Newbie FHB help please:-)

Discussion in 'Loans & Mortgage Brokers' started by krusty900, 10th Jun, 2019.

Join Australia's most dynamic and respected property investment community
Tags:
Page 1 of 2
  1. krusty900

    krusty900 Active Member

    Joined:
    4th Jun, 2019
    Posts:
    34
    Location:
    Hobart
    Hi.

    Long time reader,first time poster. Hoping for some guidance:)

    Looking at purchasing a first home over the next little while with my partner.

    Me-90k/year before tax

    Partner-55k/before tax

    Deposit 125k
    (25k saved in last 6 months,100k gifted from parents)

    Currently paying 385/week rent and continuing to save 1k/week.

    No debt.

    About 65k in some shares,which if sold would be a 65k loss(yes,they have halved,don’t ask:))


    Just wondering what is best to do next....I have a broker contact who is interstate. Do I contact them and get some kind of pre-approval?ask for what they think is the best option for a basic no frills redraw loan and for one with an offset option?

    Or is there no point doing any of this until we find somewhere we may want to buy?


    Any help/advice would be great:)

    Cheers krusty
     
    krusty900, 10th Jun, 2019
    #1
  2. Trainee

    Trainee Well-Known Member

    Joined:
    24th May, 2017
    Posts:
    10,346
    Location:
    Australia
    Mortgage broker first. Whats the point of looking and liking something you cant afford to buy?
     
    Trainee, 10th Jun, 2019
    #2
  3. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

    Joined:
    18th Jun, 2015
    Posts:
    6,685
    Location:
    Perth WA + Buderim Qld
    Hi Krusty,

    Welcome to the forums!

    Get in touch with your broker - it's always good to know well beforehand if there's any quirks that need rectifying before you put an offer on.

    It would pay to read the forums a bit more - for your first home, no-frills with a redraw is usually not the best option, particularly if it might become an investment property one day.

    You'll do best to think long term on this one, especially if you'll be paying LMI.
     
    Jess Peletier, 10th Jun, 2019
    #3
  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,653
    Location:
    Gold Coast (Australia Wide)
    I think that is a something you would be better to determine using your goals.

    A good question to help with that may be........... will this be the home I will be in till I go to the retirement home, or will I possibly upgrade from this one, buy a new PPOR and keep this as an investment. A lo rate basic redraw loan may cost you 10s of thousands if its the latter

    Different loan structures for diff specific needs.

    ta

    rolf
     
    Rolf Latham, 10th Jun, 2019
    #4
  5. jazzsidana

    jazzsidana Well-Known Member

    Joined:
    27th Jan, 2018
    Posts:
    459
    Location:
    Melbourne
    Good position.

    Work closely with your broker on numbers first..

    And worth discussing the option of renting where you want to live. And maximizing your return by purchasing investment property if personal circumstances allow.


    Cheers,
     
    jazzsidana, 10th Jun, 2019
    #5
  6. krusty900

    krusty900 Active Member

    Joined:
    4th Jun, 2019
    Posts:
    34
    Location:
    Hobart
    Hi. Thanks for the replies:)

    I know things can change in the future, but cannot imagine that what we end up buying would ever be turned into an investment property/rented out. But have a bit of an understanding of the tax advantages of offset/redraw if that ever happened.i see how an offset is the safest, just in case.

    Great:)I will fill out the forms the broker sent through and go from there. Looking at avoiding lmi so using the online calculators Etc seems like we could borrow/service around 350-400k loan without any difficulties..?

    Also is there any issue with the broker being interstate(nsw) whilst we in tassie?
     
    krusty900, 10th Jun, 2019
    #6
  7. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,653
    Location:
    Gold Coast (Australia Wide)
    As long as that works for you and the broker thats fine

    Many brokers work across the country

    ta
    rolf
     
    Rolf Latham, 10th Jun, 2019
    #7
  8. krusty900

    krusty900 Active Member

    Joined:
    4th Jun, 2019
    Posts:
    34
    Location:
    Hobart
    Awesome thanks
     
    krusty900, 10th Jun, 2019
    #8
  9. Lindsay_W

    Lindsay_W Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    5,065
    Location:
    QLD/Australia Wide
    If you're talking about the general online calculators, they are not a true servicing calculator and often very misleading, ask the broker what your borrowing capacity is instead of relying on those
     
    Lindsay_W, 10th Jun, 2019
    #9
  10. krusty900

    krusty900 Active Member

    Joined:
    4th Jun, 2019
    Posts:
    34
    Location:
    Hobart
    No worries. Will do.
    I’m guessing the online ones are more lenient than what actually goes on?
     
    krusty900, 10th Jun, 2019
    #10
  11. Lindsay_W

    Lindsay_W Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    5,065
    Location:
    QLD/Australia Wide
    Yep exactly, they're just taking very basic info and spitting out a figure that is in no way to be relied upon.
     
