Need home loan advice

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Beauy420

Beauy420

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May 10, 2009
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I am 23 and looking to buy my first house. The house already has an accepted offer but I can match it because those people are overseas and the rough price is 360k. I currently have a 40k deposit so with mortgage insurance plus stamp duty I only have 20k which means I can really only get a loan of 340k. I earn enough money to be able to afford a mortgage of 360k so mt question is, is there any way to get around mortgage insurance or have it consolidated into my home loan?

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You can capitalise the mortgage insurance ie add it on top of the loan.

Different banks will have different maximum LVRs depending on your circumstances.

Looks like 95% maximum LVR including the LMI capitalisation is where all the big 4 are at for owner occupied properties now. For investment 90% maximum LVR.
 

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Beauy420 said:
I am 23 and looking to buy my first house. The house already has an accepted offer but I can match it because those people are overseas and the rough price is 360k. I currently have a 40k deposit so with mortgage insurance plus stamp duty I only have 20k which means I can really only get a loan of 340k. I earn enough money to be able to afford a mortgage of 360k so mt question is, is there any way to get around mortgage insurance or have it consolidated into my home loan?

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Click to expand...

Parent security guarantee is your go, if your parent's situation suits. Speak to your bank or broker and ask about this.

P.S. You sig combined with this post makes me laugh.
 
How much household income would you guy recommend as a good amount for a mortgage of 765k on a 30 year loan?
 
Hamingja said:
Depends on your liability position. Personal loans, credit cards, HELP debt etc.

If you are relatively liability free you could probably do it in on $150k. The more liabilities you have got the more income you are going to need.
Click to expand...

Ta,

Got no debts expect Help

Currently household income 200k but will reduce with kids.

Got a bit of extra cash on top of mortgage repayments. Best spent on paying down the mortgage or index fund?
 

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PM me if you still need help. I’d be happy to help. Let me know how you went if you’ve already done it all.
 
Could I get some quick advice

Girlfriend+ me are 50/50 renting buying, We have about 140K between us, looking at 450,000 in the Perth area,

Catch is, both studying, so while we made a combined 140k last year, and looking to maybe put 70k as a deposit and sit on the other amount as just back up Im looking at around a duel income if about 750 a week. Doable? My girlfriend starts uni this year and is stepping down from her role while im 6 months into a 3 and a half year course. Worst comes to worst i can take up a role (lesser then what i was at this time last year at my current company and go back on about 10K less a year.,


Y/N. What are some of the huge hidden costs bar Selling fee's ect?
 
Upgrayedd said:
Could I get some quick advice

Girlfriend+ me are 50/50 renting buying, We have about 140K between us, looking at 450,000 in the Perth area,

Catch is, both studying, so while we made a combined 140k last year, and looking to maybe put 70k as a deposit and sit on the other amount as just back up Im looking at around a duel income if about 750 a week. Doable? My girlfriend starts uni this year and is stepping down from her role while im 6 months into a 3 and a half year course. Worst comes to worst i can take up a role (lesser then what i was at this time last year at my current company and go back on about 10K less a year.,


Y/N. What are some of the huge hidden costs bar Selling fee's ect?
Click to expand...

There are no hidden costs if your loan contract is explained properly to you- find out about early termination fees as well.


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Upgrayedd said:
Yeah did some more research. Stamp duty waived. First homebuyers grant kicks in 5k. That insurance the bank whacks on people without 20% of the deposit is ghastly.

Just need to budget via my studies and it's doable
Click to expand...
That insurance isn’t the banks fee. It’s the insurer.
 
Put an offer down on a house in Perths inner eastern suburbs (12 minutes from Perth). Offer is above the Perth median house price and below the suburbs median.

I've got an LVR that won't go above 72% (my pre approved limit) but in all probabilities it should be well below 70% in all scenarios. My debt to income ratio will be around 26% and was looking for some advice about rolling what's left of my car loan into a mortgage and bringing it down to 23%.

