Credit rating in OZ
Nov 22nd 2004, 12:11 pm
#1
Moved out bush!
Thread Starter
Joined: Nov 2003
Location: Chittering WA
Posts: 1,093
Credit rating in OZ
I have been to see the mortgage guy at westpac bank, we had a long discussion about the UK and ended on the subject of credit ratings in OZ, he said there wasn't any!!!! You are either a good payer or a bad one, he said they only list the bad payers. I am a bit confused to say the least, after reading several threads in the past on here regarding the issue and the importance of gaining a good credit rating and getting your points up he says its a load of crap.
Anyhow onto mortgages in general he said as hubby is ABN self/employed we could have a mortgage, but we would have to prove we can pay it back. He said a self declaration of earning was a waste of time and suggested opening up a seperate account and from the moment you start working put what would be your mortgage payments in that account. He reckons if you could do that as well as pay rent it would be a dead cert you would get a loan. He said on 45K we would be able to get $200K and if we added to that interest from investments could get upto $270K. I only wanted 150K as we have $100K tied up in the bond we had to pay for extra points. So would end up only owing the $50K a few months further down the line.
If anyone has managed to get a mortgage as self/employed and really had an easy job getting it please let me know.
Jenny
Anyhow onto mortgages in general he said as hubby is ABN self/employed we could have a mortgage, but we would have to prove we can pay it back. He said a self declaration of earning was a waste of time and suggested opening up a seperate account and from the moment you start working put what would be your mortgage payments in that account. He reckons if you could do that as well as pay rent it would be a dead cert you would get a loan. He said on 45K we would be able to get $200K and if we added to that interest from investments could get upto $270K. I only wanted 150K as we have $100K tied up in the bond we had to pay for extra points. So would end up only owing the $50K a few months further down the line.
If anyone has managed to get a mortgage as self/employed and really had an easy job getting it please let me know.
Jenny
Nov 22nd 2004, 12:16 pm
#2
Joined: Dec 2003
Location: Hillarys, Perth
Posts: 3,973
Re: Credit rating in OZ
Yeah he is right about your credit history.... you only get a mark against your name if you do something wrong...
With regards to getting a loan there are plenty of companys out there now that do LOW DOC loans.... basically comes down to you saying that you can and will pay the money they lend you back. Sometimes it can be at a more interest but thats not always the case...
With regards to getting a loan there are plenty of companys out there now that do LOW DOC loans.... basically comes down to you saying that you can and will pay the money they lend you back. Sometimes it can be at a more interest but thats not always the case...
Last edited by Siren; Nov 22nd 2004 at 12:22 pm.
Nov 22nd 2004, 12:36 pm
#3
Guest
Posts: n/a
Re: Credit rating in OZ
Originally Posted by jensteve
I have been to see the mortgage guy at westpac bank, we had a long discussion about the UK and ended on the subject of credit ratings in OZ, he said there wasn't any!!!! You are either a good payer or a bad one, he said they only list the bad payers. I am a bit confused to say the least, after reading several threads in the past on here regarding the issue and the importance of gaining a good credit rating and getting your points up he says its a load of crap.
Anyhow onto mortgages in general he said as hubby is ABN self/employed we could have a mortgage, but we would have to prove we can pay it back. He said a self declaration of earning was a waste of time and suggested opening up a seperate account and from the moment you start working put what would be your mortgage payments in that account. He reckons if you could do that as well as pay rent it would be a dead cert you would get a loan. He said on 45K we would be able to get $200K and if we added to that interest from investments could get upto $270K. I only wanted 150K as we have $100K tied up in the bond we had to pay for extra points. So would end up only owing the $50K a few months further down the line.
If anyone has managed to get a mortgage as self/employed and really had an easy job getting it please let me know.
Jenny
Anyhow onto mortgages in general he said as hubby is ABN self/employed we could have a mortgage, but we would have to prove we can pay it back. He said a self declaration of earning was a waste of time and suggested opening up a seperate account and from the moment you start working put what would be your mortgage payments in that account. He reckons if you could do that as well as pay rent it would be a dead cert you would get a loan. He said on 45K we would be able to get $200K and if we added to that interest from investments could get upto $270K. I only wanted 150K as we have $100K tied up in the bond we had to pay for extra points. So would end up only owing the $50K a few months further down the line.
If anyone has managed to get a mortgage as self/employed and really had an easy job getting it please let me know.
Jenny
I just had to get my accountant to prepare a "dummy" set of accounts showing the potential earning capacity of my business, along with some references from clients saying how much work I had, a bit of creative accounting with assests such as furniture and electrical equipment, my wifes job, a $160K deposit and we could borrow $465K!
Still very surprised when I hear that self-employed people are having such difficulty getting a mortgage.
The big deposit made a difference, but the rest was just a case of telling them what they wanted to hear. They wanted to know we could cover the payments so we showed them that we could.
Last edited by owieb; Nov 22nd 2004 at 1:24 pm.
