house loan .

[Fusion]

Hi Guys . Looking at buying my first house but have 1 mark against my name for a stupid $140 overdue telstra bill . Will the banks even look at me with this strike against my name ? The bill has been paid .

[Sleepy]

Yeah - should be right Mick.
Get on the phone and have a chat - they will crunch the numbers and let you know what they will lend you. (Don't settle for one bank - ring around)

The days of sucking up to the Bank Manager are gone. If you can prove your income, they will ring around and check you out.

They will let you know what they'll lend you. If the debt you mentioned rings alarm bells then discuss it with them.

In the end, they want your money more than you want theirs. :ohyes:

[Fusion]

Hi Sleepy . We are going to ring aussie in the morning and also Rams home loans . We also have an appointment with westpac late monday .

[Disco_owner]

I commend you for making the 1st step towards property ownership , 1 unpaid Telstra Bill will have no bearing on the morage lender.:)

are you thinking of buying in the same township ?:cool:

[Fusion]

I commend you for making the 1st step towards property ownership , 1 unpaid Telstra Bill will have no bearing on the morage lender.:)

are you thinking of buying in the same township ?:cool:

Hey Khos :D . yeah will be buying in Colac . We are happy here and the kids are doing great at the school they are in so we are more than happy to stay put ! :)

[Sleepy]

Hi Sleepy . We are going to ring aussie in the morning and also Rams home loans . We also have an appointment with westpac late monday .

That's a good start mate. Have a look for online home loan calculators - most of the banks have them. Gives you an idea of how expensive money is.:lol2:

Good luck!

[Fusion]

That's a good start mate. Have a look for online home loan calculators - most of the banks have them. Gives you an idea of how expensive money is.:lol2:

Good luck!

yeah have been doing the calculator thing :D . we are paying $200 a week in rent at the moment so i'm sure we can pay off a house .

[Fusion]

we also have a guarantor . to help us out .

[dullbird]

yeah have been doing the calculator thing :D .
we are paying $200 a week in rent at the moment so i'm sure we can pay off a house .

geez renting is cheap down there....when we were renting we were paying $340 a week:eek:

[Fusion]

geez renting is cheap down there....when we were renting we were paying $340 a week:eek:

Hi DB . My town consists of 11,000 people so being a country town things are a lot cheaper than the city .

[Sleepy]

Sounds pretty straight forward the Mick. They will lend you "x" based on your income "y".
Depending on your deposit, they may require Mortgage insurance.
This will cost you another grand or so added to the loan. Mortgage insurance only protects the bank, not you.

Consider income protection insurance and life insurance too - in case you get injured or worse, carc it - the missus and kids will be OK with the mortgage. (No, I am not an insurance salesman!!!)

[JamesH]

If you (or your partner) are in a industry super fund then you are eligible for a discounted rate from Members Equity Bank.

No application fees are payable and there are no account fees. I paid a large application fee for Westpac and $5 a month account fees. It adds up!

Shop around whatever you do.

[Chucaro]

Go for it mate, it would be the best moove regarding investment :cool:
Call the Commonwealth Bank as well and do not forget the Credit Unions.
Credit Unios used to have an sick & accident insurance for your loan that will pay the loan as long as you cannot work in your tratde or proffesion. VERY GOOD cover ;)

Cheers

[big guy]

Hey mate


I suggest a mortgage broker.

They charge nothing and get a kick back from the bank and a trailing commission till the loan is discharged.

They will do all the leg work for you and usually get best rates and services.

[kaa45]

Hi Mick,
We just refinanced with Achieve Home Loans...saved a fortune.
Better deal than the broker we used last time.
Give Will McKenzie a ring on 03 5229 7866
He'll look after you, even with a strike. Not a problem.
Cheers
Danny ;)

[Vern]

Hey mate


I suggest a mortgage broker.

They charge nothing and get a kick back from the bank and a trailing commission till the loan is discharged.

