All Topics / Finance / Can I get a loan ?

Viewing 20 posts - 1 through 20 (of 146 total)
  • Profile photo of ferdinandchferdinandch
    Member
    @ferdinandch
    Join Date: 2010
    Post Count: 91

    I am a soon-to-be first home buyer. My situation is like this:

    Combined income, Net after tax : $6,850 per month
    Have been in our job for one year.
    Deposit available : $80,000 (2/3 is genuine saving)

    Looking for a property worth: $500,000
    Purpose: Owner-Occupied
    LVR : 15% and I am looking for a loan that waive LMI (I heard there are three lenders can do that)
    Credit Card Limit: $31,000 , balance: $9,000. Will close some credit cards to make the limit become $10,000
    No bad credit history.

    Can I get a loan with a good rate ?

    Regards,

    Ferdinand

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,018

    Hi Ferdinand

    On the information to hand and on the basis that you CC limit is only $10K Yes you would appear to qualify merely from a serviceability point of view.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of ferdinandchferdinandch
    Member
    @ferdinandch
    Join Date: 2010
    Post Count: 91
    Qlds007 wrote:
    Hi Ferdinand

    On the information to hand and on the basis that you CC limit is only $10K Yes you would appear to qualify merely from a serviceability point of view.

    Cheers

    Yours in Finance

    Hi Richard, what do you think about the fact that we have only been in the current job for 1 year ?

    Do you also know anything about lenders waiving LMI on 15% deposit ?

    Profile photo of Mick CMick C
    Participant
    @shape
    Join Date: 2010
    Post Count: 1,099

    Ferdinand- i did quick calculation – yup your fine with serviceability** at 10k CC – Lowering your cc limit is a good thing in general but also may not the the best thing if your JUST abt to apply for a loan- The lender will ask for 3 month CC statements…and if they see different limits JUST before you apply for a loan it may not be to your advantage so carefully planning is required and applying to the right lender is a must.

    No LMI with 15% genuine saving and 1 year with current employer is fine ( 85% LVR)

    Regards
    Michael

    ** Based on:
    – Above information given
    – No dependent?
    – Solo application ( 1 Adult)
    – NO another expense, beside standard living expense
    -FHO
    – NO another liability
    -No hecs

    Mick C | Shape Home Loans
    http://www.shapehomeloans.com.au/
    Email Me | Phone Me

    Same Banks. Better Rates. Served With a Passion.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,018

    Hi Ferdinand

    Agree with Michael based on the relevant assumption serviceability appears fine.
    1 Year employment with current lender is not a problem.

    Yes there are a couple of lenders that will waive LMI at 85% and others that dont charge LMI but a small fee instead and then self insure.
     
    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of ferdinandchferdinandch
    Member
    @ferdinandch
    Join Date: 2010
    Post Count: 91

    Thanks Michael.

    No dependent
    Joint application ( 2 Adults)
    CC repayment = $120 per month + standard living expenses
    FHO
    No HECS

    Profile photo of Mick CMick C
    Participant
    @shape
    Join Date: 2010
    Post Count: 1,099

    OK.
    If you can provide the rest of the below information, either me or Richard will be able to give you with an more accurate answer about your exact “borrowing limits/ amount” – Do you want me to post it here, or PMS/email you the answer/limit? ( likewise, you can PMS/email me or Richard the answers if you prefer)

    Questions applys too both applicants:

    1. Provide the “base” income for each applicant (if your in an industry that get’s paid a lot of “allowance” “overtime” and “shift work” let me know…it will be calculated slightly differently
    2. Are you both Full time? or is it causal, part time, contractors etc…
    3. How much rent do you pay currently? or are you living at home?
    4. Beside standard living expense, any another luxury expense and how much- ie Gym membership, special membership ( ie boating club),
    5. What financial postilion do you hold for the car? ie is it owned outright, company owners or car loan?
    7. Any another liablilty? ie Personal loan, Store card?
    8. Lastly what state is the property your planing on buying located?( for FHOG purpose…)

    Regards
    Michael

    Mick C | Shape Home Loans
    http://www.shapehomeloans.com.au/
    Email Me | Phone Me

    Same Banks. Better Rates. Served With a Passion.

    Profile photo of ferdinandchferdinandch
    Member
    @ferdinandch
    Join Date: 2010
    Post Count: 91

    1. Provide the “base” income for each applicant (if your in an industry that get’s paid a lot of “allowance” “overtime” and “shift work” let me know…it will be calculated slightly differently
    Applicant 1: 55,000 gross + super
    Applicant 2: 45,500 gross + super

    2. Are you both Full time? or is it causal, part time, contractors etc…
    Both Full Time, 1 year in job. Left last job because moved interstate.

    3. How much rent do you pay currently? or are you living at home?
    280 per week

    4. Beside standard living expense, any another luxury expense and how much- ie Gym membership, special membership ( ie boating club)?
    nothing, only $120 minimum monthly Credit Card repayment

    5. What financial postilion do you hold for the car? ie is it owned outright, company owners or car loan?
    Car, $10,000 owned outright

    7. Any another liablilty? ie Personal loan, Store card?
    Credit Card, roughly $6,000 , but I can repay if I have to (will not affect my deposit)

    8. Lastly what state is the property your planing on buying located?( for FHOG purpose…)
    New South Wales. I am trying to narrow down my preference to Waitara area and Marsfield area. Both of us eligible, have checked before. We will occupy the property.

