IS THIS TRUE REGARDING A MORTGAGE?
 

Wife spoke with her brother (he lives in oz)regarding getting a mortgage in Australia.We are heading to Canberra as soon as house is sold over here.We will be renting for around six months then looking to buy.He reckons his income is $130000 a year but he can only borrow $250000.Is this true?????I looked on westpac site and put in a joint salary for me and the other half of $60000 and it said we could borrow $235000 so dont know who is correct??????We will have a deposit of around $90000 to put down when we buy.Hope the above makes sense!!!

Re: IS THIS TRUE REGARDING A MORTGAGE?
 

I'm glad you asked this question!
I don't know the answer but would also like to know more about how much you can borrow on a mortgage.
I read the forum yesterday and somebody queried 3 times the income but wasn't sure. It would be good to know.

Re: IS THIS TRUE REGARDING A MORTGAGE?
 

Ive used the westpac website, what you can borrow depends on a lot of things, how many children you have, what equity you have in existing properties, what debt you have, do you have a partner, etc etc. I have found the amount you can borrow is VERY HIGH, with equity in our own house and a double income that website threw up $850,000 :eek: erm lets see now the only worry there is where to find the approx $9000 a month repayment:eek: So it really depends on so many factors, maybe your high income relative simply has other debt and you dont.

Re: IS THIS TRUE REGARDING A MORTGAGE?
 

They do take a lot into account.
I got 3.3 x my own salary (wife wasn't working, we paid 33% deposit).
Mind you, it's tough going each month!

Andrew

Re: IS THIS TRUE REGARDING A MORTGAGE?
 

Well worth looking at other banks etc. St George and I think Suncorp do good deals and give 100% mortgages. They will take into account any credit cards and car loans etc. These go against you in australia unlike the UK where they want to see credit. Email the banks to give you a better idea.

Cheers

Ginny

Re: IS THIS TRUE REGARDING A MORTGAGE?
 

Just use use a mortgage broker when you get here, they are the ones getting first time buyers 110%. They can get you a big mortgage if you want one, just remember that interest rates will probably rise after the election.

Re: IS THIS TRUE REGARDING A MORTGAGE?
 

If not before ... the economy still has the potential to 'overheat' ... I'm sure our esteemed smiling treasurer will do anything to avoid that one though ...

Re: IS THIS TRUE REGARDING A MORTGAGE?
 

I think you will find that the banks will probably lend you a lot more than you can afford, especially if you have a good deposit:sneaky:

Re: IS THIS TRUE REGARDING A MORTGAGE?
 

I know its a bit difficult to answer but... what percentage of your weekly wage would you consider affordable for your mortgage. (sorry, cant put it any clearer cos I'm tired :lol:)

For example, would 40% of your income be an affordable amount to pay for your mortgae? Will be myself and 2 kids. We dont have an extravagant lifestyle.

Re: IS THIS TRUE REGARDING A MORTGAGE?
 

Yes, we had one round last night and if you get you loan with them you get your legals free, seemed like a good deal to me :)

PM me if you want the name, I don't have it on me at the moment.

I was shocked how much the bank would let you have!

Re: IS THIS TRUE REGARDING A MORTGAGE?
 

I borrowed nearly $250k and our wage is nowhere near $130k (in fact, it's less than half that), so I've no idea where he got that figure from.

Re: IS THIS TRUE REGARDING A MORTGAGE?
 

Agree. With the income and deposit you quoted, and considering average prices in Canberra, you will have no problem getting a loan.

The banks see the big income and deposit and think "no worries". In fact, they'll probably offer you more than you'd feel comfortable with borrowing, as they don't really worry that your high-paying job might suddenly come to an end, they've got you paying mortgage protection insurance if you can't afford to pay them back (if you put down <20% deposit).

If you put down a big deposit there's usually enough equity to cover their loan in the worst case scenario (you default, they repossess and auction), so their arses are always covered.

I don't think they operate on X times annual salary formulas so much anymore. You might also find the average mortgage is now 30 years, with the option to place your savings in an offset account to reduce this term (ANZ do this - the tax-free interest earned is extra payments against the mortgage).

{Edit} Oh, looking at it again, your joint income of 60,000 seems low - are you sure this is right?

Big.

Re: IS THIS TRUE REGARDING A MORTGAGE?
 

Hi,

We're just in the process of applying for mortgage, in fact had the mortgage adviser around last night.

Our joint income is ~$125k. Some banks would allow us a %100 mortgage on upto $700k with repayments around $5k per month. We wanted around $450k, and there were plenty of lenders available.

Regards

Re: IS THIS TRUE REGARDING A MORTGAGE?
 

The banks apparently are willing to lend us 6 times our joint salary. Like someone else posted, this would result in ridiculous repayments that would leave us with no money on which to live.

There are lots of lenders out there (though not as many as in the UK), you should be able to find one who can offer a loan that suits your circumstances. It's best to see a couple of different brokers and to do some research yourself on the web / in a branch etc.

Re: IS THIS TRUE REGARDING A MORTGAGE?
 

I only guessed at our income as no jobs to go to.Wife is a PA /admin and im in the printing trade so not sure what we will earn for these jobs.If anybody knows do tell.:D