Car Loan affect Servicability?

Just wondering how significant an effect getting a car loan can have on loan servicability for a PPOR?


Currently wife and I earn 50k and 52k plus super so 102k combined p.a. f/t perm employment. we have 5k credit card limit. we had a 15k car loan from a few years ago which we now owe only 7.5k on it. repayments on that are $75pw.

We are tossing up buying a new car now, which would mean the car loan amount would be $27000. based on current interest rates this would mean the repayment will increase from 75pw to 125pw (50 extra) over a 5 yr term.

in the next 6 mths we plan to get a LVR95% loan on either an IP or PPOR around the beenleigh qld area for approx $300,000 purchase price (so 15k deposit, 285k loan amt).

If we get this 27k car loan, will this mean it will be a push to get the home loan in the coming 6 months? I don't want to risk getting the new car if it will put us years back with being approved for a home loan.

we have a great credit history and have had home / pers loans in the past which we have paid back full on time every time. my income is likely to increase in July this year by around 5%.
 
Absolutely! I missed a property once, (a good buy) and when it was all over I realised that it was a car loan with only a few months left to run that killed it. I could have paid out the loan and done the deal but my MB was too dumb to know why we were refused. It was another loan officer who pointed it out, but too late.
 
Hiya

I think the biggest issue may be that you will be bounced on credit score

32 k total personal ( at limit) debt is a fair chunk on 100 k income if you are chasing a 95 % lend
.
If u are looking to take the loan with the same lender u have had all the other loans with, the old loan history may work for you. If you have little histroy with the new lende, then your previous positive history doesnt matter much

ta
rolf
 
No disrespect, but why do you need a "new car loan" when you haven't finished paying off the previous one?

Don't need to answer than in public, but maybe you need to "have a good, hard look at yourself" :D about this one, especially since it will impact your loan app!

Just putting the idea out there - do you really need a new car?

(Maybe you do - again, not expecting an answer, just hoping to buzz the brain cells.)
 
There is no way I would buying a car before getting the home loan. It will definitely impact your serviceability. Unless the old car is dead, get the house finance in place first & then see if you still want the car.
 
Crystal ball, when you retire and you're self sufficient vs not self sufficient because the car loan got your investment strategy derailed...
 
Top