What are my options?

[tiger]

I'm wanting to get a loan asap for our PPOR. The longer we wait the worse off we are, lifestyle wise that is.

Currently I see us as having to wait until July next year as that is when I will have 2 tax returns from my self employment. Right now I have only one to show.

My partner was employed in his previous job for 3 years but this year took up a casual full time roll. So he has not been employed for 2 years in this job, and its considered "casual" even though he is there full time. So many jobs are like that these days though.

I realise we probably wont be able to get a standard variable loan with these stats, correct?

Is it worth going for low doc, paying the extra interest/fees whatever, rather than waiting another 9 months?? In the meantime property prices are rising where we want to buy.

I guess my question is - Are the extra costs associated with a low doc loan bad enough that we should wait until we both have 2 years of employment to show so we can get a standard loan?
Or is it worth just jumping in now with a low doc? Keeping in mind that my partner wont even have 2 years to show next July.

Also where would that loan place us for future IP investments? The plan is to purchase an IP with equity off our PPOR once time allows, then springboard off that for future IP purchases.
Would refinancing a low doc loan be ideal, or best to keep it for the duration of the mortgage?

What is the general opinion on RAMS loans, full doc and low doc?

We want to be able to pay extra on the loan (assuming its ideal to do this on the PPOR, or not?).
Also are there any 90% LVR low doc loans or are we looking at 80% max? I know RAMS had 85% but unsure of what the restrictions are.

Im just getting an idea at this point, I will of course be seeking professional advice.

 

[WillG]

Very hard question to answer. Will depend how much deposit you have and how much the house will cost. If you find a house you could easily service (have lots of extra cash to speed up paying the mortgage) then I would go for it.

What price range are you looking at ? Have you considered a cheaper unit ?

 

[Spectre]

Tiger

cba revised their low doc criteria @end of august. you only need a 1 year abn and biz name must be recorded. max lend w/them is 80%+lmi capitalised to 2% so 82% all up

with low docs you can go to 95% but not thru your mainstream lenders

Rams has a certain market they hit on but then again so do other lenders.

As Will noted it depends what you have to kick in towards things too

You might also be able to do a servicing/security guarantee if available which will overcome your lmi issues.

Re your partner - if you can get a letter from the employer stating minimum hours per week some lenders will accept that.


Regards
Richard

 

[tiger]

Looking at properties 170k-180k

Will have 15k by end of the year but i fear that wont be enough

 

[Olback]

Bluestone and GE Money can do up to 90% LVR with some restrictions.

Also some lenders, such as CBA, will let you be only self employed for 1 year. There is normally some flexibility in there lending criteria if you are a good prospect for the lender.

I hope that helps.

 

[Spectre]

Tiger

If this helps.
Had some clients who were w/cba.
husband is casual working @58 hrs a week
wife is a hairdresser - just went s/employed about 3 months ago but she's had an abn for 3+ yrs from a prior business.

Went to a lender (one of the big 4) and said we couldnt prove her income so we just wanted to work borrowings on the husband

Lender said ok.
New loan approved unconditionally a week later.

So, my question is... if you're looking to borrow @170-180k your husband would have to be making say 40-45k pa to support it (as a rough figure)
(noting 5k c/card limit and no kids).

And you can then skip the low doc and (in theory) get a 95/97% lend at normal rates etc etc.

It just seems (on the surface) you might not have to low doc, and its sometimes a misconception between borrowers/potential borrowers and for that matter brokers that a low doc is the only route when it may not.

Regards
Richard

 

[tiger]

He isnt earning 40k, he is only earning 30k in this job. he is only staying in this job until we leave for Vic. no point getting another job now as it would just set us back worse.
He was earning 45k+ in his last job, doubt they'd take that into consideration though.

Hmm so looks like our chances are looking very slim at this point..