Browse Forums Home Finance 1 Jan 13, 2011 5:43 pm hi all just wondering is there something we are doing wrong here? Trying to get a homeloan and its not happening we have 20k saved over a lengthy time but the problem is cause my husband is a contractor his income varies. He has all his tax returns for the past 5yrs with the same job, i'm a stay at home mum but have tax returns for the past two years from a part time job that saw me earn 20k annually. Fantastic credit history one car loan and owing next to nothing in credit cards. Need a good broker or a point in the right direction. please help! Re: getting a homeloan 2Jan 13, 2011 5:50 pm I’ve heard its hard getting a loan when you work for yourself. I got one, but at the time worked a second job which paid good money. Good luck, I have no advice, but I can tell your stressed out over it. Best of luck with it all. Hopefully someone will answer you. I’m moving your thread, will let you know when I have. Internal and External Building and Colour Consultant Online - Worldwide http://www.denovoconcepts.com Re: getting a homeloan 3Jan 13, 2011 5:52 pm You’re now in Home Finance, more likely to get a reply here Internal and External Building and Colour Consultant Online - Worldwide http://www.denovoconcepts.com Re: getting a homeloan 6Jan 13, 2011 9:02 pm We also had trouble. My husband has his own business that is doing incredibly well... but they didn't want to know about us because his business has been running for less than 2 years. In the end, we had to get his mother to go guarantor... and what made things worse was part of our house is a shop- so we couldn't get a proper home loan because its seen as commercial... so mother-in-laws family home is used as collateral. I hate this... but its the only way we could get the loan.. and get the place we wanted. Its not ideal... but, if you have a good relationship with family, and are trustworthy (both ways) then its an option... Did I mention I hate this? In a couple of years- we'll get it all sorted so its all ours. Hopefully pay a big chunk off the loan so we don't have to be slaves forever. Very heartbreaking and stressful when you have money... you do the right thing... and get knocked back... or seen as suss. Good luck!! Nonna's Nest House set for completion November 2013 Re: getting a homeloan 9Jan 25, 2011 3:55 pm loveheart ::wornout:: hi all just wondering is there something we are doing wrong here? Trying to get a homeloan and its not happening we have 20k saved over a lengthy time but the problem is cause my husband is a contractor his income varies. He has all his tax returns for the past 5yrs with the same job, i'm a stay at home mum but have tax returns for the past two years from a part time job that saw me earn 20k annually. Fantastic credit history one car loan and owing next to nothing in credit cards. Need a good broker or a point in the right direction. please help! Hi, Your not doing anything wrong at all. It just depends which bank you apply to. Not all banks allow contract work to be accepted as suitable income. Without knowing your full details, generally speaking most crdit union are ok with contract work and the big banks as well such as ING, NAB, Citibank, Macqauire Bank and Australian first mortgage ( AFM) - it just depends on HOW you "presented" the information to them, and which "product" you selected. PM sent, message me or post reply up if you want more details Regards Michael Michael Chan | Australia wide Mortgage Broker Michael@ShapeHomeLoans.com.au | 1300 74 5626 | Fax: 02 8212 8909 http://www.ShapeHomeLoans.com.au Re: getting a homeloan 10Mar 24, 2011 4:42 pm I'm also trying to get a loan at the moment. I was told I can borrow more if I reduced my credit card limits (even though I didn't have much on them). I think the banks look at the potential rather than reality. Having $6k in credit available equates to potentially having to pay quite a bit in repayments on those cards, which in turn makes you less likely to be able to make your mortgage repayments. 