Can we afford to buy??

[restfamily]

Been doing the sums and am worried that we can not afford to buy a house. Particularly now I have seen that interest rates in Australia are higher.

My husband has been offered a salary of $64000 and I think we'll need to get a mortgage of at least $370000 as we do not have much of a deposit.

We have a 19 month old daughter and another on the way, so I will not be able to work for a while.

Will we even get a mortgage this big or be able to repay it?

Thanks

[gail.crease]

Hi Karen

Why don't you ask Dawn who's new to this forum. She's started a mortgage broker company in Oz.

dawn.courage@mortgagechoice.com.au

Regards

Gail

[restfamily]

dropped her a mail, so I'll see what she says...

[daniel]

Hi again,

So, do I take it from this that you've found a job before leaving for Oz? If so congrats! Was it connected to Defence in any way?

Emma

[Daphne]

Originally Posted by gail.crease

Hi Karen

Why don't you ask Dawn who's new to this forum. She's started a mortgage broker company in Oz.

dawn.courage@mortgagechoice.com.au

Regards

Gail

Mortgage Choice are a MASSIVE mortgage broking company here in Australia.

I am sure Dawn could put you onto a consultant who is close to where you will be living

Daphne

PS Gail - we came from Fleet too! We were there at Xmas visiting friends.

[BullCreek_Bob]

Originally Posted by restfamily

Been doing the sums and am worried that we can not afford to buy a house. Particularly now I have seen that interest rates in Australia are higher.

My husband has been offered a salary of $64000 and I think we'll need to get a mortgage of at least $370000 as we do not have much of a deposit.

We have a 19 month old daughter and another on the way, so I will not be able to work for a while.

Will we even get a mortgage this big or be able to repay it?

Thanks

G'day

I think you are going to find it difficult to get a mortgage of $370K plus. Based upon a single salary of $64K and having two dependants the amount that the major banks would consider lending will range from $234K with St George Bank up to $322K on some products with ANZ.

However, as you have two children your Family Tax Benefit can be used (by some lenders) to increase the amount you can borrow. What is your visa status? If you are eligible for Family Tax Benefit you could get upto $3,839.90 FTB Part A and $3,467.50 FTB Part B in a full year. This "extra" $7,307.40 could increase your borrowing potential to about $300K with St George and $400K with ANZ (again only "certain" products).

What level of deposit will you have in total? The size of your deposit will influence the amount of time you will need to be in work before you can get a mortgage. The fees when buying a house can be high, but again if you've got PR there are some rebates that can offset the costs. The level of government costs vary from state to state, so where are you thinking of buying?

Cheers
Bob in Bull Creek

[restfamily]

Hi

We are off to Canberra, but I've heard that it maybe better to buy in NSW at first as their stamp duty concession is much better.

I think I got my numbers wrong and its actually a mortgage of $300000 we will need with a deposit of $120000, so hopefully that will be more achievable.

My husband has actually managed to get a job with a government department, but unfotunately not the Dept of Defence. He has das a few major disappointments with the DoD who have interviewed and then decided they could not waive citzenship or get high enough security clearance without a checkable 10 year Australian history. In one instance the techincal person recruiting even took up his UK references (revealing our master plan to his current employer) having half hour discussions only for HR to say no over security clearances. Very very annoying. Anyway we have moved on and hopefully he will enjoy his new job.

[BullCreek_Bob]

Originally Posted by restfamily

Hi
I think I got my numbers wrong and its actually a mortgage of $300000 we will need with a deposit of $120000, so hopefully that will be more achievable.

Yes, that will make things easier. Once you can provide a deposit of 20% then loans become much easier as there is no longer a requirement for Lenders Mortgage Insurance.

For a $400K property in ACT, fees would be $16,420 (inc $15K stamp duty) , in NSW fees would be $2,383. However you may well find that the "saving" will not justify the extra distance to travel to work. Canberra's on akay place to live and the lifestyle is qite different from the NSW lifestyle even though it's only a stone throw away.

Mortgage repayments on a $300K loan would be just a bit less than $2,100 per month but if you want an accurate quote, send me a PM or email and I'll need to get a few more details.

[Nelson]

If you take a look at www.barryplant.com.au there is a very useful calculator that shows the amount of Stamp Duty in each State and also gives ball-park figures on repayments via the loan calculator. Conveyancing fees are about $500-550 but you can shop around. It is always good to be pessimistic when thinking about interest rates and, whatever you are offered, build 3 increases into the affordability factor and you won't be so strapped then if it does happen. Interest rates are higher here anyway but it is easier to get a mortgage that allows fortnightly or even weekly payments and this makes a massive difference to the length of the loan and the interest you pay.

[restfamily]

Bob

You seem to have a good idea of the area. What do you think the differences in lifestyle are between ACT and NSW?

Thanks