How long til i can get a loan?

[dryath]

Hey guys,

For all you savvy guys who know this sort of thing to do with mortgages *cough our resident guru mortgage brokers*. I just wondered how long until the banks will lend to me.

My situation:
Currently on a 4 week temp contract on $25/hr working 36.25 hours a week.
Have pretty much been told that I will then be offered a 6 month contract at the same hourly. so i guess ~47k / year.
Likelyhood is that at some point during or at the end of this contract I will then be offered a permanent role. It will likely be paid a shade over $27/hr.

Current Assets:
~65k shares
~100k cash in bank

Since I really have no idea on the feasibility of this i'm throwing it to you guys hoping you can help =)

Ideally I would like to be buying an investment property in the range of 350-400k (obviously my first) - which I would like to live in for 6 months before renting out so it can be CGT free going forward 6 years.

If anyone could advise on how long I need to be working? / If my income is too low? etc etc. I guess also ideally I would not want to just be throwing all my cash into a large deposit to make the bank lend to me, so I hope that 20% is worst case? - but maybe even less?

Thank for reading and for your input guys!

Cheers
dryath

 

[Peter_Tersteeg]

You can't do much on a 4 week contract, but once you've signed the new contract it should be a lot easier.

 

[tobe]

Id suggest trying 3 months into the 6 month contract. You could try earlier, but its line ball. Have you any history in the same industry?

In terms of borrowing capacity, your income is only one component, we need liabilities, rent received, rent or board paid etc to give you a good estimate.

 

[Aaron_C]

Depending on LVR it should be fine once the main contract starts.

 

[Brady]

As above after 3 months into the role or when new contract starts, unless been in the same industry.

 

[Mick C]

3 month on contract with another 3 month to go when you apply if your wanting to go for a 10% deposit loan...else on a 20% deposit 3 month min.

 

[dryath]

Thanks for the replies everyone!

Id suggest trying 3 months into the 6 month contract. You could try earlier, but its line ball. Have you any history in the same industry?

In terms of borrowing capacity, your income is only one component, we need liabilities, rent received, rent or board paid etc to give you a good estimate.

in terms of this - I would hazard a guess that I would be saving around 1/4-1/3 of my gross income.

--- So in terms of the amount that I am after, I should be ok? - not going to be limited by my income here for this loan size?

can't believe no brokers from brissie replied! - I had intentions to chase those guys up in the near future, haha.

thanks again everyone, really appreciate the help =)

 

[Peter_Tersteeg]

in terms of this - I would hazard a guess that I would be saving around 1/4-1/3 of my gross income.

--- So in terms of the amount that I am after, I should be ok? - not going to be limited by my income here for this loan size?

There's simply not enough information to answer this question. At Tobe indicated, there's a lot of factors that contribute to affordability (or lack of affordability).

You'll almost certainly need your income to make it work so you need to get the new contract in place before you can be in a position to borrow money. You'll also need funds for a deposit on any property you purchase.