Reena1991 Posted November 23, 2014 Share Posted November 23, 2014 Hi, we will find this out for definite when we arrive and speak to a broker but just wanted to gauge a general consensus so I can prepare myself for what's possible when we (hopefully) feel settled and ready to buy a house. I just wondered if it's possible to get a mortgage based on these figures and if anyone new roughly how much of a mortgage we could get. We will have about $100,000 to put towards a house, however our income is going to be fairly low, at least until all children are at school which is going to be at least 6 years away so I can go back to work. Household income will be between $50-60 k a year. Will it be possible to get a mortgage based on this income and. $100,000 deposit and if so what sort of prices could we look at for buying? We are going to SA. thanks for any advice Quote Link to comment Share on other sites More sharing options...
Cal2 Posted November 23, 2014 Share Posted November 23, 2014 some banks on-line may have a mortgage calculator for you to get a rough estimate Cal2 Quote Link to comment Share on other sites More sharing options...
srh82 Posted November 23, 2014 Share Posted November 23, 2014 Better to rent first. You might not like Australia and want to ping pong! Most houses for rent and to buy are on http://www.realestate.com.au Quote Link to comment Share on other sites More sharing options...
Reena1991 Posted November 23, 2014 Author Share Posted November 23, 2014 some banks on-line may have a mortgage calculator for you to get a rough estimate Cal2 Thank you :-) Quote Link to comment Share on other sites More sharing options...
Reena1991 Posted November 23, 2014 Author Share Posted November 23, 2014 Better to rent first. You might not like Australia and want to ping pong! Most houses for rent and to buy are on www.realestate.com.au Thank you, we are definitely going to rent first for the first year or so to make sure we like oz and to decide on area we would like to buy in :-) Quote Link to comment Share on other sites More sharing options...
Guest Posted November 23, 2014 Share Posted November 23, 2014 I'm assuming you are going over with permanent residency? If not you wouldn't even want to think about it. Assuming you are then you should be able to access some kind of 'key start' scheme. This is the WA one http://www.keystart.com.au Without this kind of scheme you will be hit heavily with 'mortgage indemnity insurance' unless you have a 20% deposit. $100k is quite healthy though and although your salary is quite low they will lend much higher multiples than in the UK. Rents on the whole are low compared to mortgages though (the opposite to the UK) so you may want to free yourself from the burden of a mortgage and enjoy life especially for the first few years until you're sure you're going to stay. We made the mistake of thinking our own house would help us settle and three years of living hand to mouth later we moved back anyway. Quote Link to comment Share on other sites More sharing options...
tina0101 Posted November 23, 2014 Share Posted November 23, 2014 We've been told the same but deposit - if you've not got 20%, you get hit by insurance costs. Our broker has also indicated that my salary will not be considered until my probation period of 6 months is over, although our bank are willing to just wait until I'm 3 months in (hubby is already employed with no probation so we could still base it on his alone, but wouldn't get as much). Quote Link to comment Share on other sites More sharing options...
Reena1991 Posted November 23, 2014 Author Share Posted November 23, 2014 I'm assuming you are going over with permanent residency? If not you wouldn't even want to think about it. Assuming you are then you should be able to access some kind of 'key start' scheme. This is the WA one http://www.keystart.com.au Without this kind of scheme you will be hit heavily with 'mortgage indemnity insurance' unless you have a 20% deposit. $100k is quite healthy though and although your salary is quite low they will lend much higher multiples than in the UK. Rents on the whole are low compared to mortgages though (the opposite to the UK) so you may want to free yourself from the burden of a mortgage and enjoy life especially for the first few years until you're sure you're going to stay. We made the mistake of thinking our own house would help us settle and three years of living hand to mouth later we moved back anyway. Thank you, il have a look to see if there's anything similar in SA. Yes we are coming over on a permanent residency visa. It's not something we would do straight away but after a year or 2 I would like to buy somewhere if we are settled and enjoying it :smile: Quote Link to comment Share on other sites More sharing options...
Reena1991 Posted November 23, 2014 Author Share Posted November 23, 2014 We've been told the same but deposit - if you've not got 20%, you get hit by insurance costs. Our broker has also indicated that my salary will not be considered until my probation period of 6 months is over, although our bank are willing to just wait until I'm 3 months in (hubby is already employed with no probation so we could still base it on his alone, but wouldn't get as much). We won't be living near the city, as OH won't work in the city so the house prices / rent we are looking at are fairly reasonable( although won't really know until we get there). I think $100,000 would definitely cover the 20% deposit and hopefully a bit more as we'll be away from the city and looking for 3 beds rather than anything bigger. Do you have to pay for a brokers advice and help in oz? When we used one here in the uk it didn't cost us anything as I. Assuming he got some sort of commission from the banks? Quote Link to comment Share on other sites More sharing options...