23 Aug 2011: Land settlement 14 Sep 2011: Block levelled 20 Oct 2011: Slab 3 Nov 2011: Frame 10 Feb 2012: Handover http://s1098.photobucket.com/albums/g372/Dazzab6/ Re: getting a homeloan 11Mar 30, 2011 12:23 am That' right, the banks looks at worst case scenario and what you "potential" can do with your CC. A 2010 research shows that 76% of mortgage hardship was initial caused by overspending on the CC and readily having access to credit when required. Yes if you have a lower limit it will increase borrowing, BUT i would not do this if your just about apply for a loan; they will know! instead you can apply to certain lenders that will not take your cc inconsideration IF you have a good record of paying your cc off every month for the last 3 month P.s If a $6,000 CC is stopping you from getting the loan amount your after; then i would really question your "borrowing/serviceability capacity"? Make sure your not placing your self in unnecessary debt - i would hate to see you be part of the 76% of ppl in the next survey Regards Michael Michael Chan | Australia wide Mortgage Broker Michael@ShapeHomeLoans.com.au | 1300 74 5626 | Fax: 02 8212 8909 http://www.ShapeHomeLoans.com.au Re: getting a homeloan 12Mar 30, 2011 6:23 am shape Yes if you have a lower limit it will increase borrowing, BUT i would not do this if your just about apply for a loan; they will know! instead you can apply to certain lenders that will not take your cc inconsideration IF you have a good record of paying your cc off every month for the last 3 month Regards Michael Not if your CC is with another bank... no way they could know.. as long as you wait long enough to get a new statement that shows the new limit. Re: getting a homeloan 13Mar 30, 2011 7:22 am wakeboardandy . no way they could know.. . Banks can find out most things and they don't take kindly to having important info being left off the application form. We have just got a lo-doc loan which is what you can get when you are self employed. We got this by using a broker - not by doing the rounds of banks. We wanted an interest only loan so that we could easily convert our home loan to an investment property loan but we were not permitted this. By the way - Shopping around banks just gets enquiries stacked up on your credit report and looks very bad. Back to the loan - the bank needed two years of BAS statements, 6 months of everyday transaction accounts so that they could analyse our spending habits, and every single asset and liability. We had no credit card or car debt and that was a big factor in our favour. In Jan 2011 the laws changed and now brokers and banks have to make sure that you are capable of paying back a loan before allowing an application to go ahead. It's huge responsibility and many buyers have been cut out of the market because of these new laws. I'd find a broker like Michael who posts here. He would know which banks are currently offering the best deals for each individual situation. (I don't know Michael by the way - just think his posts make sense and concur with what our broker told us). By the way - forget the advertised interest rates if you apply under the lo-doc rules. The best we could get was 7.46% variable with NAB. Re: getting a homeloan 14Mar 30, 2011 9:29 am wakeboardandy - IF you look at your CR file, it sometimes states the amount your cc was initially applied for " Dec 2010 | HSBC | unsecured CC | amount $10,000 " - as long as you had this card for at least 1 year your free to change the limit with no problems normally - but as you are correct you will have to wait 2-3 month for the new statements to reflect this change. Either way my post was for ppl who changes their CC limit 1-4 weeks before they apply for a loan ( very common!) Amadio - Firstly thanks for the kinds words. Yes unfortunately as of 1st January 2011 with the new NCCP law; a lot of brokers are scared of LOC loans (i was as well for the 1st month ). But this is a shame as low doc loans plays an important role for self employed clients- the NCCP DOES not restrict low doc borrowing at all. A lot of respectable banks still offer an "accountants letter ONLY + 2 years ABN" for low doc...so no need for BAS or trading statements. Having said that, yes we still need to check and make sure you can still comfortably afford the loan! even without the NCCP any good and responsible broker would have been doing this anyway... Regards Michael Michael Chan | Australia wide Mortgage Broker Michael@ShapeHomeLoans.com.au | 1300 74 5626 | Fax: 02 8212 8909 http://www.ShapeHomeLoans.com.au Use a product like Equisol's Vitalise to clean the deck then coat with a penetrating timber oil. It will look 10 years younger and add value to your home. Visit for… 1 15813 How much are you ahead in payments compared to where the build is at? Have you fully drawn down the loan? 5 11934 Mofflepop, Are you building around Qld Manly? Building & Legal is a partnership between a construction guy and a construction Lawyer. Construction: we have… 9 25595 |