I'm a single parent in WA. My main source of income is centrelink (carers/FTB). I want to buy a home - only around 100-120k. I work casual, part time. I have a guarantor.
After advise on the best lender for someone in my situation? I'm considering keystart, but they don't seem to be willing to lend as much as a bank might. Of course the small deposit & 0 history of savings is the appeal here (I am working on savings).
Can banks take into account long term rent payments? I currently pay in rent more than twice the mortgage repayments on this amount.
Any advice or experience would be great.
Thanks
Single parent home loan
Single parent home loan
Posted in:
Money
4 Replies
At this stage the banks don't take into account rental history however it could be a means of how good you are at paying things back/on time if you can get a declaration by the landlord or agent. But in terms of savings / income they don't factor it in. There's talk they will eventually though! I'd still contact a broker and have a chat as they will be able to work something out for sure :)
I thought you could only get a home loan if your main source of income is NOT Centrelink payments, and only certain payments at that. Does having a guarantor negate that?
It depends on payments & the lender. Nothing to do with guarantor. Parenting payment will usually only be taken into consideration depending on the age of the children, because it gets cut off at certain ages now.
Carers & disability are usually accepted as income.
Update: I have some idea of what I'm doing. I live in an area where this price IS realistic. Look outside the cities.
Shared ownership isn't an option, as they sell their own houses, I'm out in the country, they don't offer houses where I am.
My guarantor is in the situation to be able to do so, we looked into this a few years ago, so know the details.
As stated in the OP, I pay twice these repayments in rent. I am aware of insurance costs, interest rises & rates. I'm also obviously aware centrelink doesn't pay rent assistance on a mortgage.
I am wanting to borrow an amount that I know I'll be able to repay no matter what happens to the housing market. I'll be paying extra to release my guarantor as early as i can.
My borrowing amount is extremely realistic for someone in my situation. And this includes extra for fees, connections etc.
I've researched, googled & asked every detail, then come here to ask experiences. I'm not intending on jumping in over my head, repayments I can't afford & no clue how it all works.