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Q: Hi, we are buying a new home at Ambervale, Price $599,000. We are both working and combined income is $130,000 and have no other debts or credit cards… we have a 2 year old at day care and want to borrow $500,000. What is the best rate we could get and does the loan have to be with one of the banks? Thank you
A: Hi Marion
As my fellow brokers have mentioned, you need to sit down with a broker and have an in-depth discussion about your current situation and future goals. Your broker will then be able to determine which lenders you qualify with and then show you three of the most suitable products based on your individual needs.
It's also important for consumers to understand that sometimes the lowest rate is not always the best deal, you've also got to consider what features you require (e.g. offset account) and any fees involved, you may find the lowest rate but that might come with high upfront and/or ongoing fees, in which case a slightly higher rate with no fees could end up costing you less in the long run. There are so many factors to consider when choosing the right home loan and I highly recommend speaking with a mortgage broker - it's free to you and the majority of brokers provide exceptional customer service.
Good luck with everything!
Caroline
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Q: Can I ask what the best 3-year fixed rate is for the property I live in and can I pay extra into the loan when by bonus comes through?
A: Hi Theo
There are plenty of competitive fixed 3 year rates at the moment starting from 3.69%, it all depends on your individual situation as to which lenders you qualify with and what your long term goals are. Some have 40-100% offset accounts, most have no offset but allow up to $30k in additional repayments during the fixed period. Each lender is different.
Best to speak to a Mortgage Broker who can help you choose the most suitable product.
Kind regards
Caroline Pollard
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Q: A friend suggested I invest my cash savings into my own SMSF to help with the purchase of an investment property? Is this wise and how can I get my cash back?
A: Hi Lucia
As mentioned above, I would be very cautious in getting financial advice from friends unless they are experts in the field. Best to speak to a financial adviser first. There are many rules & regulations and the running costs of the SMSF can cut into your retirement savings.
If you have cash savings, is there anything stopping you from getting an investment loan without borrowing through a SMSF? I also do SMSF loans but just curious as to why your friend would advise you to do that.
Feel free to contact me if you'd like to chat, happy to offer you some guidance.
Kind regards
Caroline Pollard
cp@baysidefinancesolutions.com.au
0418109552
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Q: Hi, We are struggling financially with credit cards & other debts. We can manage comfortably with Mortgage repayments it's all the other debts which are crippling us. I have seen when searching online that you can keep your home & car if you declare bankruptcy? Is this possible?
A: Hi J,
I received your message however I am unable to reply directly at the moment.
Sounds like you have done your research on refi/debt consolidation options. Unfortunately based on what you’ve told me, I would be unable to assist.
The best advice I can give you is to call the National Debt Helpline 1800 007 007, this is a free service and you will be able to speak to a free financial counsellor who can explain all of your options and may be able to assist you without you having to file bankruptcy or enter into a debt agreement.
I looked up the website you mentioned and I have no doubt they would charge you fees for advice and for managing your debt, they would most likely enter you into a ‘Part IX’ debt agreement (which is an act of bankruptcy).
With a debt agreement, your creditors can still apply to the court to make you bankrupt and you will also be listed on the public register for a very long time, you'll have trouble getting credit in the future and depending on what you do for living, it may also affect your employment and will affect your income.
As Brendan mentioned, If you become bankrupt, most of your assets (including your house) will be sold to help pay your debts. Unfortunately there is no way around this. Look up debt agreements and bankruptcy on AFSA or ASIC's Moneysmart websites.
I hope this info helps you out a little and that everything works out ok for you.
Kind regards
Caroline
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Q: Hi, We are struggling financially with credit cards & other debts. We can manage comfortably with Mortgage repayments it's all the other debts which are crippling us. I have seen when searching online that you can keep your home & car if you declare bankruptcy? Is this possible?
A: Hello
I may not be the right person to answer that question, however, have you looked into consolidating your debts and refinancing your home loan to a lower rate? (No I am NOT one of those dodgy late night debt consolidation places that Brendan above has mentioned, I'm a Mortgage Professional, we have strict responsible lending guidelines that we must adhere to).
I've helped many customers in similar situations and sometimes all it takes is some restructuring of your debts and re-assessing your monthly budget. Depending on your circumstances, it's possible to save a significant amount of money every month.
