crackerjack Posted February 4, 2013 Share Posted February 4, 2013 Hi, Can someone help me figure this out. If someone is earning approx $87,000 in oz (only one wage), how can they afford to put an offer on a house oieo £710,000? To break it down, what income multiples are usual in oz (brisbane) for mortgages? What deposit do migrants on a 457 visa usually have to put down? Do mortgage providers include benefits and child maintenance, when they are calculating how much someone can afford? Thanks in advance. Link to comment Share on other sites More sharing options...
Eera Posted February 5, 2013 Share Posted February 5, 2013 By having a massive deposit? Mortgage providers take all sources of income into account, but regard children and other dependents as a liability and so allow less for them, also things like credit cards are regarded as having a liability equivilent to the maximum amount of the card regardless of whether it's cleared or not. There are simple online calculators to see roughly how much a bank will loan - check out the website of any bank and look for "how much can I borrow?" and they'll be there. The amount you've mentioned would attract an interest only payment of about $750 p/w, bearing in mind it's very low interest at the moment and you'd really need to budget for allowing around 8% in the long term, which would be $1000 p/w or so with capital on top of that. Link to comment Share on other sites More sharing options...
robfromdublin Posted February 5, 2013 Share Posted February 5, 2013 In short, they can afford to only if they have a massive deposit. In oz, a deposit less than 20% is likely to attract LMI (lender's mortgage insurance). This is insurance for the bank in case the house owner defaults on the loan. However the bank doesn't pay the premium, the house owner does! Therefore most people like to get a 20% deposit to avoid this, or as close to 20% as possible to minimise it. This is the same for migrants or citizens. A mortgage provider will take into account all income and expenditure when assessing an application. They will also take into account access to credit. For example if you have a credit card with a $10000 limit, the mortgage provider will assume that you have used up all that limit when assessing your mortgage application. Therefore it is often a good idea to lower the limit you have on your credit card or get rid of it altogether. Re income multiples, everyone is different and you can't really extrapolate from statistics like median house price divided by median income. As an example, myself and my wife have salaries around the $80k mark. For the purposes of buying a house, we are only going to count mine (as she will be off having babies hopefully in the coming years!). The maximum we think we can comfortably borrow is $430k. However, based on our joint income we could probably borrow up to $900k! That would be madness although no doubt some people do borrow as much as the banks will let them. Link to comment Share on other sites More sharing options...
Guest Bazinga Posted February 5, 2013 Share Posted February 5, 2013 Why are you torturing yourself with all this? Link to comment Share on other sites More sharing options...
northshorepom Posted February 5, 2013 Share Posted February 5, 2013 Why are you torturing yourself with all this? Yeah, let it go mate I think you've been done a great wrong but it's not going to change. Don't give your ex more of an excuse to further ruin your relationship with your kids Link to comment Share on other sites More sharing options...
crackerjack Posted February 5, 2013 Author Share Posted February 5, 2013 Bazinga and Northshorepom, I am probably coming over as a right loon. But just to reassure you, I am just about sitting on the right side of sanity (I think). Its very similar to when people find out that a case of medical neglect led to the loss or injury of a loved one. You can't bring them back, but you need to understand every nitty gritty detail. You need to know if it was avoidable. Maybe it is self torture, or maybe its grief, taking you down dead end, that for some reason you cannot explain to anyone else, you simply need to go down. For example, my ex said they needed to emigrate because they had soft debts of £100,000 from school fees. If they had paid that debt back, my ex would not have had the massive deposit that people keep referring to. Now never would I bring this up with my ex. I am more scared of her now than I ever was. She has complete power over me. The court order I secured back in 2004 to secure contact with my children is worthless. I just need to know for me. One day you will never see me on this forum again. When that day comes you will know I found some peace. Thanks again guys. Link to comment Share on other sites More sharing options...
Guest Guest16631 Posted February 5, 2013 Share Posted February 5, 2013 .................I cannot help with the finance question crackerjack..................but would like to say I understand why you need to know.................guess the question will always be could I have done more...........would it of changed anything...........it must be so hard to come to terms with so I guess by finding out it was inevitable ,it will help you accept what has happened..............and hopefully then you can just concentrate on maintaining your relationship with your children...............I wish you well..............and hope you find your answers and peace soon..................tink x Link to comment Share on other sites More sharing options...
fifi69 Posted February 5, 2013 Share Posted February 5, 2013 Like Tink, i understand why you want answers to your questions. Followed your posts from the start and yes by the sounds of it your ex has been very devious somewhere down line. We are also here on 457 visas and although not looked into it in great depth, by the sounds of it as well as a huge deposit there is lots of stipulations on buying while on that visa, unless its different state to state, i believe you are on a higher interest rate too. Its a risky thing to do, if you get the bullet from the sponsored job and have 28 days to leave, how do you sell in that timescale? Something fishy going on!! Off topic, i really feel for your situation. Cant imagine how hard it must be to have your gorgeous kids growing up on the other side of the world and not being able to see them often. Skypes great but it doesnt let you cuddle. It would certainly eat me up Must have broke your heart having them return to Oz after xmas. I hope you find peace and that one day when they are old enough to choose where to live you will get to be with them more often. Take care Link to comment Share on other sites More sharing options...
crackerjack Posted February 5, 2013 Author Share Posted February 5, 2013 Thank you all of you, for your understanding and your concern. You have all helped me in different ways. Link to comment Share on other sites More sharing options...
ali Posted February 5, 2013 Share Posted February 5, 2013 I too can understand your need to know the finer detail ... but don't let it consume you. Link to comment Share on other sites More sharing options...
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