Mochinbach

Hello!

Some of you may have noticed my searching random forums and asking stupid questions about buying houses.

I haven't actually bought one yet... BUT...
I have learnt lots about how it all works and what it seems to cost. I thought, in case there are others out there also looking for forum threads and asking much more sensible questions, I'd share that little bit of learning what I did with you....

As usual it's all to big for a forum thread... so it's here!PLEASE comment if you think I've got it wrong /right! http://images.ibsrv.net/ibsrv/res/sr...es/thumbup.gif

Mochinbach

Thanks to all those who have visited

coolerkingcooler

Seems pretty good to me. One thing that surprised us what that lenders take into consideration if you have children and also how many.

Think the cooling off period is good and I have preferred the system here for the house we bought.

Cheers,
Cooler

Mochinbach

That's good to know! I'm glad it worked out better... It all just seems a bit sudden!! lol Buy now, check it later, seems a bit scary to me but I can see the benefits in speeding it all up a bit

We don't have children yet, I guess we'll have that joy to come

jothefw

Well done - very good, clear advice for everyone in a similar situation.

My only question is about the "adding to mortgage stuff".

We went through a similar process last year and found out, basically we needed to save more. Because our advisor said we needed 10% or 15% and then add on an extra 6% for the stamp duty and other borrowing costs. Therefore needing 21% which is why we're saving like mad.

I know in the UK, it was added to the overall mortgage but certainly from the people (not very many) we've spoken to, it isn't?????

Makes a big difference that bl**dy 6% so if it could've been added I shall be very cranky with my advisor!

I suppose I should've taken 2nd opinions

Mochinbach

The only bit that would be added to the mortgage was the Mortgage Insurance. The rest we'd have to pay for from our savings

Andrew Williams

At the time your Adviser was probably right, a lot of Banks reduced their Loan to Vale (LVR) ratios due to the GFC.

However you should speak to him again as most lenders have now increased their ratios again and there are lenders now allowing 95% loans with the ability to add the mortgage insurance effectively allowing a 97% lend.

This means that you will only require around 10% in total, 5% deposit and approx 5% costs (stamp duty etc).

Lenders have a habit of changing policy as and when business needs change. There are also a lot of varying policies out there so do not take no for an answer initially as there could be other lenders that will take you on.


Regards


Andy