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Tips for mortgage newbie

Discussion in 'Property Finance' started by pelez, 12th Feb, 2016.

  1. pelez

    pelez Member

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    Hi guys

    im a newbie here and am looking at trying to get into owning our own home.

    At current. i am the only one who is working is wifey stays home with the little one. Have a personal loan of $15,000 for our 2 cars that we have and are currently renting a house at $440 a week.

    Would it be possible to apply for a loan under my name only?
     
  2. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Hi Pelez

    Maybe.

    It all depends on what your income looks like.

    Hit up @Rolf Latham who is a guru on the Gold Coast. He will give you good advice on what's possible.

    Cheers

    Jamie
     
  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Welcome

    A lot more data still needed like income and deposit size and source etc

    Ta

    Rolf
     
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  4. pelez

    pelez Member

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    Thanks guys for the reply.

    Currently i am on a salary of $64,100.00 and i dont have a deposit. At the moment, i am actually looking at what i can and need to do to move forward.

    Thank you
     
  5. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Talk to a broker about your specific circumstances. Simply stating some basic income figures and a few other details is not even remotely enough information to determine how much you can borrow and under what circumstances.

    Even if you can't do anything immediately, you'll have a better understanding of what you need to get in place to be able to move forward.

    I'll second Jamie's nomination of Rolf.
     
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  6. pelez

    pelez Member

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    Thank you peter. As stated previously, i am new to this so i need to get more information.

    Thank you
     
  7. Greyghost

    Greyghost Well-Known Member

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    I would assume your personal loan is related to one of the cars?
    In connection to getting a strategy to purchase an IP, I would be looking to get rid of car loans and personal loan altogether. Down size your car? Accelerate payments on car loans and personal loan.
     
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  8. pelez

    pelez Member

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    Thanks greyghost. Thats what i thought as well. Will look at that as well. Thank you
     
  9. York

    York Finance Broker Business Member

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    Some basic calcs seem to suggest it may be a bit tricky at this stage.

    Salary Net =50,000
    Rent = 23,000
    Remaining = 27,000

    Weekly Remaining= 520 approx.

    Less personal loans say 100 per week approx.

    =420 per week approx.

    You have 4 dependants as well and also other living expenses.

    I think as Greyghost said focus on paying down your debt and then look to start saving a deposit. Also perhaps the partner might start earning income later on. This will all help.

    At the moment I think it would be almost undoable.

    If your dream is to own a property then keep working at it and you will find a way when you're ready
     
    Last edited: 13th Feb, 2016
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  10. hammer

    hammer Well-Known Member

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    I'm not experienced enough for any financisl guidance, but from a well being perspective, ditching the car loan will be a great move.

    We got rid of ours and it genuinely made us happier.

    We now save tonnes more, can buy a better house and will only have one loan to target when we eventually do buy.
     
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  11. HUGH72

    HUGH72 Well-Known Member

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    Tricky situation, pay down non deductible debt, possibly rent somewhere cheaper first. Are you in BN? You can rent a small but reasonable place for 50 per week less.

    Is it viable for wife to work part time without incurring excessive day care fees? As the first 18,000 is tax free its the easiest money to make. Use income from wife's job to build a deposit quickly?
    The answers to these questions will tell you how much you both want it IMO.
     
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  12. Tranquilo

    Tranquilo Well-Known Member Premium Member

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    Try and pay that debt off first even $20 extra a week. It may feel hard at the moment but there's light at the end of the tunnel.
     
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  13. pelez

    pelez Member

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    thank you guys for all your input! i really appreciate it. I will focus and pay off our current personal loan as quickly as possible and save up. That will be our focus this year!

    Thank you all! i will however keep on reading in here and get things ready once i do save up for a deposit.
     
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  14. pelez

    pelez Member

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    We did come from a 3 bedroom townhouse but our family grew from 3 to 5 so had to move into a 4 bedroom and are paying a extra $100 a week from our previous rental. Staying in Upper Coomera Gold Coast
     
  15. sumterrence

    sumterrence Well-Known Member

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    Does your parents or your wife's parents own a property no matter if it is fully paid or not, provided you have enough servicing maybe you can look at a parental guarantee loan to support your initial deposit and any necessary cost associate with the purchase, so that you do not need to spend time save up for deposits.
     
  16. albanga

    albanga Well-Known Member

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    Whilst I agree paying down bad debt is important, I think its important to evaluate the opportunity cost of doing so.

    It will take you longer to save 15k than pay down 15k debt due to the decreasing interest but it also means you continue to have no deposit. If property prices continue to increase and you miss the opportunity to get in on the growth then you will be far further behind that the extra interest in the personal loan. Always remember the power of leveridge with home ownership.

    There is also servicing considerations but you would hope maybe a couple of pay increases by the time your deposit is sufficient would help overcome those.
     
  17. wombat777

    wombat777 Well-Known Member Premium Member

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    Since you have time up your sleeve, make sure you get a free credit report. Check that there are no adverse issues identified in the report. Once you are ready to apply for a loan, you don't want a lender to find anything that would cause them to reject your application.

    https://forms.mycreditfile.com.au/Apply/Personal/Credit/Step1.aspx?form=FreeCreditFile

    ( there may be other organisations that can generate a report, but the above was just from a quick google )
     
  18. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    A single pre-approval tells you that subject to finding a suitable security and not adverse changes, the bank is willing to give you the money.

    A second pre-approval doesn't add anything beyond that and is pointless.