Q: Hi, I'm a first home buyer and want to know how much I can borrow without paying for mortgage insurance?
A: Hi Carly,
I'm in Brisbane, so would be able to see you if you needed.
But generally, 80% is your limit without LMI, if you're in an approved industry or profession, you can get up to 90%.
Q: Hi I have a personal loan with repayments of about $940.00 per month. I have been advised I don't qualify for a home loan due to this liability. The loan in question still has about 5 yrs left. Should I look at buying land or just pay off the loan first?
I am wanting to get into my first home asap
A: Hi Cheree,
Without knowing more details, it's hard to determine what is best for you. But on the surface, purchasing a land may not be the best idea at this stage for you as you may increase your debt without having being able to construct a house within the next few years.
Speak with a finance broker and find out you capacity, each bank will assess you differently, just because one lender says no, doesn't mean everyone else will say no.
Q: How much equity do I need to have in my current home, for a bank to consider it as security towards buying a small investment property? We are on a very low, base income at the moment, and I would estimate our remaining mortgage represents about 20% of the property value.
A: There isn't really a minimum, but you would ideally have more than 20% and the over and above usually will be the amount of deposit that you have. You can draw out more, but it will cost you in terms of mortgage insurance.
Obviously, your serviceability may present a problem if you're on low incomes.
Q: My husband and I are directors of our own construction company. We have reached a point where we are out of out depth with how to measure our progress and be able to see if our business is viable and our debts measureable and managable. We are lost as to what we should do next to get our debts under control. Should we seek advice from a financial planner?..and can't our bank manager help us with this planning?
A: You should speak to a business coach or an accountant that actually cares about your business and understand how to run a business. I know some very good coaches and accountants if you're after one. Your bank manager is not helpful at all generally in these kind of problems...beside calling you when you're late on repayments.....
Q: How much can my mum and I afford in rent? If I get paid $800 a f/n and my mum gets paid $700 f/n.
I always thought that even when your renting with someone else. That the rule of thumb is to not go for anything you can't afford on your own. Is that correct?
I only put the worst case scenario
A: Affordability in rent is something that is quite personal and there is no rules as such, but best to do a budget and find out what your affordability is. I have a free budgeting tool that you can install on you mobile phone to help you manage. Let me know if you would like a copy.