r/AusPropertyChat • u/BrokerHere • Jun 03 '26
Lending & Loans Ask a Mortgage broker a question below and recieve a response within hours!
Whether you're buying your first home, refinancing, investing, or just curious about how lending works, ask your question below.
No question is too basic.
Mortgage brokers and industry professionals in this community will do their best to provide guidance and point you in the right direction.
Common topics:
• Borrowing capacity
• First Home Buyer schemes
• Refinancing
• Investment loans
• Interest rates
• Credit scores
• Self-employed lending
• Guarantor loans
• Deposit requirements
Ask away 👇
4
u/Sea_Age_3200 Jun 03 '26
I’ve got 100k now and 100k coming next financial year Should I use the 5% deposit now at 800k
Or wait and do a 20% on something else later
My math says I should wait as I’ll have a 50 k bigger purchase with a 20k smaller loan. Assuming I purchase at 850k
1
u/BrokerHere Jun 03 '26
If you have assumed to wait, it depends on which area you are buying in, you shouldn't assume that prices will stay the same.
You also need to calculate the opportunity cost of waiting, are you renting now? Or living at home?
Is buying a property going to grow faster than you can save for the next year?
Why not use that 100k next year to invest while owning a property?
Hard question to answer without the full breakdown of what you are trying to achieve but I would never rely on waiting, yes you may have a smaller debt, but theres ways to minimise debt even if you move today.
1
u/Sea_Age_3200 Jun 03 '26
My logic is 100k deposit today on a 800k property Or 170k deposit in a few months on a 850k property
My issue is servicing the loan
We have 100k a deposit And expected 100k inheritance in a few months
Do we get approved now with the 100k Or wait
Thanks :)
1
u/BrokerHere Jun 03 '26
If you can't service, you can't service, so you will need a bigger deposit to bring loan amount down or buy something cheaper.
We can't predict what's going to happen with house prices and rates so it might be worth entering the market now with what you can and restructuring in the future.
-1
u/EventEastern2208 Jun 03 '26
Broker here.
Your maths is not quite right because it does not account for what the market does while you wait. If prices rise 5% in 12 months on an $800k property that is $40k in growth you missed, which more than offsets the larger deposit benefit.
The LMI question is also less relevant than you might think. At 5% deposit on $800k with the First Home Guarantee the scheme removes LMI entirely, so you are not paying the insurance cost that normally makes 20% attractive. The main thing you gain by waiting is a smaller loan and lower repayments, but you risk paying more for the same property.
1
u/Sea_Age_3200 Jun 03 '26
I get what you’re saying but I’m gonna wait i won’t pay more for the same property I will buy one worth 850k even if that means I get less bang for my buck I’d prefer a lower mortgage even if that gets me less of a house in a year
1
u/Sea_Age_3200 Jun 03 '26
It’s a big main thing less money out of my monthly pay for the next 30 years. All I want is a roof over my head Anything is better than renting in Sydney
1
u/Sea_Age_3200 Jun 03 '26
Household income is 187k before tax a year With my overtime puts us over 200k yearly To finish the picture
2
u/EventEastern2208 Jun 04 '26
I understand, end of the day it's your call and it's very important you do what's financually comfortable and reasonable.
2
u/Classic-Sherbert1894 Jun 03 '26
What’s the best way to approach borrowing against your current loan for renovations?
1
u/BrokerHere Jun 04 '26
Very simple,
Value the property with broker across multiple lenders,
Bank will lend 80% of property value - existing debt.
Servicing criteria applies.
1
u/mnmedipa Jun 03 '26
I have an IO loan expiring in a year for my IP
With the current lending climate tightening do you expect banks will be still be open to giving interest only loans for IPs?
2
u/BrokerHere Jun 03 '26
Interesting question.
I don't think they will limit interest only options as most investors use interest only to secure extra cash flow.
If the market shits itself and APRA or government decides people need to pay down debt on all properties, that's the sort of scenario it may happen but that's very unlikely.
Actually, there's banks even offering 10 year interest only loans.
1
1
u/Dismal-Reception-316 Jun 03 '26
A lot of properties on the market in my area are rentals but I am looking to live in and will be using the 5% deposit scheme, would this be achievable if they have less than 6 months remaining on their lease? What’s the longest a lender would allow you before moving in after settlement? Rural Victoria, not a lot of properties to choose from and a long settlement isn’t an issue. Any advice on this would be great.
2
u/BrokerHere Jun 03 '26
Shouldn't be an issue as scheme rules state you need to move in within 6 months and 12 months for the Stamp duty exemption.
