Hi all, here's our situation:
We have our IP (former PPOR in another town) currently tennented at $350 pw. We have moved and have been self employed for a year. IP was valued at $300,000 2 1/2 yrs ago, currently owe $216,000 on mortgage. Mortgage consists of $170,000 fixed at 7.74 % til Oct 2010 and $50,000 variable at 5.89%. The mortgage is P&I. We are partners in a Small Business with another couple, as of June 2010, the Business will be 20 months old and have completed 2 Tax Returns. Income as follows:$47,000 (husbands drawings)
$18,200 (gross rent from IP)
$26,000 (tax free Centrelink FTB and Carers)
$91,200 Annual income
We are currently renting for $330 pw but want to buy a PPOR under $400,000 here. We've been looking at properties around $370,000-$380,000. We are obviously not ready to buy just yet but I have a couple of questions;
1. Would we be restricted to Low Doc only due to being self employed?
2. Should we have our IP valued again to check for equity etc?
3. How do you think the Bank are going to view our finances given the GFC?
4. Should we go IO on our mortgage considering we need to pay it down to raise our equity?
5. Where should we aim to be equity/deposit wise (and avoiding LMI) before applying (need $400,000)?
I apologize if I haven't included everything or haven't been clear enough. We are also with One Direct Home Loans, they are being phazed out and we would have to switch to ANZ once our Fixed term is up I think? They aren't taking on any new loans, only existing ones but we don't want to stay with them once the fixed term is finished anyway. Anything else I have forgotten?
Thankyou for your time!
We have our IP (former PPOR in another town) currently tennented at $350 pw. We have moved and have been self employed for a year. IP was valued at $300,000 2 1/2 yrs ago, currently owe $216,000 on mortgage. Mortgage consists of $170,000 fixed at 7.74 % til Oct 2010 and $50,000 variable at 5.89%. The mortgage is P&I. We are partners in a Small Business with another couple, as of June 2010, the Business will be 20 months old and have completed 2 Tax Returns. Income as follows:$47,000 (husbands drawings)
$18,200 (gross rent from IP)
$26,000 (tax free Centrelink FTB and Carers)
$91,200 Annual income
We are currently renting for $330 pw but want to buy a PPOR under $400,000 here. We've been looking at properties around $370,000-$380,000. We are obviously not ready to buy just yet but I have a couple of questions;
1. Would we be restricted to Low Doc only due to being self employed?
2. Should we have our IP valued again to check for equity etc?
3. How do you think the Bank are going to view our finances given the GFC?
4. Should we go IO on our mortgage considering we need to pay it down to raise our equity?
5. Where should we aim to be equity/deposit wise (and avoiding LMI) before applying (need $400,000)?
I apologize if I haven't included everything or haven't been clear enough. We are also with One Direct Home Loans, they are being phazed out and we would have to switch to ANZ once our Fixed term is up I think? They aren't taking on any new loans, only existing ones but we don't want to stay with them once the fixed term is finished anyway. Anything else I have forgotten?
Thankyou for your time!