    Lindsay_W, 10th Jun, 2019
    #11
  12. krusty900

    krusty900 Active Member

    Joined:
    4th Jun, 2019
    Posts:
    34
    Location:
    Hobart
    Thankyou:)
     
    krusty900, 10th Jun, 2019
    #12
    Lindsay_W likes this.
  13. krusty900

    krusty900 Active Member

    Joined:
    4th Jun, 2019
    Posts:
    34
    Location:
    Hobart
    Hi again.
    Just hoping for some help again, before I send forms to my broker.
    Have been doing a little bit of research and was wondering if anyone knows how the Macquarie transaction accounts linked to their offset works.
    i.e. obviously they would all have to be in my/partners name, but are transfers Etc between all of them easy/able to block transfers Etc?

    Just wondering as parents are willing to help somewhat and could help somewhat more/be more happy too if they could put some money into offset that we could set up that only they had access to?
    (Hope this make sense)
     
    krusty900, 16th Jun, 2019
    #13
  14. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,653
    Location:
    Gold Coast (Australia Wide)
    This may be a good question for your broker.......... will be interesting to see if it cna be done

    They offer the opposite :) a 3rd party viewing and taking control of transactions

    ta
    rolf
     
    Rolf Latham, 16th Jun, 2019
    #14
  15. krusty900

    krusty900 Active Member

    Joined:
    4th Jun, 2019
    Posts:
    34
    Location:
    Hobart
    I guess it wouldn’t be that difficult....set up another account,give parents card that comes with it,they can cut it up,set own passwords Etc.
    But I guess somewhere we would still have a if you like ‘master control’ of anything linked to mortgage, so maybe can’t be done.
     
    krusty900, 16th Jun, 2019
    #15
  16. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,653
    Location:
    Gold Coast (Australia Wide)
    In the end, the master control needs to be with the borrower, not a 3rd party, and you may actually be in breach of your various agreements with the funder if you hand off stuff to 3rd parties - I know that we all do it all the time ..................... just sayin

    All it needs is for the borrower to call up, ID themselves and reset the access, so if that was my 27 cents in your account , id say thats not good enough :)

    ta

    rolf
     
    Rolf Latham, 16th Jun, 2019
    #16
  17. krusty900

    krusty900 Active Member

    Joined:
    4th Jun, 2019
    Posts:
    34
    Location:
    Hobart
    Great. Thanks for the reply:)
    Guess it depends how trusting they are of me and their 27c:)
     
    krusty900, 16th Jun, 2019
    #17
  18. krusty900

    krusty900 Active Member

    Joined:
    4th Jun, 2019
    Posts:
    34
    Location:
    Hobart
    So I’ve managed to get my act together and send my forms off for some sort of pre-aprroval. waiting to hear back.

    Looking to borrow circa 400k probably get offset as a possible lump sum from selling some shares in the next year. Really like the ease/idea of multiple offsets.

    Just wondering what names my broker should be mentioning to me?

    From my research Macquarie looks pretty appealing? 3.54 multiple offsets Etc...

    Any help would be greatly appreciated
     
    krusty900, 22nd Jun, 2019
    #18
  19. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,653
    Location:
    Gold Coast (Australia Wide)
    We know nothing of your real needs and resources and risk profile.

    Sorta like asking what's a good car, some will say a 2 seater sports car another will say a 9 seater van.

    Loans ain't loans

    Ta



    Rolf
     
    Rolf Latham, 22nd Jun, 2019
    #19
  20. krusty900

    krusty900 Active Member

    Joined:
    4th Jun, 2019
    Posts:
    34
    Location:
    Hobart
    No worries Rolf. I understand. Probably a bit hard for a forum.
    Will just be looking for an Owner Ocupier loan. Unlikely to use as an investment property, depending on what/if when something suitable popped up.
    Probably about as a vanilla purchase as there could be.
     
    krusty900, 22nd Jun, 2019
    #20
Page 1 of 2