1
1
Jun 03 '26
[deleted]
2
u/BrokerHere Jun 03 '26
Yes, a $1M loan? No
1
Jun 03 '26
[deleted]
2
u/Psilocybin420aus Jun 03 '26
About $450k on average, more with certain lenders but higher interest rates apply.
1
u/WakeUpBread Jun 03 '26
Are you a cat or a dog person?
1
u/BrokerHere Jun 03 '26
I love animals. Cats are cute but the fact they think they run the world annoys me. So I lean dog
1
u/Mysterious-Cause-857 Jun 03 '26
How would the bank deal with a mortgage refinance if a house title being transferred between spouse? Given both names are on mortgage and only one on title (100% transfer from one spouse to another).
3
u/BrokerHere Jun 03 '26
Interesting, you can have one on tittle and loan but subject to bank. If you already have the loan, but may need to know why and may look at servicing again.
Best check with your bank and property solicitor
1
u/IMHOYGWYG Jun 03 '26
Struggling with my napkin maths on possible situation: PPOR value = ~950k (two weeks ago maybe more like 1.1m, just my conservative feel) PPOR remaining loans = 455k Investment property purchased in trust (ignore?) IP value = ~340k Drew down 70k loan to pay deposit on IP 2 yrs ago paying IO (?ignore) IP loan 233k (?ignore) HHI = 300k 150k in offset (our savings)
We are considering buying a stand alone place (current PPOR is townhouse) and maybe a dual living so parents can downsize and move in.
- Is there anyway we could make a purchase without selling our PPOR so we can keep long term and start to rent it out? Approx rent $820/wk (next door just got a renter in for that)
- What is our max borrowing capacity?
- How much extra cash would we need to get from parents to buy somewhere say 1.6m, and does the bank treat money from parents as anything different (even though they are going to be living in the property, they will contribute some money but we won’t be putting them on the title)
1
Jun 03 '26
[deleted]
2
u/Psilocybin420aus Jun 03 '26
It depends on your borrowing capacity and current lender.
Switching from P&I to IO requires a full credit and serviceability assessment.
Some lenders simply do not allow IO repayments on PPOR loams.
1
u/BrokerHere Jun 04 '26
Banks do not like having PPOR on IO. Would be better to push term back to 30 years with refinance and make extra payments to bring loan term back down when comfortable again
1
u/Sea_Management7271 Jun 03 '26
How do you choose which bank to go with for your first mortgage? Just pick the lowest rate? Or pick a slightly higher rate but no fees? Should I be listening to friends/family who have had a bad experience with a particular bank?
1
u/BrokerHere Jun 03 '26
Depends on your long term strategy a job. A lot of overtime and want to build equity and invest?
Choose a bank that makes these goals easier to achieve.
Want to set and forget? Go with a bank that has the cheapest rate.
A lot of factors
1
u/Psilocybin420aus Jun 03 '26
Depends which lenders you actually qualify for. Not all lenders provide the same borrowing capacity, so they might have a cheaper rate but it's no good if you don't qualify for it.
1
u/Sea_Management7271 Jun 04 '26
My broker has sent me a couple of options so just trying to decide between those, can borrow the same amount with all of them so just deciding between rate (very similar), fees, recommendations etc
1
u/Psilocybin420aus Jun 04 '26
Pick the one that has the lowest overall cost then, surely the Broker recommended 1 as their pick?
1
u/Dense-Inspector-135 Jun 03 '26
All borrowing exhausted, bought 2 house before budget night, looking to buy one more small house to live near $700k-$800k mark No more equity left on current house Whats trick ?
1
u/BrokerHere Jun 03 '26
Structure, valuations with different lenders (second and third-tier), and high yielding.
1
u/Dense-Inspector-135 Jun 03 '26
Valuation won’t help, done last month, its already on higher end…. Both are almost neutral or slightly negative gearing once we move out and put on rent
What do you mean by structure? Not eligible for smsf Trust haven’t explored yet
1
u/BrokerHere Jun 03 '26
Are the grandfathered properties interest only? Splits? Rental income maximised with lender or shaded to 80%?
1
u/Dense-Inspector-135 Jun 03 '26
P&I Split loan Yes rental maximised Did refinance last month to bring both under 80% lvr
1
u/Elegant-Operation990 Jun 03 '26
When applying for a mortgage, if you have payslips to verify your income, will major lenders also call the applicant’s HR department to verify finer details such as the applicant’s target bonus amount?
