Which lenders have the lowest buffer rate?

[cooldude69]

Looking at purchasing a property as primary place of residence in Brisbane:

Numbers:

Purchase price: 782k
Stamp & Fees: 25k
Tot: 807k

Deposit: 181k
Loan needed: 626k
LVR =0.8

The only problem is my base salary is only 81.5k/annum. I'm not to concerned about servicing the loan however as I have flatmates who are keen to move in paying a total 22k/annum.

Which lenders crunch the numbers at the lowest buffer rate? And will in turn lend me the most money? It seems they are all doing it around 6.8%-7%

I'm not keen in buying it as an investment property though.

Thanks in advance guys.

 

[Jamie M]

Do you have any other liabilities?

Advantedge have quite low assessment rates depending on the product. No offset though. I had a quick look - might be able to stretch it to $620k (ish).

Cheers

Jamie

 

[cooldude69]

No other liabilities whatsoever and not to bothered about an offset either.

 

[Peter_Tersteeg]

I think the real question you're asking here is which lenders have the most generous serviceability?

There are certainly some lenders with very basic loans at low rates, but I suspect their servicing criteria isn't quite as good as some mainstream due to the secured nature of their lending.

Without knowing your financial specifics, it's not possible to give any sort of estimate of your borrowing capacity. A lot more information than a simple salary figure is required.

Your best option to determine your affordability with a lot of different lenders, is to contact a broker.

 

[cooldude69]

My other details are that I have no other assets or liabilities, im 27, been in my current job for 2.5 years, single, no children my annual living expenses are 13.2k. I have tried a mortgage broker but he was only searching companies with serviceability rates of between 6.8 and 7%.

 

[Peter_Tersteeg]

My other details are that I have no other assets or liabilities, im 27, been in my current job for 2.5 years, single, no children my annual living expenses are 13.2k. I have tried a mortgage broker but he was only searching companies with serviceability rates of between 6.8 and 7%.

A quick glance at the various lenders in your software suggests that most have an assessment rate of 6.8% to 7.4%, with a couple higher still.

Westpac has an assessment rate listed on 4.84%, but they have additional internal calculations which make this irrelevant. The assessment rate is only one element used and there are several different overall techniques.

Based on a super quick assessment with nothing other than a single person with an income of $81,500, you may be able to borrow what you're after. A more comprehensive discussion would be necessary however.

 

[Mick C]

Without knowing your financial specifics, it's not possible to give any sort of estimate of your borrowing capacity. A lot more information than a simple salary figure is required.
.

^ As pete mentioned, Will need a lot more info....Westpac which has a low serviceability ratio doesn't automatically mean they will lend you the most- as it depends on your scenario- married/kids etc...

Each lender has
- Diff serviceability ratio
- Diff debt ratio
- Different "living expense"
- Different NSR limits etc...

Some will lend more if you fix....while others wont care if its fixed or variable.

 

[Marty McDonald]

Looks a bit too tight to me...600k topped out at

 

[Corey Batt]

Yup unfortunately absolute maximum I'm coming up with is 608k. In saying that, might be worth looking at your payslips as you may have accrued overtime/other payments during the year which may push your income above your expected base and get you over the line.

 

[Peter_Tersteeg]

I ran the income of $81,500 with no other figures at all through a very quick and nasty Genworth calculator. It came up with more than $700k.

It's in no way reliable, but it does warrant a little further investigation.

 

[Redom]

Similar numbers to the above (around 600-620k).

I punched the scenario into Macquarie's calculator (who are one of the more generous lenders) - and it spat out 615k at best.

As others have mentioned - its a little inaccurate without a complete picture.

Good luck,
Redom

 

[Qlds007]

Agree Mac Bank for me came in circa 615K.

If you were happy to fix a part of the loan you might get over the line with a couple of lenders.

Cheers