Mortgage Applicant Age

[outbackjack]

Hi All,

I am hoping next year I can have another crack at property invesment. I need to tidy up the 40k credit card debt. Mostly from trying to prop a business I had.

Most of the credit cards I have are not listed on my Veda file. Only one.

My question is next year I will be 45, do lenders look at age? If so how big an impact is it?

 

[Rolf Latham]

Hi All,

I am hoping next year I can have another crack at property invesment. I need to tidy up the 40k credit card debt. Mostly from trying to prop a business I had.

Most of the credit cards I have are not listed on my Veda file. Only one.

My question is next year I will be 45, do lenders look at age? If so how big an impact is it?

my oldest new mortgage loan applicant was 84 : ) , and yes we were succesful.

much comes down to your overall capacity and 45 should be ok unless u have some issues with your asset and liabilities being way out of order for age and income

ta
rolf

 

[MattKenworthy]

As Rolf said 45 should be fine - most lenders just want to see an exit strategy of sorts (i.e. can you fund the loan out Superannuation at retirement, is downsizing an option).

In particular though if it's an investment property rather than an Owner-Occupied property it shouldn't be an issue at all though as your exit strategy would be to sell the property if necessary.

 

[outbackjack]

OK thanks for the speedy response.

I have finally settled into a permant job, rather my own business and contract work.

Not a big paying job(compared to contract work) around 70k, plus , district allowance, overtime etc, they pay my rent, use of vehicle etc.

I do have two investment properties, but they are not doing too well.

One I owe around 150, worth around 180, rented for $210 per week
other owe around 250, worth around 230, rented for $340 per week. Not sure how long this rental rate will last, propety is in Mackay.

We own outright two vehicles, worth around 30 or 40 K in total, no real cash in the bank at the moment. But plan to get credit cards down and also putting savings aside.

Since I have the job, I thought I would have another crack next year in investment property. I do have a blip on my Veda file, it comes off next year in August. It was a judgement for rates not paid, Stuff up, book keeper didnt pay it on time, I was OS.

So long story, but was concerned if I leave it too late, I might find it harder to get a loan.

 

[MattKenworthy]

Probably fair to say there's bigger issues than your age to sort out - being negative equity on 1 property which i'm assuming is cross-collateralised the major one as well as carrying a fair bit of 'bad' debt which you've identified as an issue going forward. As mentioned though given your age is unlikely to be an issue you've got time on your side so no need to rush in until you're ready.

 

[outbackjack]

Yep both properties are X Coll. Was a victim of Homeside and my broker, not explaining things to me. Not to mention I should have done a bit more research.

I wouldnt use Homeside, so was hoping the propeties wouldnt cause to much of an issue.

Just got to get credit card debt down, but dont see that being much a problem as they are not listed as a lender etc on my credit file.

 

[jrc77]

You still need to list them on any loan application - even if not showing on your credit file.

Regards,

Jason

 

[outbackjack]

Understand. As I pay them off I would cancel them.

 

[Mick C]

OK thanks for the speedy response.

I have finally settled into a permant job, rather my own business and contract work.

Not a big paying job(compared to contract work) around 70k, plus , district allowance, overtime etc, they pay my rent, use of vehicle etc.

I do have two investment properties, but they are not doing too well.

One I owe around 150, worth around 180, rented for $210 per week
other owe around 250, worth around 230, rented for $340 per week. Not sure how long this rental rate will last, propety is in Mackay.

We own outright two vehicles, worth around 30 or 40 K in total, no real cash in the bank at the moment. But plan to get credit cards down and also putting savings aside.

Since I have the job, I thought I would have another crack next year in investment property. I do have a blip on my Veda file, it comes off next year in August. It was a judgement for rates not paid, Stuff up, book keeper didnt pay it on time, I was OS.

So long story, but was concerned if I leave it too late, I might find it harder to get a loan.

