Maximum Loan i can get approved with limited upfront payment

Hi All,

Thank you starting to start reading my post first of all. I have been struggling a bit in last few weeks/months on a decision to buy a property (if i could). I started doing all researches, spoke to a MB and banks but i was not able to get a clear idea of what kind of property price i could look at. The hard limit i have is that i currently have about 55 ~60K with me in form of cash that i can put towards property buying. I am looking for some answers if based out of your experience how much with these below conditions, as to what the target price of a property i can buy:

Loan Affordability : Upto 950K as calculated by a MB, both me and wife work and earn decent income but anyways my cas at hand would limit me borrowing this much anyways

Cash in Hand : 57K in bank for last few months that i can show as long term savings

What i am targeting : A new house Land package upto 750K, to save on stamp duty as i wont have enough if i buy established home. I am also open to apartments if i cannot afford a free standing property with my situation.

Other details : First Home buyer, NOT a citizen ( I am a PR Holder), looking to buy PPOR but would likely rent out my property after 6 months and rent closer to CBD. Married, with a little one.

As you can see, i am trying to do the math backwards and cant wait to save more and but in next 1-2 years. This whole property market freaks me out as it keeps getting more unaffordable. So am hoping to use what i have now and buy something to be IN the market.

Appreciate your help and comments guys.

 

Hey buddy,

Majority of the lenders out there will lend you up to 95% Inc LMI, some may go a little higher then that.

Since you have a MB you should fully utilise
their services, but if you want to try work it out yourself, then you would look at the LMI calculator on the Genworth website to see how much you can go up to with your current savings without the need to pay stamp duty

 

I would personally re-think if now is the best time to buy, talking about buying an apartment or house and land package just to 'get in' raises flags for me (FOMO is real) and might not be the best idea for you. You mention you could move out after 6 months and rent where you want to live, so treating this purchase as Owner Occupied when in reality is an investment, it's possible you could do better investing somewhere else entirely, for example, interstate.
Have a good think about it, also ask your mortgage broker to run some funding tables for you to show you what you can afford to buy with your current level of savings.