wanting to buy another house

Discussion in 'Loans & Mortgage Brokers' started by sauber, 9th Jan, 2016.

Join Australia's most dynamic and respected property investment community
  1. sauber

    sauber Well-Known Member

    Joined:
    26th Jun, 2015
    Posts:
    890
    Location:
    Get me down to funky town!
    My fiancee and i are looking to buy a property we are looking in townsville the house we'd be wanting to buy.

    I currently have my own house in melb and my fiancee are looking to buy one together

    The house i have atm is valued around 400k oweing 240k

    We' be wanting to buy something around 400k

    If anyone can help in how i can achieve this that would be great

    Im an apprentice electrician and my fiancee is a teacher.
     
    sauber, 9th Jan, 2016
    #1
  2. Jess Peletier

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

    Joined:
    18th Jun, 2015
    Posts:
    6,685
    Location:
    Perth WA + Buderim Qld
    Contact a broker - you'll need all your financial info and they'll be able to let you know how much you can borrow, and how best to structure the loan based on your plans and goals.
     
    Jess Peletier, 9th Jan, 2016
    #2
    legallyblonde likes this.
  3. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    1,658
    Location:
    Sydney
    Assuming the value of the property is $400,000 - pull out $80,000 in equity and ensure this is a separate loan account.

    Use this as a deposit for the new purchase. Do the numbers on the new purchase and see if its best to do the new purchase @ 80%, 85%, 88% or 90%.

    Using less deposit now will allow you to have more funds for future use.
     
    Shahin_Afarin, 9th Jan, 2016
    #3
  4. sauber

    sauber Well-Known Member

    Joined:
    26th Jun, 2015
    Posts:
    890
    Location:
    Get me down to funky town!
    I was told i can only pull out 17k of equity from bank...ill have to see why its so low. Its with NAB. I think cause bank val and re val are diff yeah?
     
    Last edited: 10th Jan, 2016
    sauber, 10th Jan, 2016
    #4
  5. Redom

    Redom Mortgage Broker Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    4,659
    Location:
    Sydney (Australia Wide)
    That 17k number is likely because of one of two things:

    1. Your borrowing power is maxed out with NAB. This may be unlikely if thats your only debt and there may be other ways to structure it to get around this.

    2. The valuation of your house provided by NAB is different to the valuation listed above (e.g. valuer has different opinion to REA or yourself).

    It may be a good idea to question NAB and work out where you stand. If they can't make it happen for you, someone with access to different lenders may have different solutions on the table to make it work.

    In terms of set-up - Shahin's provided the template for how to structure it.

    Cheers,
    Redom
     
    Redom, 10th Jan, 2016
    #5
  6. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,654
    Location:
    Gold Coast (Australia Wide)
    If your existing loans are under 80 %, and you didnt pay lenders mortgage insurance on the purchase, it may be worh looking at getting valuations from a couple of other lenders before application........

    Often NAB does Kerbside valuations on properties they already hold as security, and these are usually NOT on the money

    ta
    rolf
     
    Rolf Latham, 10th Jan, 2016
    #6
  7. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    1,658
    Location:
    Sydney
    Sounds like the $400,000 is a real estate valuation and the bank's valuation has come back around the $320,000 mark.

    I recommend ordering a few valuations (using different lenders and different valuers) to see if you can pull out more equity.
     
    Shahin_Afarin, 10th Jan, 2016
    #7
Investment Portfolio’s monthly returns