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First post :) First home buyer (Finance)

Discussion in 'Property Finance' started by youngbuck, 24th Sep, 2016.

  1. youngbuck

    youngbuck Member

    Joined:
    24th Sep, 2016
    Posts:
    5
    Location:
    Australia
    Hi guys, long time lurker since the Somersoft days, first time poster (please be easy on me lol). I am looking at buying my first property. I have worked my butt off and managed to scrape together a $60K deposit. (I don't have the luxury of an inheritance or guarantor :))

    My choice of career has started to pay dividends over the last 2 years. I am on a base income with a bonus structure attached to this. (Base 110K, average income over the last 2 years circa 187K - Minimal debt). But as we all know commission it is never guaranteed.

    I am hoping to enter the market asap before things get out of reach. I am a newbie and would greatly appreciate your advice and feedback on what my maximum borrowing capabilities are?

    Cheers YB.
     
    Last edited: 24th Sep, 2016
  2. tobe

    tobe Well-Known Member

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    18th Jun, 2015
    Posts:
    905
    Location:
    Melbourne
    If you haven't got any other liabilities your capacity is pretty good. The decision is more around what sort of LVR you would like to go to, how much lmi you would like to pay. It's pretty cost effective at 88% and under $500k, but obviously depends on the purchase price your interested in.
     
  3. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,787
    Location:
    Perth WA
    It will depend on if you're buying a home or an IP. Your deposit will go further for a PPOR most likely due to stamp duty concessions, but your servicing will be higher for an IP as you can include rent for servicing.
     
  4. youngbuck

    youngbuck Member

    Joined:
    24th Sep, 2016
    Posts:
    5
    Location:
    Australia
     
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