tina0101 Posted November 23, 2014 Share Posted November 23, 2014 Yeah, the broker was 'free', in the sense that the company pays and not us. If if you're looking away from the city $100k should cover your deposit easy :-) Quote Link to comment Share on other sites More sharing options...
flag of convenience Posted November 23, 2014 Share Posted November 23, 2014 Hi, we will find this out for definite when we arrive and speak to a broker but just wanted to gauge a general consensus so I can prepare myself for what's possible when we (hopefully) feel settled and ready to buy a house. I just wondered if it's possible to get a mortgage based on these figures and if anyone new roughly how much of a mortgage we could get. We will have about $100,000 to put towards a house, however our income is going to be fairly low, at least until all children are at school which is going to be at least 6 years away so I can go back to work. Household income will be between $50-60 k a year. Will it be possible to get a mortgage based on this income and. $100,000 deposit and if so what sort of prices could we look at for buying? We are going to SA. thanks for any advice Shouldn't be a big issue with such a deposit. Just be comfortable with the mortgage a broker may try and saddle you with. Take into accounts costs around the purchase as well as future interest rises and possible job losses. Their job is to sell you the mortgage first and foremost. Quote Link to comment Share on other sites More sharing options...
Jessica Berry Posted November 23, 2014 Share Posted November 23, 2014 A couple of other things to take into account (in case you are not aware)... The price of the house on realestate.com.au does not include stamp duty, so you would need to pay this on top of the house price. Have a look at this calculator to give you an idea of the amount, which can be quite a bit... http://www.revenuesa.sa.gov.au/services-and-information/calculators/stamp-duty-on-conveyances-calculator-new The current mortgage rates are very low for Australia, around 5% so take this into consideration when looking at your repayments. We have had our mortgage for almost 7 years and in that time the highest our interest rate has been is 9.14%, this makes a massive difference to your repayments. If you are planning on moving further out in Adelaide, you may need to run 2 cars, as public transport will be limited depending on how far out of the city you are. Second hand cars are expensive here compared to the UK, so you may need to use some of your savings for cars, unless you have another pot of money for that. Quote Link to comment Share on other sites More sharing options...
Que Sera Sera Posted November 23, 2014 Share Posted November 23, 2014 First time buyers don't pay stamp duty do they? Quote Link to comment Share on other sites More sharing options...
Reena1991 Posted November 23, 2014 Author Share Posted November 23, 2014 Wow, thank you all so much for taking the time to reply, it's great to be able to ask these sorts of questions and for people to help out Quote Link to comment Share on other sites More sharing options...
Reena1991 Posted November 23, 2014 Author Share Posted November 23, 2014 Yeah, the broker was 'free', in the sense that the company pays and not us. If if you're looking away from the city $100k should cover your deposit easy :-) Thank you Tina Quote Link to comment Share on other sites More sharing options...
Reena1991 Posted November 23, 2014 Author Share Posted November 23, 2014 A couple of other things to take into account (in case you are not aware)... The price of the house on realestate.com.au does not include stamp duty, so you would need to pay this on top of the house price. Have a look at this calculator to give you an idea of the amount, which can be quite a bit... http://www.revenuesa.sa.gov.au/services-and-information/calculators/stamp-duty-on-conveyances-calculator-new The current mortgage rates are very low for Australia, around 5% so take this into consideration when looking at your repayments. We have had our mortgage for almost 7 years and in that time the highest our interest rate has been is 9.14%, this makes a massive difference to your repayments. If you are planning on moving further out in Adelaide, you may need to run 2 cars, as public transport will be limited depending on how far out of the city you are. Second hand cars are expensive here compared to the UK, so you may need to use some of your savings for cars, unless you have another pot of money for that. Thanks Jessica, we are looking at the southern beach suburbs such as moana and areas around there. But all, depends where jobs are. We should have about 160,000 once house is sold and we already have our money for flights and shipping, so it will hopefully be the whole 160,000 that will take. have allocated $60,000 to help set us up for rental, cars etc so after this have a nice round even number to work with, everything's estimating though! Quote Link to comment Share on other sites More sharing options...
Jessica Berry Posted November 23, 2014 Share Posted November 23, 2014 First time buyers don't pay stamp duty do they? We did and I haven't heard that it has changed in SA. Quote Link to comment Share on other sites More sharing options...
Gbye grey sky Posted November 23, 2014 Share Posted November 23, 2014 Interesting that stamp duty would be double in SA compared with QLD where we are looking. Quote Link to comment Share on other sites More sharing options...
