just a quick query. Any advice would be greatly appreciated.
My partner and I wish to purchase a home for 990k
We have 400k as a deposit and that is in the form of an apartment we have a sale contract on.
We have 25k in savings and we have an income of 6k nett a fortnight.
The issue is that I myself can not be part of the loan - I previously separated 4 yrs ago and had to take a part 9 debt agreement to continue on in life.
Without my income, my partners is 2k a fortnight,
however - for the past 12 months, one form of my income (superannuation) has been paid into her account and never touched (2k a fortnight). Will the bank be able to take this into account? What are her chances alone on that income to be approved?
I am asking because we would like to place our offer and don't want to be stuck in the dark.
Exciting times - Looking at a property, putting in an offer on so life can move forward again is a very exciting prospect. Your patience to PAUSE and ask this question is a REALLY wise thing to do.
I have made a few assumptions here first and will answer your question straight after.
If you were to sell your apartment for $400k and contribute it directly to the new purchase (assuming there are no other fees commissions and conveyancing charges etc) and you put that with your $25k deposit this would represent a deposit of 37.4% of the purchase price.
In turn it would see you, assuming the purchase is in Victoria, with stamp duty of $54,450 to come from the deposit funds you have provided. The end result is a loan amount of approximately $619,450 (indicative variable principal and interest repayments at 4% would be $2,957)
So that being the case I would imagine this is very "DOABLE" for you given your income situation.
Your real question here comes down to the lenders who are able to assist with using your incomes to meet their requirements given your part 9?
You will be pleased to know, that there are lenders out there that can consider your application and both of your incomes despite previous credit indiscretions.
My reccomendation to you is
1. Get a loan approved FIRST before you put an offers on properties
2. Once approved, GO SHOPPING!
3. Settle the loan, celebrate moving into your new place and thank us later.
I can prepare your application and have it lodged with a lender within a day.
Please contact me if your keen to know the options available to you and a quick turn around on the application to be lodged.
I think Craig is right in that you seem to have the cart before the horse.
Get your finances sorted, get approved for some money and THEN go shopping.
Right now you have too many things that can change to allow you certainty, so go get some certainty first:)
There are a lot of things going on in your situation that need to be discussed, verified and then tested with a lender.
One immediate concern that I have is that you have mentioned you are already receiving some payment from your Super. Are you in transition phase now? Lenders will look for comfort as to how you will earn your income for future years and what your exit strategy would be if you were to stop work completely.
We can get around the part 9, however, to have you on the loan would attract a higher rate and risk fee from the lenders.
The best thing you can do is meet with a broker and lay everything on the table, they will be able to guide you as to what options you have now and what you can do to improve your credit application in the future.
I am very close by if you would like to grab a coffee and discuss further?
Graham Doessel - CEO - MyCRA (Specialist Credit Repair) Lawyers (LPH)
Current Rating: 4.65 / 5
Hi Partner A1,
This is a touchy and very personal subject. Well done for having the courage to reach out for help.
Just a quick side note to mention that there are lenders that will still look favourably on you for having met your commitment to your Part IX Debt Agreement.
As Scott mentioned above, it will attract higher fees, but if you guys are ready to move, speak to a Broker like Scott that understands specialist lending and check out your options.
Generally speaking, the Part IX Debt Agreement will be automatically removed from your credit file two years and one day after you finalise the Debt Agreement.
I hope that has helped a little and good luck, it sounds like you've worked hard to get things back on track and a little good luck would be a welcome change from the past, wouldn't it.