All Topics / Finance / How to get a personal for the deposit of a house

Viewing 11 posts - 1 through 11 (of 11 total)
  • Profile photo of UiriamuUiriamu
    Member
    @uiriamu
    Join Date: 2014
    Post Count: 2

    Hi All,

    Just wanted to see if anyone had any experience getting a personal loan where the stated purpose was as funds to help purchase a house.

    Profile photo of Tony FlemingTony Fleming
    Participant
    @the-dark-knight
    Join Date: 2008
    Post Count: 396

    It's a terrible idea to borrow money to borrow money. If money is a problem have you looked at refinancing to free up some equity or had a look at a joint venture or Vendor Financing? 

    Tony Fleming | Triumphant Property Group
    http://www.triumphantpropertygroup.com.au
    Email Me

    NSW Buyer's Agent specialising in Western Sydney-Blue Mountains-Orange-Albury

    Profile photo of FreckleFreckle
    Blocked
    @freckle
    Join Date: 2012
    Post Count: 1,680

    Banks in general don't give a toss what you use a personal loan for. I've used them in the past and never disclose the real reason for the loan. Unless it's changed the CBA had no upper limit on personal loans. As long as you could service it they where happy to shell out the dosh. 

    Personally I wouldn't use a pers loan for a buy and hold property. I've only ever used them for short duration opportunities. Ideal for property reno's and flips, deposit bonds etc.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Only aware of 2 lenders that will:

    1) Allow a personal loan to be the source of deposit and good luck getting an approval above 90% thru them.

    And not aware of any lender that will:

    1) Approve a personal loan where the intended purpose is for house deposit. To state another reason and then use for deposit is of course fraud as the purpose clearly needs to be defined from the outset.

    With the new Privacy Laws taking affect from today many a client will be caught on non disclosure going forward.

    Cheers

    Yours in Finance

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

    100% Investment Finance now available on selected properties. Email us for further information.

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

    Generally speaking I'm not a huge fan of borrowing money in order to borrow more. Especially for those purchasing for the first time. I think it's important to be able to demonstrate an ability to save – otherwise they could find it tough when it comes to meeting their repayments.

    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]

    Profile photo of FreckleFreckle
    Blocked
    @freckle
    Join Date: 2012
    Post Count: 1,680
    Qlds007 wrote:
    Only aware of 2 lenders that will:

    1) Allow a personal loan to be the source of deposit and good luck getting an approval above 90% thru them.

    And not aware of any lender that will:

    1) Approve a personal loan where the intended purpose is for house deposit. To state another reason and then use for deposit is of course fraud as the purpose clearly needs to be defined from the outset.

    With the new Privacy Laws taking affect from today many a client will be caught on non disclosure going forward.

    Cheers

    Yours in Finance

    Some years ago I applied to the CBA for a personal loan (40k). because I was self employed it became a paper war trying to get a simple loan across the line. After two weeks of shuffling papers I gave up. I then simply went on line and applied for the same loan under my wifes name. Walked down the bank and collected it 2 days later no questions asked.

    The reality is banks don't give a flying fig what you use loans for. They have one priority and one priority only … sell credit. The terms and conditions are there to keep regulators happy and at least give the appearance they are responsible lenders. Your average front line banking staff is heavily incentivised to sell sell sell. I worked with a bank manager who got out of the game simply because the constant pressure to sell and cross sell to meet targets had simply worn him down over the years to the point his ethical compass was literally broken. He found himself working out side his comfort zone and pressuring his staff to do the same all to meet head office targets.

    While banks down under are more responsible than their European and American cousins by a long shot they're definitely not the good guys many people think they are. Retail lending is a public duty for banks. They make their real money in the corporate world, HFT and dark pool trading and other questionable activities.

    Profile photo of UiriamuUiriamu
    Member
    @uiriamu
    Join Date: 2014
    Post Count: 2

    Thank you all for your input. Potentially I could get a 20% deposit but that would have to be from the sale of my property overseas which is not an option I want to pursue. Preferably I would rather obtain a personal loan but do not want to have to lie about the purpose.

    Profile photo of bm17bm17
    Participant
    @bm17
    Join Date: 2010
    Post Count: 47
    Jamie M wrote:
    Generally speaking I'm not a huge fan of borrowing money in order to borrow more. Especially for those purchasing for the first time. I think it's important to be able to demonstrate an ability to save – otherwise they could find it tough when it comes to meeting their repayments.

    Cheers

    Jamie

    Jamie I agree with you comments entirely but am a little unsure as to the difference between borrowing money via a personal loan and tapping into equity within a property as this will increase the loan amount which is effectively borrowing money isn't it?

    Cheers

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    bm17 wrote:
    Jamie M wrote:
    Generally speaking I'm not a huge fan of borrowing money in order to borrow more. Especially for those purchasing for the first time. I think it's important to be able to demonstrate an ability to save – otherwise they could find it tough when it comes to meeting their repayments.

    Cheers

    Jamie

    Jamie I agree with you comments entirely but am a little unsure as to the difference between borrowing money via a personal loan and tapping into equity within a property as this will increase the loan amount which is effectively borrowing money isn't it?

    Cheers

    Hi there

    I was talking more about someone purchasing their first property (home or investment) and using borrowed money to get it done. In that instance, I don't think it's a good idea because it's unlikely they've experienced meeting the repayments on a large liability before.

    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]

    Profile photo of ModonnellModonnell
    Participant
    @modonnell
    Join Date: 2012
    Post Count: 5

    aslon as it services it sholdnt bea problem , it is not uncommon for people with high incomes to live” well” so they usually have no problem showing servicing , especially when rates are as low as they are and there a nuer of products n th eno genuine savings category.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Sorry have to disagree you won’t get an unsecured personal loan for 10% of the purchase plus acquisition costs even if you do have a half decent income.

    Without Asset backing your scorecard will never get you over the line.

    Also only aware of 2 lenders that although will accept non gen savings allow for a borrowed deposit.

    Cheers

    Yours in Finance

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

    100% Investment Finance now available on selected properties. Email us for further information.

Viewing 11 posts - 1 through 11 (of 11 total)

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