Guest Posted November 23, 2014 Share Posted November 23, 2014 There was no stamp duty on new builds for first time buyers in WA when we built and there was a first time buyers grant - we got a 'boost' too so got $14k towards the cost from the government but that was because they were spending their way out of the GFC at the time. The rules change all the time but have a look at http://www.revenuesa.sa.gov.au/grants-and-concessions/first-home-owners It seems in SA there is still a grant for new builds. Quote Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted November 23, 2014 Share Posted November 23, 2014 Hi, we will find this out for definite when we arrive and speak to a broker but just wanted to gauge a general consensus so I can prepare myself for what's possible when we (hopefully) feel settled and ready to buy a house. I just wondered if it's possible to get a mortgage based on these figures and if anyone new roughly how much of a mortgage we could get. We will have about $100,000 to put towards a house, however our income is going to be fairly low, at least until all children are at school which is going to be at least 6 years away so I can go back to work. Household income will be between $50-60 k a year. Will it be possible to get a mortgage based on this income and. $100,000 deposit and if so what sort of prices could we look at for buying? We are going to SA. thanks for any advice Hi Can you give me a breakdown of your anticipated income ie what type and who will receive it as well as how many children you have and ages as well as any liabilities ie loans etc? I can then give you a rough idea of your borrowing power. Regards Andy Quote Link to comment Share on other sites More sharing options...
Reena1991 Posted November 24, 2014 Author Share Posted November 24, 2014 Hi Can you give me a breakdown of your anticipated income ie what type and who will receive it as well as how many children you have and ages as well as any liabilities ie loans etc? I can then give you a rough idea of your borrowing power. Regards Andy Hi Andy, thanks for replying. Income, according to firms that have got back to us will be around 50-60k. My partner will be the one earning and he is a mechanic.. We won't have any loans and we have 2 young children, when we arrive they will be 3 and 1. It will either be just one income or depending on whether it makes financial sense, I might to relief teaching if the childcare rebate makes it worth my while for approx 3 days a week.(have been told this will be about $250 per day but obviously is not guaranteed work), we are on a perm 190 visa and like I said before will have approx $100,000 to go towards a house. thank you so much :-) Quote Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted November 25, 2014 Share Posted November 25, 2014 Hi Andy, thanks for replying. Income, according to firms that have got back to us will be around 50-60k. My partner will be the one earning and he is a mechanic.. We won't have any loans and we have 2 young children, when we arrive they will be 3 and 1. It will either be just one income or depending on whether it makes financial sense, I might to relief teaching if the childcare rebate makes it worth my while for approx 3 days a week.(have been told this will be about $250 per day but obviously is not guaranteed work), we are on a perm 190 visa and like I said before will have approx $100,000 to go towards a house.thank you so much :-) Hi Reena Based on the info you have stated and assuming Hubbie earning $55k pa you should also receive Centrelink Family Tax Benefits Part A & B http://www.humanservices.gov.au/customer/services/centrelink/family-tax-benefit-part-a-part-b Therefore I have also factored in around $538 per fortnight into the equation obviously this would need to be in payment and verified. So working on the above your max borrowing power is around $290k and with your $100k to cover deposit and costs the max house purchase would be circa $370,000. Costs to purchase would be around $20k and therefore your deposit would be $80k thus the mortgage $290k. Payments on a $290k loan over 30 years (default term) based on a 4.84% rate would be around $1,528 per month. The above costs also factor in Conveyancer fees. Hope this helps. Regards Andy Quote Link to comment Share on other sites More sharing options...
adele244 Posted November 26, 2014 Share Posted November 26, 2014 Andrew would you really be entitled to tax benefits?? If you are working but not been in the country for long (I thought it was the UK only soft enough to do this) we would roughly be in the same financial position as OP and I never dreamed that you would be able to get benefits. It's nice, but I'm not sure that sits well with me!! :-/ Quote Link to comment Share on other sites More sharing options...
Peach Posted November 26, 2014 Share Posted November 26, 2014 (edited) Andrew would you really be entitled to tax benefits?? If you are working but not been in the country for long (I thought it was the UK only soft enough to do this) we would roughly be in the same financial position as OP and I never dreamed that you would be able to get benefits. It's nice, but I'm not sure that sits well with me!! :-/ Family tax benefits are not subject to the two year waiting period for new migrants with PR. If you're are entitled to them you can start claiming pretty much immediately. Family Tax B currently cuts of at a single income of $150K -- so why not? (although the Abbott government is trying to reduce it). Edited November 26, 2014 by Peach Quote Link to comment Share on other sites More sharing options...
CNC FABS Posted November 28, 2014 Share Posted November 28, 2014 Can I ask a question, might seem silly. Can you settle a mortgage early in Oz, just as you can in the UK. As we will likely be looking for a shorter term loan and less than 50% of value. Looking online, they don't seem keen on that. All want to tie you up for 30 years... Quote Link to comment Share on other sites More sharing options...
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