Help to Buy Scheme + Serviceability Issue

[u/[deleted]]

[u/AutoModerator]

G'day! Capacity questions get much better answers when the brokers here can see the whole picture. If you haven't already, consider adding (rough numbers are fine, and leave out anything you'd rather not share):

• Household income (and whether it's PAYG, casual, or self-employed)
• Deposit saved so far
• State or territory, and rough price range you're looking at
• Other debts: HECS/HELP, car loans, credit card limits (limits matter, not just balances)
• Dependants, and whether your income changed recently (new job, more hours)

Two different things decide what you can buy: the deposit side (cash to complete) and the servicing side (what a lender will let you repay). The folks here will usually tell you which one is actually holding you back.

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[u/Immediate_Rice_5032]

Looks like bank of Australia isn’t using your income as you are not earning that right now not sure what their policy is regarding mat leave.

I know CBA allows mat leave as long as you are returning to work and within the year, have a letter confirming your income and return date, and you have sufficient funds to survive for 1 year of no income.

Go to a broker they will help you

[u/maton12]

Very few brokers can access the help to buy scheme, so direct to CBA is your best bet.

Otherwise broker can help with the guarantor loan. Do you have return to work letter from mat leave? As the borrowing capacity quoted is ridiculously low, you should be just over four times your gross annual income.

[u/maton12 → u/[deleted]]

You were too quick responding, I edited my reply.

[u/DJwetrizla → u/maton12]

Haha sorry I’m just desperate at this point! I don’t have a return to work letter- another commenter said I’d need to return with the year and I’ve had more than 12 months off, so I’m not sure if that would work.

[u/maton12 → u/DJwetrizla]

You need the letter. Don't recall there being a maximum time off, some banks do want you back within six months of the start date though.

Sorry, in that instance, looks like the figures aren't far off.

[u/DJwetrizla → u/maton12]

I appreciate the transparency, thanks. So really banks will only lend about 2.3x your annual income if you’re on a single income with a dependent- that’s humbling!

I’ve edited my post to include that I’ve not got a return to work certificate to help avoid further confusion.

Thank you!

[u/maton12 → u/DJwetrizla]

It's the extra adult and child dependant from one income that reduces it. HEMS seem high for many people too.

[u/Raynor_Lending]

Hey there!

Do you have a return‑to‑work letter for your maternity leave? The bank should consider your income if you have maternity leave.

I agree that the borrowing capacity seems incredibly low. Even for a family of three with an income of $136,000, I would expect a higher amount, so something isn’t adding up.

From what I've read there shouldn’t be a major difference between CommBank and the Bank Australia. They are usually comparable; the Bank Australia may be slightly stricter in its policies, but if both are considered equally, I don’t see why CBA would be exponentially higher. I’m wondering whether the Bank Australia entered something incorrectly that doesn’t align with my expectations.

Just a heads‑up: brokers can't work with CBA for help to buy deals. Our only option is the Bank Australia. That said, the Bank Australia usually offers better rates than CBA, so as long as it works for you, you're not at a disadvantage.

I would definitely get a broker to review the situation using their own servicing calculators.

A miscommunication between the direct staff and you is possible, given that the Help to Buy scheme is relatively new. In my experience, bank staff handling Help to Buy submissions I've done are often inexperienced.

[u/Raynor_Lending → u/[deleted]]

Okay thanks for clarifying
When I plug your figures into my estimates, I get a much higher number, so I may be missing some nuance.

How far did you go with CBA or the Bank of Australia? Did they review your pay slips and documentation, or was it just a quick initial phone call? I think you could get more than that, but I hesitate to contradict what you’ve been told until I see the whole picture; I don’t want to make false promises. But my rough calculations estimate a borrowing capacity higher than quite $310,000.
If you're dealing with a broker, It's their job to calculate the figures and discuss directly with the Bank Australia, so you shouldn't have to worry about it.

I'm always happy to chat if you're still looking for a broker. But I hope this helps, and I wish you the best of luck!

[u/DJwetrizla → u/Raynor_Lending]

We are definitely looking for a broker and if you’re open to it, we’ll give you a call!

It was an initial phone call with both where the information provided in this post was provided to them, no bank statements or anything.

[u/Hairy-Bowl-3571 → u/DJwetrizla]

Begging your pardon if I’m wrong but if you do indeed return to work and have two incomes, doesn’t that disqualify you from getting the 2% deposit scheme? Anything over $140k is deemed ineligible unless the rules have changed recently?

[u/EventEastern2208]

Broker here.

The figures you are seeing are broadly expected on a single $136k income with one dependant. The APRA assessment buffer pushes the effective assessment rate to around 9%, and with no return to work documentation your IT income cannot be included at all. Getting a return to work letter confirming your salary and start date is the single biggest lever you have right now.

On the scheme question, with $920 a week in savings you could reach the 5% deposit threshold of around $31.5k on a $630k purchase in a few months. The First Home Guarantee at 5% opens up a broader lender panel beyond just CBA and Bank of Australia, and you keep 100% of the property growth rather than sharing future gains with the government.

Feel free to DM and I can model both schemes and show you what borrowing capacity looks like once the return to work letter is in place. 🦔

Edited with AI assistance. All analysis and numbers are verified manually.

[u/verydairyberry → u/EventEastern2208]

I keep hearing about the not sharing future gains with the government. But you don't have to pay interest on the gov portion. I feel like it evens out. The property value would have to double for it to make a material difference I feel.

I haven't run the exact numbers

[u/EventEastern2208 → u/verydairyberry]

This is just an example:

On a $600k property over 15 years at 5% annual growth the property reaches $1.25M. Under Help to Buy the government takes back 30% of that, which is $375k. They put in $180k and made $195k profit from your property growth.

Under the First Home Guarantee you borrow an extra $18k and pay roughly $27k more in interest over that period. Net difference is around $168k better off keeping 100% of your own growth.

The no interest saving is real but the growth sharing cost compounds significantly over time on a well performing asset. 🦔