So, we have moved a few times in the last couple of years (rentals). My 7yo said to me completely out of the blue the other day, mum can we buy a house now so we don't have to move all the time. My heart broke!! It is something I've always wanted but never achieved. Now were in our 30's with 3 kids, I want it more than ever!! I'm a stay at home mum on centrelink only and my husband works full time bringing home just over $1000 a week. The only expenses we have is $300 week on a p/loan and $350 a week on rent. We have no savings at all but husbands parents said they would be guarantors. Where do we start? Would we have a good chance getting a mortgage? Any and all advice, help, recommendations are appreciated!!!! Please help me get the ball rolling. Thankyou!!!!!
7 Replies
Start with a mortgage broker. They can tell you what you need. And if you have a chance.
But even if you do have a guarantor you will more than likely need a 10% deposit. So I'd start getting some savings.
Plus you will need to be able to pay stamp duty and taxes as that's not covered under the loan.
Some of this will depend on where you live as buying in somewhere in Sydney is more expensive than somewhere like Adelaide.
I'm in the same position. I've just moved for what I hope will be the last time, until I can buy.
First I'm just going to save money for a year or so, hopefully around $10 000 or more, and then I'll start talking to banks and finding out what I need exactly.
We're on exactly the same income pretty much and just got a mortgage last year. Your debt will likely hold you back. You need a five year plan. We had 50k savings I saved in five years by saving ALL my family assistance, and all our tax refunds for the five years, and living off hubby's wage while renting. Occasionally we went backwards. Had three kids. Also in our thirties. We literally cut back every expense.... BUT we had no debt. So what you need to try and do is pour as much money as you can into that loan. A bank won't even look at you with no savings if you have debt. We even had to pay out an $800 interest free GE Loan and close that card (used for furniture) before they'd lend us. So go over a your expenses and cut it all back. We had no holidays, no booze, no gyms, budget shopping, minimal takeaway etc.. I really scrimped and saved. On one income that is what you have to do. We just built a new house on a 3/4 acre block only 40 mins from Brissie and we owe just under 300k. As much as being a tight arse saver Sucks, it's worth it.
But we also didn't have any guarantors or any help at all. So not sure, if a bank will be less strict if you have that.
Go to your bank - you won't need a deposit if you have a guarantor (I work at a bank). You can hop on their website & pop I'm all your details (income, expenses) & that will give you a really good idea on your borrowing ability. Once you have an idea if it's feasible for where you live, book an apointment with a lender at your bank who can give you a preapproval even before you've found a property - this will 'lock in' the approval as long as your circumstances don't change & then you can look around with the confidence of knowing that you can sign a contract and finance is already sorted.
Where do you live? I'm in Melbourne and in a pretty working class suburb. Our mortgage is 750 a week
Where do you live? I'm in Melbourne and in a pretty working class suburb. Our mortgage is 750 a week