It will save me three hundred dollars a month over the first three years but cost me seventy dollars per month after the car loan would have ended. The long run difference is negligible but the maths seems to point towards rolling the DTI down in favour of a slightly higher LVR as long as I pay that three hundred difference into my mortgage consistently for those three years.


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Eastern Rangers said:
Put an offer down on a house in Perths inner eastern suburbs (12 minutes from Perth). Offer is above the Perth median house price and below the suburbs median.

I've got an LVR that won't go above 72% (my pre approved limit) but in all probabilities it should be well below 70% in all scenarios. My debt to income ratio will be around 26% and was looking for some advice about rolling what's left of my car loan into a mortgage and bringing it down to 23%.

It will save me three hundred dollars a month over the first three years but cost me seventy dollars per month after the car loan would have ended. The long run difference is negligible but the maths seems to point towards rolling the DTI down in favour of a slightly higher LVR as long as I pay that three hundred difference into my mortgage consistently for those three years
Click to expand...
If your pre-approval limit is at that 70% mark of the purchase price, than you’ll be contributing 30%, this is an ideal LVR for the bank, but keep in mind you’ve contribution to purchase won’t include any Stamp Duty, government fees and legal costs. You’ll also have moving in costs and initial expenses of furnishing your new home.

To help you with the new budget, it would probably be in your best interests to consolidate the remainder of the car loan so you’re not having to make two repayments in a month. When you’ve settled in and comfortable with the repayments, than you increase that repayment by the amount you would’ve been paying into the car loan as if you’re paying it separately but at a much better interest rate (assuming your car loan is most likely well over 4%)

Hope that helps.
 
Upgrayedd said:
Could I get some quick advice

Girlfriend+ me are 50/50 renting buying, We have about 140K between us, looking at 450,000 in the Perth area,

Catch is, both studying, so while we made a combined 140k last year, and looking to maybe put 70k as a deposit and sit on the other amount as just back up Im looking at around a duel income if about 750 a week. Doable? My girlfriend starts uni this year and is stepping down from her role while im 6 months into a 3 and a half year course. Worst comes to worst i can take up a role (lesser then what i was at this time last year at my current company and go back on about 10K less a year.,


Y/N. What are some of the huge hidden costs bar Selling fee's ect?
Click to expand...
Don’t know what you ended up doing but if purchasing for $450,000 the ideal contribution the bank would want you to make is $90,000 to avoid LMI. On top of your 20% deposit, you’ll have stamp duty, government fees and legal costs so be prepared to forfeit abit more of your savings. Based on the info you’ve provided, it’s not the capital that you’ll have issues with but serviceability.

A loan of $360,000 will set you back approx $1,750 per month in repayments. Is that around the mark for rent? It’s most likely a little bit more but you’re better off paying a little more as you pay down your own mortgage than someone else’s.

Combined income of $750 a week with a loan of $360,000 (if you end up contributing 20% upfront) is stretching it and you might struggle to get a loan, but I don’t know your full situation to make that call.
 
Eastern Rangers said:
Put an offer down on a house in Perths inner eastern suburbs (12 minutes from Perth). Offer is above the Perth median house price and below the suburbs median.

I've got an LVR that won't go above 72% (my pre approved limit) but in all probabilities it should be well below 70% in all scenarios. My debt to income ratio will be around 26% and was looking for some advice about rolling what's left of my car loan into a mortgage and bringing it down to 23%.

It will save me three hundred dollars a month over the first three years but cost me seventy dollars per month after the car loan would have ended. The long run difference is negligible but the maths seems to point towards rolling the DTI down in favour of a slightly higher LVR as long as I pay that three hundred difference into my mortgage consistently for those three years.


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Click to expand...

Can you split the loan into 1) amount needed for the home and 2) amount needed to pay out the car loan. You can set the car loan split for 30 years to have a better chance of getting the loan approved due to lower minimum repayments. However, strong advise is to actually pay the car loan off over 3 years or so. Cars are a depreciating asset, and you don't want to be still paying it off long after the car is gone.
 
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