Borrowing Capacity
- Thread starter dmv1988
- Start date
the rental income will come from a friend who has already agreed to rent a room off me for this amount should I purchase the property i have in mind. I understand that given this is propspective income that it may alter borrowing capacity although was just after an indication.
And yes i understand that there is more to borrowing money than purely borrowing power, although i believe that this was going to be my main hinderence to the process....i have been saving for 4 year and now i may finally be in a position to make my home purchase, pretty exciting stuff!
And yes i understand that there is more to borrowing money than purely borrowing power, although i believe that this was going to be my main hinderence to the process....i have been saving for 4 year and now i may finally be in a position to make my home purchase, pretty exciting stuff!
I take it your applying as an FHO? if so this might clash with your " rental " and the grant may be pro-rated based on usage.
Also borrowing capacity is not as simple as looking at your income and credit card limit, another important factors to look out for.
Since your in VIC, why not give Arron_C a call or email and he be able to give you a accurate figures and advice.
Regards
Michael
Also borrowing capacity is not as simple as looking at your income and credit card limit, another important factors to look out for.
Since your in VIC, why not give Arron_C a call or email and he be able to give you a accurate figures and advice.
Regards
Michael
Hi dmv,
You should be aware that whilst your friend renting a room may help you afford the property, if you intend to live in the property yourself (possibly claiming the $7000 grant), lenders won't take into account the rent your friend is paying. This in turn would reduce your borrowing capacity.
If you're going to rent the property fully tenanted and live somewhere else, you'll need to declare what your costs of housing are (either an existing mortgage, rent you're paying yourself, or even a 'renting allowance' if you're living with family). Again this will impact your ability to borrow money.
The information you've disclosed so far doesn't go into enough detail for you to get specific recomendations on your ability to borrow at this point. You should definately contact a broker prior to signing a purchase contract.
The reason I suggest a broker (over going direct to a lender), is different lenders have different policies regarding the parameters above. A good broker will be able to help you navigate straight to the right lender for your circumstances.
Hiya
What can YOU afford to repay in specific dollars each week and what does that leave you over for buffer ?
ta
rolf
What can YOU afford to repay in specific dollars each week and what does that leave you over for buffer ?
ta
rolf
hi,
I save $2,500 a month (im only 22 so this is a lot of cash to me). This leaves me with enough cash to cover all my expenses (i.e. fuel, public transport, phone etc) plus around $120 spending month a week which is sufficient.
Obviously this does not have regard to any rental income which i will receive once i eventually purchase a place.
Any thoughts?
I save $2,500 a month (im only 22 so this is a lot of cash to me). This leaves me with enough cash to cover all my expenses (i.e. fuel, public transport, phone etc) plus around $120 spending month a week which is sufficient.
Obviously this does not have regard to any rental income which i will receive once i eventually purchase a place.
Any thoughts?
The lender doesn't look at your saving pattern, you could tell them you live at home rent free and only spend max $20 a day for the last 6 years...it won't make a diff....
They are only concern with
1. Deposit
2. SOLID income
Regards
Michael
They are only concern with
1. Deposit
2. SOLID income
Regards
Michael
cant agree with that, ability to show you can save more/same as repayments is very helpful with many lenders,
plenty of 90 % non genuine savings out there in any case, and at least one or 2 at 95
ta
rolf
plenty of 90 % non genuine savings out there in any case, and at least one or 2 at 95
ta
rolf
