Browse Forums Home Finance Home Loan Deposit 101Jul 23, 2009 10:55 pm I got the shock of my lending career today when a 20% deposit home loan application got rejected on the basis of 20% being gift from his mother. The applicant has savings of his own but the assessor believes a 23 year old who has a full time job could not have able to save $10,000 by himself even if he lived at home with parents. Unbelievable value judgment! Re: Home Loan Deposit 102Jul 24, 2009 9:41 am thlo I got the shock of my lending career today when a 20% deposit home loan application got rejected on the basis of 20% being gift from his mother. The applicant has savings of his own but the assessor believes a 23 year old who has a full time job could not have able to save $10,000 by himself even if he lived at home with parents. Unbelievable value judgment! Thats disgraceful, I hope you get it for them! Which Bank was it just out of curiosity, pm me if you dont want to write it on the boards. Re: How Much Deposit for Your Home Loan? 103Jul 24, 2009 4:47 pm It's a bank from a sunny state. It's so sunny there the sun shines ... every day. That's all I can say. Re: Home Loan Deposit 104Jul 24, 2009 5:38 pm thlo I got the shock of my lending career today when a 20% deposit home loan application got rejected on the basis of 20% being gift from his mother. The applicant has savings of his own but the assessor believes a 23 year old who has a full time job could not have able to save $10,000 by himself even if he lived at home with parents. Unbelievable value judgment! Doesn't seem that far fetched. I'm 23, have $19,000 saved and just had my pre-approval cut from $181k to $150k due to some new rules they have. blacktown home loan advice 105Jul 24, 2009 6:12 pm jeraldo, I read your thread and I know why that happened to you. CBA had given the warnings long time to its accredited brokers. If you used a broker you would have been prepared as we advise our customers of pending changes. The case I was talking about is a really odd one; I reported the assessor to his superiors and they are shocked as well!!! He is being a lonesome cowboy reinventing his bank's policy as my customer passed all the criteria and even the online application instantly approved him. Re: blacktown home loan advice 106Jul 24, 2009 6:32 pm thlo jeraldo, I read your thread and I know why that happened to you. CBA had given the warnings long time to its accredited brokers. If you used a broker you would have been prepared as we advise our customers of pending changes. The case I was talking about is a really odd one; I reported the assessor to his superiors and they are shocked as well!!! He is being a lonesome cowboy reinventing his bank's policy as my customer passed all the criteria and even the online application instantly approved him. It just seems strange that I get approved in May, the new rule comes in on July 1st (apparently) and they didn't know about it at the time AND didn't bother to let me know as a pre-approved customer once it came into play. I would have been fuming had I signed something only to be reassessed at a much lower value. Also, the lender I saw today didn't even know that all pre-approvals has to be reassessed until someone fortunately told her on the phone whilst I was there. The applicant has savings of his own but the assessor believes a 23 year old who has a full time job could not have able to save $10,000 by himself even if he lived at home with parents. Unbelievable value judgment! I mainly posted here due to the similarities to myself. I'm 23 with a full time job, and have saved $19k in the space of a short period. Re: Home Loan Deposit 107Jul 28, 2009 2:28 am thlo I got the shock of my lending career today when a 20% deposit home loan application got rejected on the basis of 20% being gift from his mother. The applicant has savings of his own but the assessor believes a 23 year old who has a full time job could not have able to save $10,000 by himself even if he lived at home with parents. Unbelievable value judgment! I dont know if I am reading this right? The assessor does not think a 23 year old living at home with a f/t job can save 10k?? That has me shocked. At the age of 20 (Im 21 now and got a **** load of cash from my 21st, so not inclduing that) I had over 30k in cash saved....I have a casual job and live at home. My parents pay for everything but I pay for my petrol sometimes. Obviously my situation is different, but say in 2 years time I am at a job for 2 years (fulltime) and have plenty of cash saved, the assessor would think I didnt save it? Weird. DA approved Waiting on a few more Builder's quotes. Re: Home Loan Deposit 109Jul 28, 2009 9:31 am mandystoj thlo I got the shock of my lending career today when a 20% deposit home loan application got rejected on the basis of 20% being gift from his mother. The applicant has savings of his own but the assessor believes a 23 year old who has a full time job could not have able to save $10,000 by himself even if he lived at home with parents. Unbelievable value judgment! I dont know if I am reading this right? The assessor does not think a 23 year old living at home with a f/t job can save 10k?? That has me shocked. At the age of 20 (Im 21 now and got a **** load of cash from my 21st, so not inclduing that) I had over 30k in cash saved....I have a casual job and live at home. My parents pay for everything but I pay for my petrol sometimes. Obviously my situation is different, but say in 2 years time I am at a job for 2 years (fulltime) and have plenty of cash saved, the assessor would think I didnt save it? Weird. Mandystoj, your situation probably demonstrates why they sometimes knock back savings as genuine for young people living at home. You've saved because you haven't had to pay to live. When you do have to pay for your own living expenses, will you still have money to pay the loan? That's possibly how the assessor views it. If everybody's only expense was having to pay for their petrol "sometimes" everyone would have massive savings. Doesn't mean they could service a loan when they had to pay their own way as well. I leave you to fend for yourself, figure things out yourself. Terrence Malick Re: Home Loan Deposit 110Jul 28, 2009 3:09 pm joles mandystoj thlo That has me shocked. At the age of 20 (Im 21 now and got a **** load of cash from my 