We are keen to buy in the area we currently live, approx $1.2m. Like to know what’s the maximum you can borrow with and without mortgage insurance, thanks?

Hi Angie,

Beautiful area to buy in. The maximum you would be able to borrow will depend on your personal finances.

I am a mobile mortgage broker and am not too far from your location. I would be more than happy to come and see you for a Free no obligation consultation to help you work out what is the maximum you would be able to borrow.

If you would like to arrange a meeting you can contact me on 0431.156.001.

Have a great day.

Jacqui
mobilelenderkeysborough

Hi Angie,

I agree with Jacqui, there is more to understand before giving you an accurate idea of your borrowing capacity. Basically it comes down to two factors, the Loan to Valuation ratio needs to be less than 80% in most cases to avoid mortgage insurance so in your case to purchase for $1.2m you would need $240,000 deposit plus costs of stamp duty etc - around another $65,000.
The second factor is servicing the loan. It is impossible to guess how much you can service so I would recommend you sit with a broker to discuss your full financial situation - Income, expenses, assets and liabilities plus your anticipated needs for the short and medium term.
If you need any assistance please feel free to give me a call on 0435.474.498
Best regards
Scott

Hi Angie,

Sounds like you have got your eye on something already. IT may be worth getting a pre-approval FIRST so you can go shopping more deliberately with a dollar value in mind. It doesn't (shouldn't) cost you ANYTHING and provides more certainty - Plus it doesn't commit you to that one lender - It just give s you peace of mind knowing you could borrow the money.

Scott and Jacqui have covered the main points here and would like to add a little more colour to their comments.

Your question is double barreled as Scott points out - The first component of your question is about avoiding mortgage insurance and the second part is about how much can you borrow.

If we deal with the first part , that is quite simple really - Lenders mortgage insurance generally kicks in at 80% of the property value (loan to value ratio or LVR) if you were to prove your income through tax returns, payslips and bank accounts where your salary gets credited too. If, you were self employed and did not have access to this the loan to value ration would reduce and mortgage insurance woudl kick in at aroudn 60% of the value of the property. So hopefully that gives you a guide - So on a purchase of $1,2m, 80% of the property value would be $960,000. And most lenders would be able to assist at this loan amount.

Now if we deal with your ability to repay the loan a really good GUIDE is to multiply your income by about 4 or 5 times - That should give you a ball park of what you MAY be able to borrow. Scott points out ALL of the factors that come into play here and NEED to be assessed to give you an accurate picture. This is just a guide!

est way to do it it is contact a lender or mortgage broker who will ask you some SIMPLE questions about your income and outgoings and you could be rewarded with a MAXIMUM BORROWING capacity.

If you don't know where to go or who to talk to.

Pick up the phone or shoot us an email.

Regards

Craig
0481 383 490
nicholasfs@icloud.com