How much can I service

Hi guys,
Just wondering if anyone out there with those nice loan programs could run some figures through them for me.

I'm buying a property for $275k have put $15k down as a deposit so far.

I'm on $42 500 base salary with performance bonuses up to 20% per year (10% per 1/2 yearly period) with a track record of receiving between 7-10% each period (paid half yearly, my last bonus was 10%)

My parents are going guarantor (I know many on here don't like it), I have enough cash with the FHOG to get an 80% loan, but this would leave me with only a couple of thousand dollars which isn't a smart idea as it leaves nothing for a rainy day.

I have no credit card (just canceled it/payed off), no other loans/debts at all.
My cost of living is under $1000 a month (but I pay only $100 a week for rent/water/electricity) so I guess the banks would use whatever their minimum allowed figure.

So my question is, how much would ANZ, NAB lend to me? Would they take my bonuses into account?

Been employed with the same employer for 5 1/2 years and 2 years in current role (which is when I started to receive bonuses).

I was told by a MB that ANZ would only lend me $220 000 for servicability which seems to be far too low, ANZ told me that $250 000 wouldn't be a problem when I talked to them back in march (I realise things have changed since then, but their online calcs tell me a vastly different story too).

Edit: Also would splitting my loan 50/50 fixed/variable increase my lending by a significant amount?
 
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With regard to your performance bonuses, what would your group certificate amount have been for the last 2 years ?

Are you planning on living in the property and are you eligible for FHOG ?

Are your parents willing to go guarantor by providing security only, or would they be willing to provide a guarantee with their income ( if they have one )

If purchasing as an investment , what is the expected rental ?

Would other lenders interest you if their max loan was higher based on your income ?
 
I would have thought it would decrease it seeing as half of your loan would be on HIGHER Interest rate
Haha, yeah you would think so, but I remember hearing that its a risk reduction, as you have steady payments, won't find yourself having to suddenly pay another $50-$100 a month when rates rise, and possibly again in another 3 months ; D

With regard to your performance bonuses, what would your group certificate amount have been for the last 2 years ?

Well, last years was just over 46k, but the year before was when I changed jobs, wasn't eligible for them for half the year and got the new position which gave me a significant pay rise, so its probably only around the 40k mark.

Are you planning on living in the property and are you eligible for FHOG ?

Yes to both questions.

Will become an investment property in the future

Are your parents willing to go guarantor by providing security only, or would they be willing to provide a guarantee with their income ( if they have one )

I thought you could only guarantee income for a spouse?
They will do either/both.

Would other lenders interest you if their max loan was higher based on your income ?

None really, not because their products don't suit me, parents are with ANZ so need to go with them for guarantor (or so I'm lead to believe by the banks/MB, as they already have a 2nd mortgage (not sure if its called that) for 40k when they went guarantor for my brother).

I am just curious as to whether those figures seems right for ANZ (NAB because that's who I think i'll go with if ANZ won't lend me 250-260k.

Edit: Just saw that Commbank does let you increase your loan size with an income guarantee from...lol, not even a direct family member if the amount is under 50%.
 
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Dunno what your MB is on about. Even on base salary ANZ would lend $250k with what you have said even allowing for a 0.25% increase next week). To take your parents out of the equation have you thought of either borrowing say 85% and capping LMI or going in at 80% (assuming you have all other funds to complete) and say get your parents to lend you say 2-3k to add to your cash buffer. They (and yourself) maybe more comfortable with this arrangement.

Fixing a portion of your loan may cause more problems with application/servicing but this can be gotten around post settlement (risk fixed rates increasing though),

Regards
Steve
 
Dunno what your MB is on about. Even on base salary ANZ would lend $250k with what you have said even allowing for a 0.25% increase next week). To take your parents out of the equation have you thought of either borrowing say 85% and capping LMI or going in at 80% (assuming you have all other funds to complete) and say get your parents to lend you say 2-3k to add to your cash buffer. They (and yourself) maybe more comfortable with this arrangement.

Fixing a portion of your loan may cause more problems with application/servicing but this can be gotten around post settlement (risk fixed rates increasing though),

Regards
Steve

Cheers Steve,
It seemed odd to me, I guess I'll have to go back over all the numbers with him and make sure he has them down right on monday, didn't want to get pushy without being 100% sure.

I have looked at options like paying it down, but ultimately the best thing for me is to get max lend and keep the cash in an offset, 40k for a rainy day is much better than equity which won't be tax deductible in the future and needs the banks permission to access.

I've talked with my parents and my parents have been talked to by lawyers trying to talk them out of guarantor with my brother, they are 100% comfortable with it, if they couldn't afford to cover the loans relatively easily if something were to happen (like I got sick or something) then they wouldn't feel 100% comfortable with it, but neither would I and would pay it down instead.
 
You can service as much as you wish, just need to structure your purchases correctly so each one you buy will add to your serviceability.
 
Based on your salary (excluding bonuses which aren't guaranteed) of $42500, if you apply the old rule of Banks of only 35% of your income applied to all loans to be safe and still live, you could service $286 p/w.

On current rates of approx 5.5% (call it 6% for safety), you could borrow around $250k.

Now, I'm sure you could massage the whole scenario and get up a fair bit higher, the Banks aren't as accommodating as they were even 12 months ago, so don't get the expectations up too high.

You want to start off with a nice, safe, easy time of it - at least for the first 12 months or so, and get some extra emergency funds behind you as soon as possible.

Hot water services blow up, so do air cons etc; and often all together....

The bonuses will be the rainy day buffer you can feed into the 100% offset with a redraw. ;)

If you were borrowing to buy an IP from day 1, the Bank would also take into consideration a portion of the rent as serviceability. Most are only around the 70%, but some are higher. The MB will know this
 
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