    Post it here should be fine though. Thanks Michael and Richard.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,018

    All looks ok and appears to meet lending criteria for No LMI.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of ferdinandchferdinandch
    Member
    @ferdinandch
    Join Date: 2010
    Post Count: 91
    Qlds007 wrote:
    All looks ok and appears to meet lending criteria for No LMI.

    Cheers

    Yours in Finance

    Would you mind to tell me what is the lending criteria for no LMI with LVR 85% ?

    Profile photo of Marty McDonaldMarty McDonald
    Participant
    @marty-mcdonald
    Join Date: 2010
    Post Count: 64

    85% no mi with ing not possible unless main income earner is 2 years in job I think from memory. Westpac fine. Citibank should also be fine as long as property in good location ie Sydney metro.

    Marty McDonald | Mortgage Experts
    http://mortgageexpertsonline.com.au/
    Phone Me

    Profile photo of ferdinandchferdinandch
    Member
    @ferdinandch
    Join Date: 2010
    Post Count: 91
    Marty McDonald wrote:
    85% no mi with ing not possible unless main income earner is 2 years in job I think from memory. Westpac fine. Citibank should also be fine as long as property in good location ie Sydney metro.

    Hi Marty, thank you for your help. I would like to ask, with 85% LVR no LMI, what interest actually they offer (Westpac and Citi) ? Is it standard variable rate or + some percentage, because of no LMI payable ?

    Richard or Michael if you can help me to answer this question as well, much appreciated. I am just wondering is that privilege comes at no cost.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,018

    Standard rate but your Broker will need to get the LMI Waiver for you as it is not automatic.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of ferdinandchferdinandch
    Member
    @ferdinandch
    Join Date: 2010
    Post Count: 91
    Qlds007 wrote:
    Standard rate but your Broker will need to get the LMI Waiver for you as it is not automatic.

    Cheers

    Yours in Finance

    By saying that, does that mean that if I apply by myself, I wouldn’t be able to get LMI waiver ?

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,018

    As far i am aware no it is not available thru the direct channel.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of Mick CMick C
    Participant
    @shape
    Join Date: 2010
    Post Count: 1,099

    Sorry havn’t been on for a while- So busy!!! rates are so competitive and it;s always on the news….

    Ferdinand – Did the Cal- yes you will be fine with serviceability for the amount your after.

    In regards to LMI–

    –ING—
    NO LMI at 85% — Must be in job for 2 years MIN! ( so that’s a no for you)
    Reduce LMI up to 95% — Same as above

    —Westpac—
    NO LMI 85% – “Vanilla ” Loan applicants only9 ( Perfect Credit File, No inner city apartments, >50squ, Stadard properties, Genuine savings, stable employment) -From what i can see You be fine….your consider a Vanilla loan – unless you have a default on your CR?

    —NAB **—-

    Up to 90% NO LMI – for selective clients only – Normally $600,000+ loan , Vanilla loan + “pro” pack professional or medico OR Staff of NAB :)

    –Suncorp—
    Reduce LMI up to 95% ( effective from April 4th)- new product! – Standard guild-lines…

    —Citibank—-
    NO LMI 85%- Vanilla loan only + Non-genuine savings up to 85% ok.

    -nationwidelending—
    85% NO LMI – havnt done a loan thru these ppl for over 6 month…so not 100% sure.

    There are a few more smaller lenders, who uses similar product/lenders—-

    Either way some of these deals are not available to the general public via the broker and intro market only.

    Regards
    Michael

    Mick C | Shape Home Loans
    http://www.shapehomeloans.com.au/
    Email Me | Phone Me

    Same Banks. Better Rates. Served With a Passion.

    Profile photo of Mick CMick C
    Participant
    @shape
    Join Date: 2010
    Post Count: 1,099

    Lastly it’s normal standard rate…No extra.!

    Mick C | Shape Home Loans
    http://www.shapehomeloans.com.au/
    Email Me | Phone Me

    Same Banks. Better Rates. Served With a Passion.

    Profile photo of ksherwellksherwell
    Member
    @ksherwell
    Join Date: 2007
    Post Count: 125

    I believe you should qualify by going direct to the bank

    Profile photo of ferdinandchferdinandch
    Member
    @ferdinandch
    Join Date: 2010
    Post Count: 91

    Guys,

    I would like to have someone to be able to clarify few things. I plan to buy the property in mid August (start looking early August).
    1. When I should start to get a loan approval either through the bank directly or mortgage broker ? if through a mortgage broker, then when I should start to meet in person ?

    2. As I told in my original post, I plan to buy with 15% deposit no LMI. Yet, the properties that I am interested in, the price tags are around $520K to $540K. That means I would be liable for reduced stamp duty (NSW). Can I capitalise that ?

    3. Richard or Michael who can tell me, with the calculation previously, am I really maxed out already ? Can I borrow $450K ?

    4. When I go to a mortgage broker or a bank or a pre approval in June or July, my money will not be 15% yet, but somewhere around 13%, but it will be 15% in August. Does it matter ?

    5. I will get a payrise (90% probability) in June around $2,500 to $3,000 annually. so my annual salary will be 57,500 gross plus super. Will it help me if I go for a pre-approval only few weeks after that payrise ? Will bank calculate my salary based on my increased salary ?

    Thank you, any help will be greatly appreciated.

    Profile photo of ferdinandchferdinandch
    Member
    @ferdinandch
    Join Date: 2010
    Post Count: 91

    Who has bad credit ?

Viewing 20 posts - 1 through 20 (of 146 total)

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