If you have defaults on your credit file due to not being able to meet your repayments of debts and credit cards, there are specialist lenders who may still consider you.
Let me know if I can help in any way, no cost to you and no obligation. I'm based in VIC but can chat with you via ph/skype/email.
Alternatively, you could speak to a Free Financial Counsellor for advice.
Kind regards
Caroline Pollard
cp@baysidefinancesolutions.com.au
0418 109 552
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Q: I would like to get some advice on the maximum percentage I could borrow as a first home buyer. I have $53,000 available for a deposit and my salary is $87,000... thanks?
A: Hi Mark, it's really hard to say without knowing your overall financial situation. As a general guide, a salary of $87k may be eligible to borrow up to $600k. That's if single and no dependants and no other debts or credit cards and a basic lifestyle with a good credit history.
In NSW, FHOG of $10k is available for properties up to $600k (must be a new property), or if building, up to $750k. And $0 stamp duty.
Most vendors require a 10% deposit, so $53k is 10% of $530k. You can get away with less deposit however depending on vendor's requirements.
You may be able to borrow up to 95% of the property value. Anything over 80% requires lenders mortgage insurance (LMI) - which will be in the thousands and can be added to your total loan amount.
You can avoid LMI if you have a family member who is willing to use equity in their home as a partial security guarantee to get the LVR (loan to value ratio) down to 80%.
Hope this helps give you an idea anyway. Let me know if you'd like some assistance.
Kind Regards
Caroline Pollard
Bayside Finance Solutions
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Q: I have saved $28,000 and found a unit I would like to make an offer on… around $600,000. My income is $110,000 and the mortgage broker I spoke to suggested a family guarantee loan but when he found out my parents had a loan on their property he said it wasn’t possible. Their loan is only $90,000 and they have plenty of equity. Is what the broker said right and are there any other options available?
A: Hi Nick
To answer your question, that is incorrect advice from your broker. I know of lender's who will allow a second mortgage for a Family Guarantee - I've done this recently actually. It just depends on whether or not you qualify with that particular lender.
Happy to help if you need some assistance. I'm based in VIC but work with customer's in NSW also.
Kind Regards
Caroline Pollard
Bayside Finance Solutions
0418109552
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Q: Im 30 and work in a secure full time permanent role as a HR Manager.
I have $60,000 deposit and have found a place that ticks all my boxes for $520,000
My monthly salary is $5377
Repayments would be $514 a week approx
I have no other depts or loans.
Should I take the plunge and buy or keep saving.
The place is two bedroom, close to a train station 300 metres from the beach in Aspendale Vic.
Are those repayments sustainable for a person on a single income?
A: Hi Josie, it's hard to say without looking at your overall financial situation. You have to take into account things such as your monthly living expenses and what those expenses will be after you buy the property (council rates/maintenance etc). Do you have any dependants or receive additional income such as overtime or family tax benefits. Whether or not you qualify for FHOG and stamp duty discounts. There are many factors to consider when buying a home. Let me know if you'd like some assistance with all of the above.
Kind Regards
Caroline Pollard
Bayside Finance Solutions
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Q: Hi, we're Melbourne residents looking to buy our first home. We saw an apartment and we have 20% deposit. However, we found out that the property is leased til June 2018. Some lenders said they only approve if the property has under 6 months of lease left. One lender agrees to approve our loan but in investor's rates until we take over the property in June 2018, then they will convert to owner occupier rates. Is this legal? Also, do we still get stamp savings as first home buyers if we proceed?
A: Hi Fae
Yes it is legal to do the investment loan to start with as you will be receiving rental income, then switch to Owner Occupied rates when you move into the property. With regards to stamp savings for First Home buyers, as far as I know, the property would need to be your principal place of residence from the time of purchase in order to receive any discounts, however it would be best to confirm this with your conveyancer as I'm unsure as to whether or not there is a way around this given the circumstances.
Kind Regards
Caroline Pollard
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Q: I’m looking at selling some rural land which could possibly be developed into residential land. The buyer has said that they need FIRB approval. Is this correct, and if so, how long will it take?
A: Hi Nick
Assuming the buyer is either a temporary resident or foreign investor then yes, they will need FIRB approval, usually takes around 30 days.
Kind Regards
Caroline Pollard
