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Small bank loan for a uni student wking p/time

Discussion in 'The Buying & Selling Process' started by Justme-, 26th Sep, 2016.

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  1. Justme-

    Justme- Active Member

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    Hello

    Have you heard of this scenario?
    Say for a puchase for around $150,000 ( must start somewhere) and a 20% deposit.
    with a reasonable yield
    Loan to a uni student working casual self employed.

    Is it too unrealistic to approach the banks?
     
  2. legallyblonde

    legallyblonde Well-Known Member

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    Ask around. Bendigo bank accepted youth allowance as income whilst I was studying.
     
  3. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Yes it is possible - different treatments between part time and casual though.
     
  4. Justme-

    Justme- Active Member

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  5. Justme-

    Justme- Active Member

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    Oh ok and you got a mortgage thus as a student? cool
     
  6. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    If your income is sufficient to meet a lenders servicing criteria, you'll be able to qualify for a loan. Casual employment isn't a problem, neither is being self employed if you've got 2 years history and 1 (2015 or 2016) tax return demonstrating the income.

    Keep in mind, there's a lot more to servicing criteria than simply meeting the loan repayments. Talk directly to a broker about it.
     
  7. Justme-

    Justme- Active Member

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    Yes, always the same self-employment issue, but will try, thank you as well
     
  8. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    I recall the first loan I went for, almost 100 years ago now, I was a casual uni student. The NAB rejected me because I was casual. I just gave up on that unit off Oxford Street in Sydney - if only I went and used a broker I could have been rich now!
     
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  9. Cimbom

    Cimbom Well-Known Member

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    Such painful stories lol. My uncle was telling me about the house he sold in Newtown for 15k in the 70s :eek:
     
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  10. Justme-

    Justme- Active Member

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    Yes, I suppose we all have plenty of stories like this now ...unfortunately, well, some did better, I would think that you Terry with your job, would be in a good position now.. Were are you located?
     
    Last edited: 26th Sep, 2016
  11. Justme-

    Justme- Active Member

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    Hello at this time, Aussie Home loan :) did not exist (ie: the first m broker ??) ;)
     
  12. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    Big Ouch
     
  13. legallyblonde

    legallyblonde Well-Known Member

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    Correct. I was a full time student with consistent casual wages
     
  14. Justme-

    Justme- Active Member

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    I talked to the kid last night, his answer was: 'ok, will you manage the tenants ? ' and then the next day, this morning he told me he is starting to lose his hair .
     
  15. TMNT

    TMNT Well-Known Member

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    are the rates super high?
     
  16. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Normal
     
  17. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Not sure what you mean by this. The servicing criteria is the same as it's always been, which means assessment rates are 7%+. Product rates are also the same.

    There's also the cost of living that needs to be covered. Austudy (or whatever it's called now), wouldn't even cover the minimum living expenses assumed by the banks.
     
  18. Justme-

    Justme- Active Member

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    Gave figures to the broker, waiting. It all depends Peter, My son covers his exps with the youth allo and the rest goes to the bank.
     
  19. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Back in the day I funded myself through uni as well, but my living expenses were well below the minimum which the lenders will assume. It doesn't matter how low your living expenses are, the banks have minimum figures and this affects how much people can borrow.
     
  20. Justme-

    Justme- Active Member

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    True .... but we're all humans.. even the banker .... one day it is fine the next not... will see