I know this is kinda a stupid question but here goes. I recently stopped working after 3 years at my previous job. I am currently studying so have no income other than interest from my bank. I have a substantial amount of cash enough for 40-50% of a medium priced house in NSW. Now if i was to deposit that amount would they consider having a guarantor (parents) co sign with me even if i dont have a income? I would still like the house to be under my name though. Also i was wondering too, if i was to buy a unit would it be better to pay for it outright or do the normal 20% as i do plan to turn it into a investment property after 6 months. If i do the 20% i would have the same problem with no proof of income.
Do you actually have enough cashflow to be able to service a loan? If you don't it's kind of a moot point - no point taking out a loan if you can't afford to pay it back (or at least pay the interest costs) ??
Yes i will have enough cash flow to service the loan for about 1 year. Im planning to only be studying for the next 6 months or so, will find another job after that period.
Hi Zman, Go to a local mortgage broker and they will be able to discuss with you in more detail. Cheers, Dan
just say your buying the property for investment and it will have a tenant.. tenant income will be counted, and since you have 50% deposit, there will not be a problem.
Zman Answers in red I'd borrow 80% and leave the rest of the money in an 100% offset account. (That's if the lender agrees to give you a loan with an offset) Start by talking to a broker and/or the banks. Don't give up if the first lender says no, try the next 1. Cheers
So your advice to this man is to commit fraud. Heres my advice (which to me at least is nothing more than pure common sense) - 1. Finish your 6months of study. 2. Get a job. 3. Settle into said job for 6mths minimum. 4. Consider to buy a property (if you must).
what is fraud about it? he said he plans to make it a IP in 6 months time, I'm sure with all his cash, he will be able to cover his loan for 6 months. A bank doesn't ask when you plan to make it a IP. You tell them your putting down x deposit, this is the rental return potential, and you have no income. I know heaps of people who have purchased IP without jobs or simple casual jobs. When you present to the bank 20%+ deposit, then they are not so worried about your servicability. let alone 50%
