Good on ya mate, but I wasn't trying to psychoanalyse anybody or suggest that you were smug (apologies if that was how my post came across) - merely trying to be philosophical, as close friends of ours are also currently in a 'stick or twist' situation similar, it would seem, to your own

Cheers

As they say over here "No worries"

Thats true buying a house is a struggle for a while, but the real cost of your home loan will go down with time due to inflation and paying off the capital.
If you stay renting you will be saving money in the short term but rents are going up with at least the rate of inflation.

[QUOTE=tictac;5465206Living 'on the breadline' and missing out on 'the fantastic aussie lifestyle' in order to be able to call oneself a homeowner does not sound like much fun and is surely at odds with most people's reasons for moving here in the first place.[/QUOTE]

Hi Mandy,

Of course it is possible to obtain a 100% mortgage, but generally the banks prefer that you have a deposit.

There are only 3 criteria for getting a home loan...

1. Income
2. Deposit
3. Good credit

I assume 3 is a given

Generally speaking you can get a home loan if you meet 2 out of the 3. Obviously, the higher the deposit, the less the risk for the bank and there is less emphasis on income... and visa versa.

If you are on good incomes and depending on the size of the loan then there is no problem from the point of view of obtaining the loan. You will have to make the judgement whether it is worth waiting or getting on the ladder now (remembering that you will have to pay costs + mortgage insurance which can be added onto the loan) based on future growth in house prices.

And as for avoiding mortgage brokers... while it is true and unfortunate that there are some dishonest ones around, a good one should and will find the best product based on your circumstances. Obviously talking direct to the banks you are going to get biased advice... and you will be surprised how many bank employees don't even know their own products!

I wouldn't class RAMS as a broker. A true broker is independent and can arrange a mortgage with many different financial institutions. If I as a broker went 'bust' then it wouldn't matter to the borrower because their loan is with the bank and not me!

Hope that helps but if you have any questions please feel free to ask.

Cheers,
Mark.

Please be gentle. Just a question - this is based on the assumption that prices keep going up without any correction? One doubt I have on my mind is
with the ever-increasing mortgage rates (another increase soon) there must be people out there struggling and throwing in the towel which will then lead to foreclosure/repossessions etc. When that happens, what will the scenario be? Someone has answers? Thanks.

Due to the amount of retail spending it seems that most people still have lots of spare cash, or they are just buying everything on credit

Putting the interest rates seem to be making inflation worse because it increases rent and rent is a major factor in determining the inflation rate

Hi Jan,

This is my take on it...

You have to take into account the area. I will tell you what I know about SE QLD.

Obviously interest rate increases make affordability more of an issue. The thing to remember is that it is a hot political topic at the moment and the media are diving in as they usually do with strories that are going to get the biggest reaction... which is of course going to be repossessions etc.

These are the facts...

Low unemployment. Studies have shown that people feel secure at the moment. This means that they are prepared to take on more debt as they feel secure in their long term employment and understand that the repayments will become easier over time.

Demand. In SE QLD demand is still far outstripping supply. People are actually camping out when there is a land release due.

More that 1 income earner. In the past, when rates were 17% or so, more households had only 1 income earner. Today, more and more households have 2 income earners... again adding to the feeling of security.

Now of course there is a point where interest rates makes affordability a real issue and starts to affect the market. However, based on the current market in SE QLD, the current rates and future increase does not seem to be effecting demand.

Cheers,
Mark.

Well looking at it from the other side, I pay $360 a week rent. Can anyone tell me how much of a house that would get me if it was a mortgage?

Yep - think that's right In Perth only though?

sam xx

That would depend on the value of your mortgage!

Cheers,
Mark.

Anybody who has ever owned a house anywhere in the world has to pay stamp duty.

We had rotten problems getting a mortgage Knew we were going to buy ASAP. as house prices on the rise and I have a renting phobia. OH had new job with a US company (took it because the money was outstanding and it meant we could afford a nice house!) Found a house within a month of being here (Some of the open inspections were hilarious) Got a really good mortgage broker who worked his backside off for us, and eventully got one, but it blew our savings out of the water. Just be prepared with all the paperwork etc. Love my new house by the way, so worth the hassle

Don't envy you getting a 100% morgage. The rates here are so high and getting higher...i only borrowed $240,000 last year with a 60% deposit and i pay $2050 a month.

And we paid $20,000 stamp duty.

Putting that amount towards a mortgage ($360 a week), the Commonwealth Bank calculator reckons you could borrow $192k over 25 years or $200k over 30 years.

No it's only if you owned a house in Aus.
Tracie