Regional VIC need Broker advice and clarification

Went to a mortgage brokers yesturday and left feeling a bit more confused when i went in. I'm a 25 (F) nurse, regional VIC, 56-60k annually. Saved 36k
since i started (Jan 2020). No loans except for hecs. I'm currently looking for land to build a house on. Block is around 170k, houses around 220k.
The broker felt from the start like he wanted me out of his office.

I'm wondering if this is a normal experience and am seeking some clarification.

He told me I wouldn't be eligible for the first home builders grant, but would be for the first home buyers but it doesn't count because it just covers GST.
Didn't clarify if it could go toward the deposit despite me asking.
Said my HECs would cause me to get knocked back but admitted it was the common denominator for his clients getting knocked back but didn't actually know if that was the reason.
Said don't bother going for a loan because I'd get knocked back and it would effect my credit rating.
He told me because I'm living with my fiance it would be classified as defacto, despite the fact I'm looking for a house for myself (fiance is a uni student).
He said I'm too young and should wait.
He said that my fiance should get a job and go on the loan.
He kept using terminolgy that I didnt understand and then when I asked to clarify he did a mediocre job at explaining it.
Insisted that I should see a different broker.
He didn't clarify if the deposit is in the value the bank offers or if it is on top of it.

He never went over what different banks could offer, just ANZ.

I found the whole experience confusing and disheartening. He didn't offer anything in advice except to go to a different broker (this time without the fiance) and to wait
because I'm young.

Could someone please clarify what he said to me, I feel like I'm in the dark. Is this a regular experience with a broker.

Thanks for any responses.

 

One would hope this isn't a regular experience. Sounds like this person has a bit of a problem with their 'bedside manner'.


Honestly I'm not an expert in the Homebuilder grant, but my understanding is lenders won't accept it as part of the upfront contributions. Best to assume that you won't get it and treat it as a bonus if you do. As a first home buyer you shouldn't pay any stamp duty. If you're building in regional VIC the grant will give you $20k when you start building.

At face value your total cost is about $395k (assume a little extra for other costs). You'd need to borrow roughly $335k ($35k your cash & $20k FHOG). You'd be borrowing less than 90% of the total value and even have a bit of surplus cash at the end.

My initial thoughts were that the servicing might be a problem, but running the numbers mentioned, this doesn't appear to be the case. There's potentially a few variables unaccounted for, but it does look like there's a way of making this work. Borrowing power might be over $400k, easily enough to cover what's needed.

Overall I think this is quite do-able. Unless I've missed something, I'd say it's actually fairly staight forward.

 

Thank you so much for the reply. What you said has definitely helped me understand it more.
Going forward I'm still a bit unsure about myself and there doesn't seem to be any other brokers in my area.

Is there a possibility I could go through you?

Thanks.

 

You're welcome to give me a call, happy to help.

 

I'm working today. Would it be okay if I give you a call tomorrow afternoon? Also I can manage to email some stuff beforehand if you need.
Thanks.

 

I'm sorry, but I'm not available on weekends. Like everyone else, I like having some time for myself and my family.

You can call as late as 6pm this afternoon though.

 

Wow what a nightmare of an experience.

Your questions are basic questions and any mortgage broker worth his salt should have been able to answer them without hesitation.

On the surface your application looks fairly straightforward.

Promise the whole industry isnt so inept.

Cheers


Richard