First Home Loan

Discussion in 'Loans & Mortgage Brokers' started by Tony101, 2nd Feb, 2020.

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  1. Tony101

    Tony101 Member

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    Hello everyone, I’m a long time lurker but first time poster. Just wondering if anyone can help me with their experiences.

    I made my first home loan enquiry with NAB loan specialist yesterday for around 55% of the purchase price. I work in stable full time employment but my pay is low (48k gross or ~43k net plus 10k Family Tax benefit)
    We have a 13 months old and wife is on maternity leave for another 11 months.
    (No debts, no credit card and rent free for the past couple of years as inlaws are traveling overeas)

    NAB says max they can offer now is ~425k loan or come back next year and apply for a joint loan and the loan amount can be upto 970k. We like to buy this year and settle in the new house while my wife is off work but the ~425k loan is about 50k short of what we like to get.

    Should we try another bank / broker or 425k is already the max they can offer us ?
     
  2. Trainee

    Trainee Well-Known Member

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    Repayments on the 425k loan will be 21k a year? And you are buying a place for 800k? Plus 5k for utilities, insurance, etc? The budget seems very tight. While your wife might go back to work there are then childcare etc costs to consider. Given the deposit you have, buying a little less house so that you do it at a higher LVR but keeping more cash in the offset might make sense. Or if you can live rent free for longer, just do that and still buy the cheaper PPOR later.
     
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  3. JasonC

    JasonC Well-Known Member

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    Tony101,


    Have you considered buying the house and renting it out for six months (if you still have free accommodation)? Then on the loan application you could include the rent you would receive for the new house.


    What are your long term intentions with this property? ie. would there be a possibility of upgrading in the next few years and keeping this one as an investment property? Do you know the difference between offset accounts and redraw? If not, search the forum and do some reading. Must information for all first home purchasers.


    Regards,


    Jason
     
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  4. Tony101

    Tony101 Member

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    Repayments of upto 25k a year will not be an issue even with one salary for us. For the past 2 years on average we only spend under $450 a week.

    Rent free is no longer an option. Inlaws are moving back in in couple of months.
     
  5. Tony101

    Tony101 Member

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    JasonC
    I was in US in 2007 during GFC and will never invest in property.
    We are just looking somewhere to live. Just was to find out if loan amount of 475k is possible?
     
  6. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    If you have allowances as part of your income, you may be able to get slightly higher...

    But generally, NAB is one of the more generous out of the mainstream lenders.

    You may be able to get marginally more using a non-bank. I suggest seeing a broker for sure - there’s lots of quirks that could make a difference.
     
  7. Lindsay_W

    Lindsay_W Well-Known Member

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    If that's influencing your thinking, can I ask why you want to buy property at all? Even if you live in it it's still an investment of your money, at the LVR you're talking about that's no small amount of cash.

    Do you think that amount is likely to change when you own a property and have to pay rates, water, electricity, insurance, maintenance etc?
     
  8. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Why Need Another Bank. .............. aka NAB ?

    I guess thats why you are here.

    Why the concern ?

    NAB is a big 4

    ta
    rolf
     
  9. Morgs

    Morgs Well-Known Member Business Member

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    Is she returning to work after 11 months & can the employer confirm this? Given you're looking at 55% LVR suggests you have substantial savings and could structure this to cover the maternity leave period and get into the new property. There are lenders that will consider this.
     
  10. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    The NAB certainly offers a maternity leave package. Either they're not eligible or the banker has put it into the 'too hard basket'.
     
  11. TAJ

    TAJ Well-Known Member

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    My son and daughter-in-law are looking now to purchase their first home after many years of renting and saving. They have a considerable amount saved as a deposit.
    What is the ceiling on the property value they can purchase still getting the FHBG?
    Will having a larger deposit help them or hinder them?
     
  12. Lindsay_W

    Lindsay_W Well-Known Member

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    Depends, what state? New or Existing Home?
    Hard to see how having a larger deposit would be a hindrance
    Plenty of info available on the relevant state gov websites
     
    Last edited: 3rd Feb, 2020
  13. TAJ

    TAJ Well-Known Member

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    Sunshine coast QLD.
    Existing home.
    If they have 450k, how much can they borrow and still get the FHBG?
     
  14. Lindsay_W

    Lindsay_W Well-Known Member

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    The FHBG is not based on borrowings, it's based on the purchase price of the property, as it's an existing home the FHBG is really only a Stamp Duty Concession up to a maximum purchase price of $550K The actual concession amount starts to decrease from $500K purchase price and is nil at $550K and above
     
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  15. TAJ

    TAJ Well-Known Member

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    Thanks for that.
    Is the ceiling level higher if they were to have a new home built?
    It would seem that you are not rewarded if you want to purchase a home for 850K, when you have worked hard and saved hard for years to put yourself in this position....
    You can't buy too much on the Sunny coast for 550k!
     
  16. Lindsay_W

    Lindsay_W Well-Known Member

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    $750K if building new
    Check your eligibility
    Would you rather be able to afford a home for $850K and not be eligible for the grant or only be able to afford something worth $500K and be eligible for it?
    I know which position I would rather be in...
     
  17. Alex91

    Alex91 New Member

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    Is it meant to be a reward or help for those that need it?