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  • Profile photo of doggitydoggity
    Member
    @doggity
    Join Date: 2009
    Post Count: 11
    October 17, 2010 - 3:50 am

    Hi all,

    I'm looking into buying a PPOR and I have a couple of questions.

    1. Other than the obvious issue of a really low income, does being an apprentice restrict my borrowing capacity?

    2. Would lenders include payments I receive from the Government as income? (I get $150/wk on top of my wages)

    3. We have just moved interstate and both been in new jobs for less than a month. Will that be an issue?

    If any of you champion brokers out there could shed some light it would be muchly appreciated.

    My current situation is:

    – Currently have two IPs.  Total value approx $820k, loans of $700k, total rental income $730/wk.
    – Savings of about $50000
    – Credit card limit of $5000 with $0 balance
    – My income is about $30000 including government incentive
    – Wife's income is $50000

    We are looking to buy a place around the $400k price range.

    Thanks in advance for any help.  If you need more info let me know.

    Cheers.

    Profile photo of LHLH
    Participant
    @lh
    Join Date: 2010
    Post Count: 97
    October 19, 2010 - 5:08 am

    Hey Doggity,

    Being an apprentice is fine for certain lenders (CBA especially), as long as you are full time and can afford the loan, so income is your main hurdle here. Having two incomes plus the rental really helps with your servicing. Some issues the lender might have is that assuming you only use the cash available, you would need to go to about 90% LVR on the loans and mortgage insurers can be much stricter than the lenders. There are options for you to release equity from your IP's if the valuations can get  higher valuations than what you have stated.

    Are the payments from the Gov part of the adult apprentice scheme?

    Profile photo of doggitydoggity
    Member
    @doggity
    Join Date: 2009
    Post Count: 11
    October 19, 2010 - 8:45 am

    Hi Lincoln,

    Thanks for your reply.

    Yes the government incentive is from the adult apprenticeship scheme.
    I was actually thinking I would have to sell at least one of my IP's to reduce my overall debt, which would also increase my deposit.  I guess I should go and see a broker to see what my options are.

    Cheers.

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    October 19, 2010 - 11:34 am

    If you can release some equity in one of your IPs this will allow you to bring a larger deposit to the deal. With a larger deposit, you may only need to take out an 80% loan on your PPOR. If that's the case, there's a couple of lenders that I can think of that may do the deal.

    Are either of you on probationary periods with work?

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

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