Dear Forumites, this is my first post on somersoft.
I am interested in buying a 3 bedder in sydney's west early next year. Though they are advertised at around 300-320K. By the time I purchase I will have a total 30K deposit (including the 14K FHOG). My partner and I will have a combined income of 35K, net (note we are 20, and I am a part time uni student, thats why its low). With the assumption that the bank will lend on the loan repayments being 30% of income we would be able to borrow approximately 220K (for a total purchase price of 250K), this is assuming we use a 6% interest rate and it is IO (which it would be, with 100% offset). We would live in it for 6 months as our PPOR then move back with parents and turn it into an IP.
My question is, is the 250K right? My partners dad says he will go guarantor for us, how much does this help us out.
Also with the income proof, do they ask for previous tax returns, because if so we stand no chance in hell at getting any loan, there would need to be a sort of recent (last month) paychecks for us to prove this 35K annual net income.
What does everyone think?
Chris
I am interested in buying a 3 bedder in sydney's west early next year. Though they are advertised at around 300-320K. By the time I purchase I will have a total 30K deposit (including the 14K FHOG). My partner and I will have a combined income of 35K, net (note we are 20, and I am a part time uni student, thats why its low). With the assumption that the bank will lend on the loan repayments being 30% of income we would be able to borrow approximately 220K (for a total purchase price of 250K), this is assuming we use a 6% interest rate and it is IO (which it would be, with 100% offset). We would live in it for 6 months as our PPOR then move back with parents and turn it into an IP.
My question is, is the 250K right? My partners dad says he will go guarantor for us, how much does this help us out.
Also with the income proof, do they ask for previous tax returns, because if so we stand no chance in hell at getting any loan, there would need to be a sort of recent (last month) paychecks for us to prove this 35K annual net income.
What does everyone think?
Chris