diddy

I've been looking at the Aussie sites and am trying to figure out how they calculate your first home loan in Oz? Apparently they just do a multiple of salary in Oz?

Can anyone explain?

diddy

D'oh.

I actually meant, they don't do a multiple.

Jacqui

No they don't just work it out as a multiple of your salary; many other things are taken into account, such as other loans you may have, how many dependant children, how many cars, average monthly spend, etc.

Try the calculators on Homeloans website http://www.homeloans.com.au/new/home.asp

We just got our mortgage through them and anyone looking for a mortgage in the Mandurah area, ask to speak to their mobile lender Gerard Harris - we found him knowledgeable, easy to get on with, and very helpful. He came to our house at a convenient time in the evenings, and went out of his way to go through all the procedures of taking out a mortgage, explaining everything that we were signing on all the forms.

ABCDiamond

When checking borrowing capacity, take account of the fact that most lenders ask how much your credit card limits are.

They then reduce how much they will lend by a factor based on the total limits.

eg: A credit card with $12,000 limit, even if not used, will reduce borrowing power by around $72,000. ($24k limit = $144k reduction)

If you pay of your balance in full every month there are at least two ways around this:

1: Tell the lender what you do, and have proof; some lenders will then ignore the card limits. (St George is one that does.)

2: Cancel your credit cards, and get new ones after the loan is approved. Most bank lenders will want to give you a credit card afterwards anyway.