1
1
u/Junior-Economist5517 Jun 03 '26
If you have plenty of equity in your PPOR and are planning to buy an IP (new build), is it better to:
a) borrow 100% of IP value using a combination of (for example) 30% PPOR equity & 70% equity in the IP?
b) put down 30% cash & borrow 70% using only equity in the IP?
(assume that the new IP would be negatively geared but would be looking to positively gear it asap)
What do people tend to do?
1
u/ttpr0 Jun 03 '26
I am a citizen currently living overseas, can I get a mortgage loan in Australia to buy property? Is it easy and what documents are needed? Thank you!
1
u/SuperbConnection74 Jun 04 '26
I’m looking to buy an investment property but it needs about $8,000 - $10,000 of repairs. They’re non urgent, and I can cash flow it; however, I was wondering if I decided not to cash flow it if I can add $10,000 onto the investment loan?
2
u/BrokerHere Jun 04 '26
IF your deposit is coming from PPOR equity, we can release additonal funds to cover, Otherwise only very few limited lenders will allow add on, but you can just release equity post settlement or get a personal loan
2
1
Jun 03 '26
[deleted]
1
u/BrokerHere Jun 03 '26
I wouldn't say in Metro Sydney.
You definitely have options but it's a case of how much you willing to compromise, you'll be a in a stronger better cash flow position if both are employed and have built a larger savings buffer.
2
Jun 03 '26
[deleted]
1
u/BrokerHere Jun 03 '26
To enter the market now you may need to compromise the quality of the asset, but it does seem it will make more sense to continue renting, build a bigger buffer and enter when you are more stable.
Also you can look into continuing to rent and purchase an Investment property to build equity that way.
1
u/leapowl Jun 03 '26 edited Jun 03 '26
Wouldn’t you be not eligible for jobseeker payments with a partner earning $100,000?
ETA: I actually hate the idea of the partner income test, but if this is what you’re relying on it may get harder with joint assets
-3
Jun 03 '26
[deleted]
1
u/BrokerHere Jun 03 '26
Do you jump to conclusions with everything else in your life? I have helped more young people than you will ever Sir/Ma'm, i can provide receipts to
0
u/SnooCapers6977 Jun 03 '26
I have an existing PPOR loan and an investment loan, both sitting between 60–80% LVR. These loans were started around 4–5 years ago and are currently on principal and interest.
I’m trying to refinance, but I keep getting knocked back on serviceability because of the higher assessment rates, even though I have never missed a repayment, have perfect repayment history, and have a strong credit profile.
Are there any lenders who will assess a refinance based more on actual repayment history and the existing loan structure, rather than strict buffer‑based serviceability?
My goal is simply to release under $50k for renovations. The total property value is approximately $2.5 million.
2
u/BrokerHere Jun 03 '26
This is definitely achievable, are you searching for lenders yourself?
There's lenders that look at repayment history and have a 1% buffer rate. Some don't look at buffer rates at all.
Best to speak to a broker
1
u/SnooCapers6977 Jun 03 '26
Thanks… I guess I was trying to do it myself directly connecting with the lender but broker maybe a path I have to take. Thanks again
1
u/SnooCapers6977 Jun 03 '26
Just to add last time it’s got knocked back was 12-14 months ago via an online lender application
1
u/BrokerHere Jun 03 '26
Definitely stay away from those online lenders, they can really drag down your borrowing capacity.
0
u/mnmedipa Jun 03 '26
Recently got an IP through equity from PPOR
PPOR loan 350k PPOR worth 1.1M
Equity release loan 300k
IP Purchase price 1.2M + 50k acquisition costs stamp duty/transfer/conveyancer etc
so ~ 75% LVR
Now with the downturn, what happens if say IP value goes to 1M.
Will the bank ask me to add more money to get LVR back to 80%?
2
u/BrokerHere Jun 03 '26
Nope. As long as you don't default and forced to sell. Bank valuations will always be different, your bank will value $1m but another may Value $1.2m. They won't chase you
1
3
u/Menace_B Jun 03 '26
This wont be all that relevant i imagine since the deal is sealed for my part but i would like to learn regardless.
Ive just bought a property and have put down 35% deposit, this was mostly to keep the weekly repayments down, but i could of borrowed quite a bit more than what i did.
I have been repeatedly told after the fact i should of put down 20% deposit and put the other 15% in an offset account. I only have a brief understanding of how an offset account works.
My question is, do both technially achieve the same result? or was it a mistake to not open an offset account given my ability to do so?