IS THIS TRUE REGARDING A MORTGAGE?
#1
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!!!
#2
Forum Regular
Joined: Jun 2007
Location: Redcliffe, QLD.
Posts: 212
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.
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.
#3
Lost in BE Cyberspace
Joined: Apr 2004
Posts: 10,375
Re: 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!!!
#4
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
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
Last edited by andrew63; Jun 7th 2007 at 9:39 pm. Reason: extra bit
#5
Re: 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!!!
Cheers
Ginny
#6
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.
#7
Joined: May 2007
Posts: 5,133
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 ...
#8
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
#9
BE Forum Addict
Joined: Jun 2004
Location: The Gold Coast
Posts: 3,069
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 )
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.
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.
Last edited by tracey.d; Jun 7th 2007 at 11:27 pm. Reason: was even more waffly than it is now :D
#10
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!
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!
#11
Re: 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!!!
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.
#12
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.
Last edited by Big Galah; Jun 7th 2007 at 11:59 pm.
#13
Just Joined
Joined: Feb 2006
Location: Carlton North
Posts: 11
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
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
#14
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.
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.
#15
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.