They will do all the leg work for you and usually get best rates and services.
i totally agree, mortgage brokers do all the hard work, look for the best deal and it cost you nothing, soooooooooooo much easier than dealing direct with the bank:)

[Stue 3 doors down]

I have put Mark on to many over the years and always had good feedback.
Any questions I always call him and he finds the answers.
Call Mark as he was recommended to me years ago and got us a house loan with my wife being pregnant and ready to stop work and I had just started a new job.

Mark from IMC 0407998891 he works in Berwick I think.
Tell him James referred you to him if it helps?
Good luck and dont stress about the Telstra thing as I had a big row with Telsta after they lost:mad: my $900 cash payment at one of there shops. Mark is very good at these things.

[Fusion]

well i have a guy coming down from aussie home loans on wednesday :D . Also waiting to hear back from the Westpac bank . At least i have the ball rolling now :cool: .

[Slunnie]

well i have a guy coming down from aussie home loans on wednesday :D . Also waiting to hear back from the Westpac bank . At least i have the ball rolling now :cool: .
Don't necessarily go off the interest rate with them. Check the comparison rates and find out what it will cost you up front and likewise every month (or whatever) and compare that way. I get the feeling that Aussie, RAMS etc have low rates for marketing but at the end of the day what it actually costs through them is not necessarily reflected by the interest rates.

I went through a credit union for mine.

[FenianEel]

Hi Guys . Looking at buying my first house but have 1 mark against my name for a stupid $140 overdue telstra bill . Will the banks even look at me with this strike against my name ? The bill has been paid .
Unless you have 20% deposit, or someone (i.e. parents) willing to put up property as additional security, the decision will be made the Mortgage insurers. (There are really only 2 major MI's in Australia, Genworth & QBE)
Mortgage Insurers can, and are, declining deals on something as simple as that.
It really depends on the strength of your application and position.

At the moment, there are only 3 or 4 banks/lenders doing 95% loans.
So, you will require minimum 5% deposit, saved over minimum 3 months (not including the grant or any gifted funds).

Costs on a $210k purchase in Vic, for a First Home Buyer would be as follows:
Mortgage Registration Fee: $98 (govt fee)
Stamp Duty on purchase : $6,870 (govt fee, NSW & QLD are nil for FHB by the way)
Land Transfer Registration Fee: $636(govt fee)
There goes $7,604 without application fees, solicitors or pest and building...
But Victoria, you should get about $16,000 until the end of September with the Grant and VIC govt incentives.

The other thing to look at is Mortgage Insurance costs. Not many lenders will now add it to your loan, if your loan is a 95% lend.
If you can pay it up front, or with the grant, it's much better.
$3,500 could actually cost about $15k + in repayments and interest over that term.

Don't waste your time going to the banks direct, use an experienced broker, as some of the guys have said.


Depending on your deposit, they may require Mortgage insurance. Unless you have 20% deposit, you will pay Mortgage Insurance.
This will cost you another grand or so added to the loan.
With a 5% deposit on a $210k property (median price in Colac) this would be about $3,500
Consider income protection insurance and life insurance too - in case you get injured or worse, carc it - the missus and kids will be OK with the mortgage. (No, I am not an insurance salesman!!!)
Good advice, and something not many borrowers do or think of

[BigJon]

I went through a broker for all of my home loans. No hassles, just very easy.

Interestingly one of my loans is with the same bank that I use for all of my day to day banking. I had a meeting with the bank manager and they couldn't help me. Using a broker they could.
It seems that there are loans available through brokers that you can't get face to face with the bank.
My broker told me that it is a pretty common situation.

[big guy]

Totally agree with big john.

Also depending how many properties you wish to buy in the future and or refinance later for something.
I have several and my next one will be going to another bank to spread exposure and also one bank can be palyed off against another in some suttle ways.
Bank SA along with some others have whats called a professional pack which when you borrow over one mil, you get 0.4% below current variable rate and other benefits.

