Can you get a mortgage if you are a contractor?
Jun 27th 2008, 6:36 am
#16
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Joined: Jan 2006
Location: Perth, WA
Posts: 1,376
Re: Can you get a mortgage if you are a contractor?
If you don't mind me asking, how much did you put down in terms of percentage of the mortgage?
Indeed I'm getting the impression that putting 'enough' money down is what's necessary to grease the skids. The golden question is, then, how much is required? 5%, 10%, 20%? Is there a magic threshold that you need to meet or exceed before mortgage lenders will foork out the cash?
- CDM
Indeed I'm getting the impression that putting 'enough' money down is what's necessary to grease the skids. The golden question is, then, how much is required? 5%, 10%, 20%? Is there a magic threshold that you need to meet or exceed before mortgage lenders will foork out the cash?
- CDM
Often there is a trigger point which varies between banks and different types of property and location. If you want more than a certain LVR [say 90%] then the bank will want mortgage insurance which isn't cheap at all and can still leave you being sued by the insurance company themselves.
Last edited by hoofie2002; Jun 27th 2008 at 6:37 am. Reason: Bad Spelling
Jun 27th 2008, 6:41 am
#17
Has left the building
Joined: Mar 2007
Posts: 4,079
Re: Can you get a mortgage if you are a contractor?
It varies between lenders but I would have thought at the moment you would want at least 10% as a deposit, 20% would be much better. The lower the LVR [loan to house value ratio] the happier the bank will be. Obviously if you are putting down 40-50% as a deposit, the banks exposure is much lower and they will be happier.
Often there is a trigger point which varies between banks and different types of property and location. If you want more than a certain LVR [say 90%] then the bank will want mortgage insurance which isn't cheap at all and can still leave you being sued by the insurance company themselves.
Often there is a trigger point which varies between banks and different types of property and location. If you want more than a certain LVR [say 90%] then the bank will want mortgage insurance which isn't cheap at all and can still leave you being sued by the insurance company themselves.
Longer term contracts ie 6 months plus will hold you in better stead than a week to week short term stint.
REgarding credit history - forget raising debt to get a record -things work differently in Oz, they only record adverse credit history so you will never get a better record than when you first arrive.
Jun 27th 2008, 6:47 am
#18
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Joined: Jun 2008
Location: Sydney, Australia, but home to EU in 2009 for good!
Posts: 514
Re: Can you get a mortgage if you are a contractor?
But my Mum has a mortgage with them (she is self employed contractor) and has had no problems, most of her friends also have one with them, it was also the only bank that would give her a mortgage, and she has a decent rate also (she got the mortgage before I worked there). Most of my colleagues there had mortgages with them (obviously, lol).
They deal with a lot of low doc, self employed, contractor, new arrivals etc, so it’s pretty straight forward and they are a good bank to have a mortgage with.
Here is their website anyway if you want to have a look.
http://www.macquariemortgages.com.au/
Good Luck.
Mikey