21st, so not inclduing that) I had over 30k in cash saved....I have a casual job and live at home. My parents pay for everything but I pay for my petrol sometimes. Obviously my situation is different, but say in 2 years time I am at a job for 2 years (fulltime) and have plenty of cash saved, the assessor would think I didnt save it? Weird. Mandystoj, your situation probably demonstrates why they sometimes knock back savings as genuine for young people living at home. You've saved because you haven't had to pay to live. When you do have to pay for your own living expenses, will you still have money to pay the loan? That's possibly how the assessor views it. I'd have to disagree. My situation is very similar to that of one living with their parents (except I'm not). I share costs of electricity, internet, phone, groceries & other needs around the place. Yet I still save up to $500 a week ($400 if I have a lot of entertainment on). Surely they wouldn't expect the borrower to go out and rent - just to show that you can do it - rather than live at home and save on expenses that can go towards bigger savings. Re: How Much Deposit for Your Home Loan? 111Jul 28, 2009 3:32 pm My son got a home loan when he was liveing at home and he then moved into his own place. But this was about 16 months ago, before lending tightened up, and was for a small established unit, which the bank probably considered suitable for a first home buyer. He did have to show the bank a budgeting plan however to show he had planned how he could afford it. The mortgage payments were probably about the same as the rent would of been for that sort of unit. Jeraldo, I guess it is like the silly situation sometimes where you have to show you can manage credit by haveing a credit card or personal loans first - the idea that you didnt use credit becasue you managed your own money doesnt seem to count My son had successfully paid for a personal loan for a motorbike and he did have a full time job. He was 21 years old at the time. Re: 112Jul 29, 2009 11:04 pm enigma_brennan Yep, 5% deposit for us plus we paid our LMI upfront as well as the stamp duty, etc. The only silver lining in having to wait for land registration for us was that we could save up for all the extra 'establishment' costs and, thus, avoid having to capitalise them into our loan. No grants and/or concessions for us as I owned a property (for a short time) over 20 years ago when there was no help available. This seems a little unfair as my wife who has worked and paid taxes for over 25 years get nothing while 'some' who have contributed little or no tax receive the lot - end of whinge! Yep, no FHOG for us either. So unfair. My DP owned a property 15 years ago with an ex and didn't profit from it at all! Home Loan Deposit 113Aug 01, 2009 12:43 am Helyn Jeraldo, I guess it is like the silly situation sometimes where you have to show you can manage credit by haveing a credit card or personal loans first - the idea that you didnt use credit becasue you managed your own money doesnt seem to count Very good point! We call this Capacity: applicants need to prove their capacity to keep financial commitments. Just like you need to prove you can commit to a relationship before you can take it to the next level with your girlfriend. Re: How Much Deposit for Your Home Loan? 114Aug 01, 2009 10:27 pm we had over $200,000 deposit. finished building 40 square home on 5 acres with perry homes.working on the landscaping just finished pool deck with ://forum.homeone.com.au/viewtopic.php?f=31&t=2217 Re: How Much Deposit for Your Home Loan? 115Aug 04, 2009 10:28 pm Yvette72, how many properties have you owned so far? Re: How Much Deposit for Your Home Loan? 116Aug 05, 2009 7:59 pm 5 houses.this one was our first brand new one would have been over $200,000 made some good money in the real market buying and selling also helps having worked in the real estate industry over the years looking at getting back into this industry finished building 40 square home on 5 acres with perry homes.working on the landscaping just finished pool deck with ://forum.homeone.com.au/viewtopic.php?f=31&t=2217 Re: How Much Deposit for Your Home Loan? 117Aug 12, 2009 2:23 am yvette72 5 houses.this one was our first brand new one would have been over $200,000 made some good money in the real market buying and selling also helps having worked in the real estate industry over the years looking at getting back into this industry 5 houses! Struth. I've read many of your posts, you used to live in my area. If you come back to Sydney to work in real estate again, let me know. Re: How Much Deposit for Your Home Loan? 118Aug 12, 2009 2:52 pm yes I hi have lived in afew place as a girl lived in blacktown area then riverstone before moving to stmarys we brought our first home in st marys then one in claremont medows and then one in cranebrook then we sold moved to beaudesert qld sold that to build a new one we are living in nowso thats 5 in total.I donot think I would move back to sydney but would love to sell realestate here I looking inoto the registration course here at the momment finished building 40 square home on 5 acres with perry homes.working on the landscaping just finished pool deck with ://forum.homeone.com.au/viewtopic.php?f=31&t=2217 Re: How Much Deposit for Your Home Loan? 119Aug 13, 2009 12:47 am We got 97% for our land loan and paid for stamp duty and LMI out of our pocket (with the 3%). For the construction loan we have paid 5% our of our pocket and will use the FHOG to pay for remaining LMI and post contract variations which are around 8k at the moment. All up we contributed around 30k of our own money which I think is pretty good considering we are renting. Building Sandhurst 36 Porter Davis Currently Fixing Re: How Much Deposit for Your Home Loan? 120Aug 14, 2009 6:05 pm chickad23 All up we contributed around 30k of our own money which I think is pretty good considering we are renting. Yes you were lucky to borrow 97% of land value to start with. The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 13524 Hi, you've probably already resolved this, however, Commbank will probably pay the funds to you after you send evidence the work is done regardless the change in the quotes. 1 31778 In NSW the maximum deposit for building work is 5% until the builder provides HBCF insurance 1 3281 |