Hi ladies, just wanting some info on home loans. Has anyone successfully used the current rebates available as their deposit with a good rental history and good credit rating? I've been working really hard to ensure my credit score is great but feel like saving 5-10% is almost impossible for me. Is it possible to use your tax rebate as part of a deposit? I currently have around $3000 from tax.
I earn around $45 000 a year working part time and also get around $1200 a month from Centrelink but this includes rent assistance and have 2 young children. I'm waiting to speak to some finance brokers but thought I would ask here as well. What are my chances of getting a home loan with my current circumstances? Desperately just want to own my own space.
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Speak to a broker. It’s really going to depend on where you live. If you live in a capital city I doubt you will be successful. And children decreases the amount you can borrow significantly especially on one income.
From my understanding, the absolute minimum deposit is 5% plus you need to be able to cover the cost of the actual sale process (this could be around $20k on a 350k house) separately from the home loan. The less of a deposit you hold the higher MLI (mortgage lenders insurance) you will be smacked with.
Google home loan calculator. A good one will factor in everything. Your income, all kinds of out goings (be honest here as they want to see every sent you spend), number of dependants, Centrelink entitlements etc.
Absolute minimum is 5% but once you start looking further into it, you'll start to realise it makes things super tight and 10% makes a massive difference
Thats what I found. Im clueless but this is also my goal, and Ive decided to keep growing my savings and wait another year and theyre predicting housing prices are going to crash due to the pandemic.
Can you use someone else’s house as collateral?
Obviously if you can afford the repayments.
Remember you will lose rental assistance if you buy.
Read Barefoot Investor!
Speak to a broker. I work for a bank validating home loans. Most banks aren't accepting the additional grants for deposits or funds to complete due to the strict restrictions on them and the criteria around them. Some banks might take them but a broker will.know which ones will. The broker can also do serviceability calculators with you and show you how much you can afford to borrow on your wages. Rental assistance can't be used for servicing and not all Centrelink incomes either so best sitting down and going over it with someone and getting the best information for your personal situation. Close all credit cards of possible as this increases your borrowing capacity.