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Viewing 8 posts - 1 through 8 (of 8 total)
  • Profile photo of Sammy88Sammy88
    Participant
    @jokerace56
    Join Date: 2015
    Post Count: 6

    Hi All,

    I can understand people may not like the idea, but for myself I have spent my previous years helping to pay my mothers mortgage since she is on pension, She accumulated debt while I grew up, being born into debt isn’t fun but now that its paid, I look to start helping myself. I looked into guarantor option but my mother doesn’t like the idea. I want to get an investment property and wish to start as soon as possible.

    So this bring us to “Personal Loan for Deposit and 0% credit card balance transfers”
    This question has been asked before and I have been reading that it can be done, the lenders may grimace while they approve your home loan application, but from my understanding as long as your able to satisfy repayments on both ends it may work.

    The question I have is how exactly is it best to go about doing this?
    Do you apply for a personal Loan and hold it in a savings account for at least 3 months so it becomes considered as genuine savings while you add extra savings each pay on top?
    If this can be done what cost other than a 10% deposit should my personal Loan cover?

    And Is it a good idea to transfer the personal Loan balance or part of, to those 0% for 16-20 month credit cards to reduce the overall interest you could be paying? as long as my budget gets the card balance paid off before the 0% term expires would it be a good idea?
    Or would simply waiting, then re-consolidating the personal loan into your mortgage be a better option?

    Kind Regards,
    Sam

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

    There are some lenders that will do a 90% loan without having to demonstrate genuine savings. However – I personally haven’t written a loan where the client’s use a personal loan to cover deposit/costs for a while….so not entirely sure if it will fly but can’t see why it wouldn’t.

    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 Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010

    Certainly possible – but a bit messy on your credit file. It’s just snowballing the issue to the future, as the deposit debt still needs to be paid back, and will be a drag on your borrowing capacity as time goes on.

    The best thing to do is focus your energy on saving for your own deposit.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Sammy88Sammy88
    Participant
    @jokerace56
    Join Date: 2015
    Post Count: 6

    Jamie, Corey

    Thank you both for your replies.
    I do think your right, saving the 10% deposit+Stamp duty is the better option.
    Based on my budget, saving 30-40k should take 2 years.

    I only worry that during this time houses can go up in price, and I may miss out on appreciation value of a property if i bought earlier.

    When I consider future advancement into a second investment, I can now see how the personal loan can impede my future prospects.
    A clear cut deposit will count as equity to help acquire a second investment sooner.

    Cheers guys,
    Sam

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

    Sam you would better off in going to 85% where a P/L wont be an issue.

    We launch No Deposit Housing Pty Ltd here in Qld in the next few weeks which is Australia’s only true 100% blended loan and has now received credit approval by over 6 major lenders.

    Will be available initially for O/O and eventually Investment.

    I don’t see the issue with what you want to achieve assuming you understand the higher rate on the P/L.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of TaylorChangTaylorChang
    Participant
    @scha9799
    Join Date: 2009
    Post Count: 234

    Hi Richard,

    It is exciting to know you are launch No Deposit Housing Pty Ltd.

    I got a few inquires in no deposit with good income in the last a few months.

    Looking forward to hear more about it

    Cheers :)

    TaylorChang | Finance Broker
    Email Me | Phone Me

    Home loan | Commercial loan | 0414 691 517

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

    Hi Taylor

    Yes very exciting i must admit.

    At the moment we get 1/2 enquiries a week from investors who have equity but maybe not enough to release and then if they can go to 90% and release it the LMI is ridiculous.

    That thrown in with the fact of the new home buyer the enquiry level is already high.

    Cheers

    Yours in Finance
    0-40 Properties in a decade. Ask me how.

    Richard Taylor | Australia's leading private lender

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

    Sounds good Richard

    If Richard’s system is not for you then you could possibly get your mum to repay you what you have lent her (will only work if she was paying extra off the loan). Get the loan done and then you could gift or lend back to mum. Another option is for a family pledge type loan.

    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

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