
    @mobile-mortgage
    Join Date: 2003
    Post Count: 913

    Hi Nicola,
    HSBC will accept 50% of casual/part time income, 100% after 1 continuous year; this criteria will vary between lenders,

    There are lending institutions, including HSBC, who will take into account 70% to 100% of anticipated rental income when calculating serviceability,
    Keep in mind, Your choice of lender should not be based solely on the maximum loan you qualify for.

    Regards
    Steven
    Mortgage Broker

    [email protected]
    http://www.mobilemortgagemarket.com.au
    Ph:1800 820 500
    VICTORIA

    PLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.

    Profile photo of NikolaNikola
    Member
    @nikola
    Join Date: 2004
    Post Count: 2

    Thanks everyone for all the info! This forum is great.
    It looks like I will have to include the rental income instead of this dodgy second job. The only problem with that is that I will have to get an Investment loan and then may not be able to get the grants (I live in Vic so its 12,000).
    Does anyone know if you buy a property and live in it for 6 months, if you can still claim the grants if you have it under an investment loan?
    As I do intend to live in it and do it up before leasing it.

    Nikola

    Profile photo of melbearmelbear
    Member
    @melbear
    Join Date: 2003
    Post Count: 2,429

    Nikola, I guess my brother is in a similar situation to you. He is buying a property for his PPOR, but is going to rent it for the first few months (to my other brother), so that he can claim IP expenses (most notably stamp duty in ACT[biggrin]) and we’re tossing up whether or not to get an IO loan or not. I think we will as he has to repay my folks who lent him the deposit (after obtaining the loan themselves). Then he will move in, and claim the FHOG…

    Cheers
    Mel

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