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casual teacher after a home loan

Discussion in 'Property Finance' started by Al7, 17th Mar, 2016.

  1. Al7

    Al7 New Member

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    I was living and working in the UK as a teacher for the past year and just got back in December 2015. Before I left Australia i purchased a unit, Off the plan with pre approval, completion was meant to be in late 2016, giving me enough to time to return to Australia and find a full time teaching position. however, now i've been told the Unit will be completed at the end of this month. I am currently working as a casual teacher and started at the beginning of the school year- February 2016, therefore i don't have a long work history in Australia to apply for a home loan nor do i have a 20% deposit. I did put down a 10% deposit before i left though.
    I want to know what my options are as a casual teacher with 2 months work history in Australia and a 10% deposit. I am not being approved right now because of this. How can i now qualify for a loan? What can I do if I don't qualify for a home loan or an Investment loan? Will i loss my deposit?
     
  2. legallyblonde

    legallyblonde Well-Known Member

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    CBA generally only want a three month average income for casuals.
    Any chance you can organise to settle later?
     
  3. Al7

    Al7 New Member

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    thanks, yes i've asked for an extension on settlement. They are still unclear on what month settlement will be, either April or May. I'm not sure that is enough time. Especially with school holidays in April, will that be counted?
     
  4. HUGH72

    HUGH72 Well-Known Member

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    Best to call a broker tomorrow and see what your options are rather than trying to do it yourself.
     
    Last edited: 17th Mar, 2016
  5. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Casual its CBA by far.......... but understandably hard and fast on the 3mths ( most lenders want 6 to12mths)

    ta
    rolf
     
  6. York

    York Finance Broker Business Member

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    Which lender is refusing you? You need to find a broker now. You're timing is very tight. Looks like CBA could be your best chance. A respected broker has replied to you above. See if @Rolf Latham can help you. He is a great broker.
     
  7. albanga

    albanga Well-Known Member

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    The 10% deposit may not be an issue if the property has increased in value.
    But failure to settle can definitely mean a loss of deposit and potentially more if the vendor/deceloper wanted to pursue it.
    Get a good broker ASAP.
     
  8. Simon Moore

    Simon Moore Mortgage Broker - Melbourne Business Member

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    Teachers Mutual will also do 3 months casual on non-LMI loans (aka borrowing less than 80% of the property value).

    I had assumed 3 months casual would apply only to non-LMI loans, but from what I can see you can do it with LMI! (this surprised me) I have sent an email to Commonwealth's credit team to check for you ;) I'll post once I get a response.

    If you are only doing casual work you may have issues borrowing enough money too, get onto a broker ASAP. If you can hassle the parents to lend you that extra 10% or borrow some of their equity it's going to help.

    Might also want to think about renting the place out for a year, that way the rent can be used when calculating how much you can borrow.
     
  9. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    CBA definitely do 3 months casual right through to 95% LVR without issue - definitely the best fit for short term casual jobs.

    Being OTP, do you have any idea what the properties value is at - ie is it what you've paid, more or less? Last thing you want is to be in a situation where you think you *only* need ~10%, and then find a shortfall. Likewise you might be a situation where you're effectively at an 80% LVR, if you've bought well. :)
     
    Simon Moore likes this.
  10. A Jeremy

    A Jeremy Active Member

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    I asked my manager at BOQ about the three month rule I'd heard about - I've always been self-employed - and they said that it wasn't three months they wanted. You just have to not be on any sort of probation and have a contract in place. As I said, it didn't apply to me so I didn't pursue it further but those were their words.


    Jeremy
     
  11. Al7

    Al7 New Member

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    I have a broker, they are looking at TMB, they are just not communicating enough information to me. The value of the property has gone up by 50K based on the current selling price of same units in that building.
     
  12. albanga

    albanga Well-Known Member

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    Seems encouraging but "selling price" OR "sold price". A valuer won't care how much they are selling for, they care about what comparables have sold for.
     
  13. Simon Moore

    Simon Moore Mortgage Broker - Melbourne Business Member

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    Confirmed by Commbank, LMI available on 3 month casual.
     
  14. Al7

    Al7 New Member

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    Thanks Simon!
    Albanga- it is the selling price, some have sold but can't confirm they were at that price.
     
  15. Simon Moore

    Simon Moore Mortgage Broker - Melbourne Business Member

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    Do you know the address of the ones that have sold? Your broker can (I would hope) pull the sales history for those properties. If you don't know the addresses, they can get you a property report that includes comparable sales in the area, hopefully it will pick up the sales you are interested in.