Age is fine as long a you have some asset to match it...and it looks like your asset are ok...

However if your thinking of going for an 95% + LMI loan....you better plan carefully and work with a broker now and get him/her to work with you for the next 6 -12 month until your ready.

 

[outbackjack]

Mick C,

Cheers for the heads up. I did contact my old broker, however it all seemed a little too hard for him.

I want to avoid LMI, it has cost be dearly in the past, when I did have four properties all X COLL. Seemed like each time I refinanced etc, another big chunk was given to them, when I sold, got nothing back.

I am thinking of a property around the 250k to 350k mark, and hope to have the 10 percent deposit, this I think will save some hassles.

 

[Mick C]

I love your drive!!!

Yes x-cross with LMi is extremely costly!! reason why i always avoid x-crossing loans...

May take you a while to save the 10% + stamp duty + pay off the CC debt...but one can only try

Keep it up!!!!

Tip- ask your accountant to carry out a PAYG variation... meaning you can claim some of your tax benefit from your investment on a monthly basis rather then wait till the end of the financial year...meaning you get access to the cash NOW to pay off the CC./

 

[Mick C]

Cheers for the heads up. I did contact my old broker, however it all seemed a little too hard for him.

Shoot Rolf an email...his in QLD...not sure how "up" north his located tho...But email/ phone these days are handy

 

[Aaron_C]

Mick C,

Cheers for the heads up. I did contact my old broker, however it all seemed a little too hard for him.

I want to avoid LMI, it has cost be dearly in the past, when I did have four properties all X COLL. Seemed like each time I refinanced etc, another big chunk was given to them, when I sold, got nothing back.

I am thinking of a property around the 250k to 350k mark, and hope to have the 10 percent deposit, this I think will save some hassles.

Get your structuring right and things will be so much easier for you.

 

[Weasil007]

OK thanks for the speedy response.

I do have two investment properties, but they are not doing too well.

One I owe around 150, worth around 180, rented for $210 per week
other owe around 250, worth around 230, rented for $340 per week. Not sure how long this rental rate will last, propety is in Mackay.

We own outright two vehicles, worth around 30 or 40 K in total, no real cash in the bank at the moment. But plan to get credit cards down and also putting savings aside.

Since I have the job, I thought I would have another crack next year in investment property. I do have a blip on my Veda file, it comes off next year in August. It was a judgement for rates not paid, Stuff up, book keeper didnt pay it on time, I was OS.

So long story, but was concerned if I leave it too late, I might find it harder to get a loan.

With your own assessment of the investment properties not doing too well you now want to get another one? Am I missing something? What happens if the value of the two you have further drops, where will this leave you? If you were to get bank valuations on these you may actually need to stump up some more cash to get the equity up, let alone financing a third!

You cars in my opinion are irrelevant. I presume you need them for transport and the value from here on in will drop. These are not an asset (unless of course you plan on selling them to free up the money and using public transport?).

You will always get finance if the deal stacks up so whats the rush...

 

[outbackjack]

I only mentioned the cars, as most lenders want to know what you have and dont have.

I guess there is no rush and it will probably be 12 months before I do anything, But I want to plan ahead so I have the best chance.


I am not sure my properties can go down any more? Famous last words I guess.


One I owe around 150, worth around 180, rented for $210 per week
This is a four bedroom house in Nanango, I paid 4 or 5 years ago for what its worth now. So I am hoping it will pick up sometime

other owe around 250, worth around 230, rented for $340 per week.
Is a 2 Bedroom Unit in Mackay. Its any bodies guess what happens there. But hopefully it will still increase.

I did have two other propeties, they did really well, But a bad business took all the gain when I sold them.

Lesson learnt there.


So hence the post. I want to make sure, when I put in the next application, I am not wasting anyones time and hopefully get a property with some better CG than I currently have.

Not sure on the rental returns I am currently getting, but dont think they are not too bad. Its the CG which is the killer.