[ScottDavis]

http://www.domain.com.au/Public/Arti...=NationalIndex

Does anyone know what an Aus bank typically lends as a multiple of salary? In the UK it's typically 3.5 x single or 2.5 x joint I think. Is Aus the same?

[Mrs Jackaroo]

Originally Posted by ScottDavis http://www.domain.com.au/Public/Arti...=NationalIndex Does anyone know what an Aus bank typically lends as a multiple of salary? In the UK it's typically 3.5 x single or 2.5 x joint I think. Is Aus the same?

Its more means tested here. They take into account any children you have and lots of other things.

To give you an example - I was trying to work out how much we could borrow.

The first time I put in my husbands salary, made it a joint application and quoted on there that I was a 'homemaker'.

I then put the salary in as a sole application and he could borrow $50k more!! charming!!

[Downies]

Originally Posted by ScottDavis http://www.domain.com.au/Public/Arti...=NationalIndex Does anyone know what an Aus bank typically lends as a multiple of salary? In the UK it's typically 3.5 x single or 2.5 x joint I think. Is Aus the same?

I read somewhere (cant remember where) that they can go 5 times annual salary - bearing in mind they will take family situation into factor also.

Paula

[Downies]

Originally Posted by ScottDavis http://www.domain.com.au/Public/Arti...=NationalIndex Does anyone know what an Aus bank typically lends as a multiple of salary? In the UK it's typically 3.5 x single or 2.5 x joint I think. Is Aus the same?

check out www.anewlifeinaustralia.com on money matters part.

hope it helps

Paula

[tax_bloke]

Go to any of the major banks' web site - eg - www.commbank.com.au.

Look for tools and use "How much can I borrow"

[Vash the Stampede]

Originally Posted by tygwyn Its more means tested here. They take into account any children you have and lots of other things. To give you an example - I was trying to work out how much we could borrow. The first time I put in my husbands salary, made it a joint application and quoted on there that I was a 'homemaker'. I then put the salary in as a sole application and he could borrow $50k more!! charming!!

I'm guessing that this was an online calculator, not an actual interview with a bank.

Online calculators only give you a rough idea of how much you can borrow; they're not a true simulation of a mortgage assessment. The only reason it asked you for the number of children is because it would have used this information to work out a rough estimate of your outgoings.

In a real mortgage interview, you will simply be assessed on the balance of incomings vs. outgoings, current commitments and value of assets.

Please, please don't generalise about what Australian banks ask for in a mortgage interview on the basis of a few minutes with an online calculator. It's just not realistic.

[Mrs Jackaroo]

Originally Posted by Vash the Stampede I'm guessing that this was an online calculator, not an actual interview with a bank. Online calculators only give you a rough idea of how much you can borrow; they're not a true simulation of a mortgage assessment. The only reason it asked you for the number of children is because it would have used this information to work out a rough estimate of your outgoings. In a real mortgage interview, you will simply be assessed on the balance of incomings vs. outgoings, current commitments and value of assets. Please, please don't generalise about what Australian banks ask for in a mortgage interview on the basis of a few minutes with an online calculator. It's just not realistic.

Hi Vash

Yes this was based on an online calculator but a friend of mine actually had a financial advisor come to her house with a very similar outcome - not generalising Vash - the poster asked a question and I answered it based on mine and others experiences!

[TrickyTree]

Hi Scott

We were offered 5.8 x joint salary by the commonwealth bank a few months after landing with my other half in temporary employment and me on 3 months probation for a new job. :scared:

Judging by what other people have said on the forum this is not an exception it seems very easy to run up a huge mortgage so do your calculations very carefully.

Originally Posted by ScottDavis http://www.domain.com.au/Public/Arti...=NationalIndex Does anyone know what an Aus bank typically lends as a multiple of salary? In the UK it's typically 3.5 x single or 2.5 x joint I think. Is Aus the same?

[Shellfish]

It really depends on the lender, we were offered anything from 4 x up to 7 x our annual salary (through a broker)

[Vash the Stampede]

Originally Posted by tygwyn Hi Vash Yes this was based on an online calculator but a friend of mine actually had a financial advisor come to her house with a very similar outcome - not generalising Vash - the poster asked a question and I answered it based on mine and others experiences!

What do you mean by "a very similar outcome"? What was the outcome, and on what was it based?

[steve99]

Originally Posted by ScottDavis http://www.domain.com.au/Public/Arti...=NationalIndex Does anyone know what an Aus bank typically lends as a multiple of salary? In the UK it's typically 3.5 x single or 2.5 x joint I think. Is Aus the same?

As others have said it will vary between lenders, there was an article in the paper I saw a few weeks back, from memory I think they based it on a married couple and used an income of $65K PA, running 1 vehicle, 1 dependant, and $5K credit card limit, they could borrow between about $280K and $350K depending on the lender. so roughly 5 times.

I wouldnt take much notice of the average mortgages, I bet if that only included new mortgages in the last 12months it would be higher than that.

[Mrs Jackaroo]

Originally Posted by Vash the Stampede What do you mean by "a very similar outcome"? What was the outcome, and on what was it based?

A similar outcome to what I explained Vash! Initally they spoke about a joint application and then looked at a sole application - he was able to borrow more as a sole applicant!

[Vash the Stampede]

Originally Posted by tygwyn A similar outcome to what I explained Vash! Initally they spoke about a joint application and then looked at a sole application - he was able to borrow more as a sole applicant!

Sole applicant and single income, or sole applicant and dual income?

[Mrs Jackaroo]

Originally Posted by Vash the Stampede Sole applicant and single income, or sole applicant and dual income?

Sole applicant and sole income - wife is a home maker at the moment the same as me!

[Vash the Stampede]

Originally Posted by tygwyn Sole applicant and sole income - wife is a home maker at the moment the same as me!

So they offered more on the basis of a sole applicant with a sole income, than on the basis of a dual applicant with a sole income?

Did they explain why?