Browse Forums Home Finance 1 Feb 23, 2016 2:09 pm Hi Guys! I'm currently in talks with a broker for a home/construction loan. I only make about 75k annually and have 1 child dependent. Wife is not currently working. We're first time homebuyers. Land and home is about 500k and broker tells us the max we can loan is only 335k and we have to come up with the rest. I've asked him about LMI and he tells me that doesn't matter and 335k is the max amount we can get regardless. So that means we have to shell out 125k for land settlement and 30k when construction starts. Is there a way we can increase the loan amount or are we really stuck on that amount? :s Re: Confirmation on loan amount 2Feb 23, 2016 2:44 pm Hi, do you receive any other income? Family tax benefit? That sounds about right on that basic information - regardless of equity we have to make sure you can afford the loan now, and if interest rates should rise over the coming few years. Did you discuss the repayments? On both loan amounts? Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Confirmation on loan amount 3Feb 23, 2016 3:10 pm becjarrettdalton Hi, do you receive any other income? Family tax benefit? That sounds about right on that basic information - regardless of equity we have to make sure you can afford the loan now, and if interest rates should rise over the coming few years. Did you discuss the repayments? On both loan amounts? Hi Bec! We get about 5k anually for FTB. Repayments would be 800/month for land and goes to about 1.7K when construction is done. The reason I ask is I was in talks with CBA late last year and I got a full approval for 80% of the land. Land is 250k and loan was 200k. I could've even come close to that amount right now as broker is only giving me 125k which is about 50% of the land :s Re: Confirmation on loan amount 4Feb 23, 2016 3:23 pm Unfortunately affordability has changed dramatically, huge changes, particularly around overtime. Did you give your income details to CBA? Unfortunately some branch staff aren't super well trained. If you're concerned, and obviously you are, try a comparison with another broker or lender but do not allow a credit check. Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Confirmation on loan amount 7Feb 24, 2016 10:26 am ANZ are good yep, so are some others, talk to another broker and get a comparison. Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Confirmation on loan amount 8Feb 29, 2016 9:40 pm Hi OP, Just thought I'd chime in given you're asking about wanting to borrow more money than your broker had told you was feasible. You may be right in thinking some other lender would give you more money, but then again, just because a lender may say 'yes' doesn't mean it's a good idea. I'd recommend you check out this calculator which can assist you modelling scenarios where you might experience mortgage stress. We're at record low interest rates at present, so I'd like to assume your broker was being competent in recommending that max borrowing capacity. Personally, I think that borrowing capacity already seems large given the scenario you describe (i.e. $75k income supporting 2 adults and a child). Perhaps you have zero by way of other commitments, but even then, unless you have a large amount of savings you're keeping out of the purchase equation to manage running a house, unforeseen bills and potential interest rate rises, it's probably not the best idea to go and commit to a further $60K worth of debt. Hope this helps. Naritas Finance w: https://www.naritas.com.au l: https://www.facebook.com/naritasfinance t: https://www.twitter.com/naritas WOW you are spot on. Those trees are on council land and have already caused significant problems. A few years ago the builder had to come back and install a root barrier… 7 2043 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 18895 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 35191 |