Unconventional finance ideas

hi there guys

Just looking for any out the box ideas here.

I’ve been approved to purchase a PPOR. Nab will only lend me $740k and I have 310k cash to cover the rest. With stamp duty and legals I’m looking at purchasing a house for 1 million possibly stretch it to 1,030,000.

There is a house I really like that is available for 1.1 so I’m about 70k short. My finance is totally maxed out and I really want to go for this house.

Other than borrowing from family or friends can anyone suggest any ideas?

Cheers josh

 

You really want to stretch that much for a ppor?

 

Some ideas:
* Negotiate the price to within your price range.
* Move on to another property that is within your price range.
* Get a second job to increase your serviceability (you'll probably need to wait 6 months before that's acceptable).
* Find a lender that is more generous than the NAB (there's probably a few, but it will come at a cost).

 

Get in touch with a good broker to assess all banks and options. You'd be surprised the difference it possibly could make.

 

try a different lender

 

Yes

 

It depends on your specific circumstances but often there are lenders that can provide more borrowing capacity than NAB.

 

Try with Good Brokers. First Mac or Bendigo bank used to provide with the credit facillity to cover the short fall at slightly higher interest.

 

Look at a different lender.

Having said that - it goes without saying - only borrow what you can afford.

Cheers

Jamie

 

Just a bit more info.

Im self employed and went through a lot of pain to get this loan approved so I’m not keen to go through another approval again. Just looking for other ways to secure a further 70k.

Maybe sell an organ ...lol

 

It'll take you about 15 minutes to complete a brokers fact find, then email it to them along with your tax returns to verify the figures.

From this, they'll be able to give you initial guidance to determine if it is possible for you to borrow the money you want. Us brokers aren't keen to lodge applications when we don't believe they'll get approved.

 

You are 2 ways
Convince them to lender you more, and or
Borrow elsewere

 

If you want a solution, try Resimac - you'll get the extra borrowing you need and the rate will be sharper too. It'll get you more than the ~$70k you're looking for.

There are some tradeoffs to consider - speak to your broker about how the offset works, how they bank, etc. Will need to consider your tax returns over two years before crystallising numbers, etc. Broker should be able to do that all with you.

Dont submit any application with anyone else for now - you can get a sense of what's realistic and possible before submitting any application.

May be worth letting anyone you work with the full history with NAB - full context will help avoid any landmines beforehand.

 

Try with "Rate Setter" Interest rate will be very high though. I would not go that desperate for the PPOR Loan. Just lower the expectations and buy some thing you can afford.

 

Ask the vendor for a $70k price reduction