Browse Forums Home Finance Re: Loan approval with high % unsecured debt? 3Aug 01, 2011 3:50 pm http://lindeman28.blogspot.com - Our building blog Re: Loan approval with high % unsecured debt? 6Aug 08, 2011 5:52 pm Hi, Firstly your land settles in 2 month time + contract signed and you havn't gotten a unconditional approval from lender yet??? - you better start getting cracking. To answer your questions- it's better to have a lower debt then savings; it's ok to go for a loan with min savings 10% normally for most vacant land. Regards Michael Sika Hi All, We are close to having our new block of land settle in around 2mths time. Combined we are on an income of around $175000 Net. We'll be borrowing around $500,000, and we've done a really thorough budget and know we can easily afford the repayments without too much troubles. My only concern is that in our younger years (not so long ago) we were not so smart with our finances, and have around $40000 in unsecured debt (2x Credit Cards and 2x Personal Loans). We have no defaults, and have never missed a payment. When we go for the loan, we'll have around $80,000 in genuine savings. We're easily saving $7500p/m at the moment. How much of an impact is the unsecured debt likely to have? We've never had a home loan before, and don't currently own property. Would it be better for us to pay down a good proportion of the debt (say pay off 1 card and 1 loan), and go with a smaller deposit/savings, or is the higher savings amount better? Michael Chan | Australia wide Mortgage Broker Michael@ShapeHomeLoans.com.au | 1300 74 5626 | Fax: 02 8212 8909 http://www.ShapeHomeLoans.com.au 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 19097 It will be neat but you won't have much freeboard. At least they are not weep holes. Are you in a high intensity rainfall region? The regulatory slope is only required… 3 8267 Thanks mate. Yeah good points! Leaning towards Option 3 to get a bit extra space in the cabinets but not going too crazy high (and expensive). Would require a mini… 13 39716 |