killamarsh

I have made several attempts with different oz banks to find out how they work out how much they are going to lend. For example, 2.5 times your salary. I keep getting the ' you need to apply' and it goes on individual circumstances. Very unhelpful. They must have some sort of formula.

What is your experience of getting a mortgage in oz.

What banks are cautious, and which ones throw credit at you? I ask this as I have heard several times that some banks are only too willing to lend money.

joeyballantyne

hey killamarsh

i was offered around 6 times my salary. by commonwealth bank in caloundra - they must be wanting to give it away! gotta say tho that the service is shi*e - prob just that adviser.... but you'll notice that if you check out other posts related to doing business in oz. sometimes its like trying to get sh*t out of a rocking horse. still worth you checking em out anyway - i reckon they'll say 'you have to apply'...

NickyC

It's not worked out on a specific salary times 'x'.

It's worked out on how much you can afford to repay. Two people on the same salary might have completely different expenses, existing commitments, family sizes etc. and all this is taken into account when you apply for a Home Loan.

Banks are not allowed to lend you more than you can afford to repay. They've been in trouble in the past for lending to daft people who apply for whopping loans and who conveniently forget that they should retain enough cash to feed their kids - "the evil banks MADE me have this loan".

When you apply for a loan you have to tell them how many dependents you have, what your existing commitments are etc and then they work out how much you have left over that could service a loan.

diddy

Try ANZ.com

They have a good mortgage calculator that allow's you to put in salary, monthly outgoings and so on. It's pretty quick to do.

Paul.

TrickyTree

Prepare to be very scared as we were offered around 5 or 6 times our joint annual salary which would have resulted in a massive repayment. :scared:

We eventually took out a mortgage which was twice our combined salary be very careful and do all the calculations as they will throw fistfulls of cash at you.

TT

matt-and-jenny

Yeah, check out the mortgage calcs - there's one on realestate.com.au aswell

They were prepared to throw loads of money at us aswell - and we were 1st home buyers! We ended up borrowing about 100k less than what we were offered - I don't know how people cope when they borrow the max...

annqldau

Must admit I was amazed at how much HSBC was willing to lend us when they got up to $7000,000 and showed no signs of stopping I said whooo!!! don't tell me more as have no intention of going that high.

Plus where UK tends to lend on 25 yrs this lot lend on 30 yrs as a norm very easy to get your self in too deep I think.

Saying that hopefully we are going to ask for one in next few months so should have a definate answer.

diddy

Do you mean $700,000?

thebears

Makes you wonder about the property growth over last 5 years then doesn't it? - With a majority of sales done through auctions which, are highly emotive I have real doubts about the stability of the current property market.

Nicky C has made some great points I would just add that when they ask about your credit cards they take the limits and assume if you max them out what the minium repayments will be ie 3 or 5%. There would also be more "daft" people out there than the banks would like. Its interesting to see how many first home buyers still have bean bags in the lounge, eat beans on toast, sleep on hand me down linen on lilos. (Dont take specific examples too heart - but you get my drift).

annqldau

The other thing is they all seem to work on 30 yr mortgage so we would still be paying at 70yrs of age... :scared: :scared: :scared: .

Think they must work on you selling up and going into retirement village before then.

Trying to steer clear of auction buying for very reasons you say.

NickyC

Average life of a Home Loan is still only 7 years - most people move on by then or have paid the majority off.

Most Australians I know try to pay them off as soon as possible - there wouldn't be many people who are still paying off their original home loan after 25 years, let alone 30. You save a squillion in interest by paying it sooner - none of our mortgages have ever lasted more than 5-6 years before we've moved on or paid it off.

NickyC

In Sydney, houses in the first home buyer suburbs and less desirable areas are still mostly sold via private treaty.

It's the more expensive areas that have a lot of auction sales - people who buy these properties are not usually first-time buyers and in many cases are not relying on a mortgage to get them through.

thebears

Have noticed a large number of sellers in the outter suburbs listing for auction to sell as quickly as possible.

annqldau

Sell in 5-6 yrs maybe otherwise I don't think I can crack a 30yr mortgage off that quick...LOL.

Vash the Stampede

Mortgage offers are always qualified by your personal circumstances. After all, there's no point in offering somebody 6 times their salary if their outgoings are virtually equivalent to their income.

My bank offered me 90% of the value of my house (which was just under three times my salary.) Combined with the $7,000 grant and a tiny deposit I had scraped together, this was more than enough to get the ball rolling.

Banks are understandably reluctant to take a chance on you unless they have some idea of your financial situation. Arrange an interview, put your case to them and take it from there.

I wish you all the best.