In other words, a broker if its a good one and you can build up a good relationship, have all your details on file and if you drive by a house you like and you put an offer in, a quick call for redraw on your equity can secure a deposit and off you are for your next purchase and so on.
Keep them at interest only loan as they are deductable 100% and keep going like that.

In 15yrs they be worth a small fortune and you still only owe what you do now and hey presto, you nest egg right there.

Anyhow, if this is your first or fifth, does not matter, feel comfortable with the broker and build on that. If you feel he is here today gone tomorrow, just get up and leave and find someone you feel you can trust.
Like the guy referred here by some-one, thats a good start.
Best of luck mate.

[V8Landy]

Good to hear Mick that rent is dead money:(. Good luck with it and let me know how you go. :cool:

[Gullible]

Good to hear Mick that rent is dead money:

I'm not sure I'd call rent dead money.

You get a roof over your head, no up keep bills, and usually at 1/2 the price it would cost to buy where your already living.

On saying that if your looking to buy, then now is a good time.

[big guy]

Rent is not dead money.

We all have to live somewhere and that is exactly what you are doing.

[V8Landy]

I'm not sure I'd call rent dead money.

You get a roof over your head, no up keep bills, and usually at 1/2 the price it would cost to buy where your already living.

On saying that if your looking to buy, then now is a good time.

But when you eventually have to move all that dough is gone. If you buy then the house and property are yours.;)

[ariddell]

How long ago was the Telstra thing?

If it was over 5 years ago it'll be gone from your credit file and you wont have to worry about it at all.

[Gullible]

But when you eventually have to move all that dough is gone. If you buy then the house and property are yours.;)

Yes, but you had to pay the bank 1.5 times the original value of the property before you own it. In order to make money the you must live in it long enough for the value to go higher than all the money you've put into it and the bank.

Easy to do 2002 to 2007, not so easy to do now.

Don't get me wrong, if your in a area you like and your planning to stay there long term then buying a house gives you peace of mind and long term security. But that does not make renting dead money.

[Fusion]

How long ago was the Telstra thing?

If it was over 5 years ago it'll be gone from your credit file and you wont have to worry about it at all.

It was early last year :( . was paid within 2 months of getting the bill tho .

[3toes]

I think you may be being a little too excited over the potential problem that the phone bill could cause. If this was just a late / disputed payment and did not end up being taken to court then more than likely it does not appear on any credit record.

[Sleepy]

Found this link Mick, thought it might be of interest.

CHOICE - Credit bungles (archived) (http://www.choice.com.au/viewArticle.aspx?id=104130&catId=100405&tid=100008&p=3&title=Credit+bungles+(archived))


How did you go today?

[Fusion]

I have a copy of my credit record and the phone bill has done the damage . I have a black mark :( .

[Fusion]

How did you go today?

Things look pretty positive at the moment even with the mark against my name . Just need to have a talk with the guarantor in the next few days . Fingers crossed guys ;)

[digger]

Things look pretty positive at the moment even with the mark against my name . Just need to have a talk with the guarantor in the next few days . Fingers crossed guys ;)

good luck mate!

[p38arover]

Get rid of your credit cards before seeing the broker.

If you have a card with a $5000 limit (even if unused), that reduces what you can borrow by ten times as much, i.e., $50,000.

As an aside, I wouldn't consider going guarantor for anyone, not even my kids.

[big guy]

A credit card limit is taken into account but not to the value of 10 times.
Its actually worked out at what the max limit is and what could those payments be at if it was maxxed out.
So say a $5000 card the max payment may be $160p/m.
They take that $160`p/m as a possible outgoing into account and quite often if budget is tight will ask you to decrease the limit or get rid of it alltogether.

Loan serviceability is calculated at a percentage of total monthly household income versus expenses.

This changes bank to bank but 40% is around the mark for loan payment from net monthly income.

Hope it goes all well with the banks.

[Sleepy]

Any updates Mick?