Maruska Posted January 6, 2014 Share Posted January 6, 2014 Hi all, I`m trying to round up the suburbs we are going to look at when we arrive. We are going to rent for at least a year ( probably longer) but would like to buy in the future. We have 2 small children so I am concentrating on suburbs with good schools. I would like to get experience/ideas about what amount of loan can we possibly get. I don`t want to move the kids again once they are enrolled at school so no point in renting where we can`t ever afford to buy in the future . I am a nurse, my husband is a nurse educator. Combined income, provided both of us work full time, would be 170 - 180 K per year. We might be able to put about 100 K as a down payment ( depends how much we spend on the move to Australia lol) One of us might work part time actually but I am just trying to get an estimate. Advice is appreciated. Link to comment Share on other sites More sharing options...
GiveAGirlShoes Posted January 6, 2014 Share Posted January 6, 2014 I recently went on commonwealth and NAB's websites where they do mortgage calculators if that might be any help to you?? Link to comment Share on other sites More sharing options...
Petals Posted January 6, 2014 Share Posted January 6, 2014 Realestate.com.au has a mortgage calculator Link to comment Share on other sites More sharing options...
Maruska Posted January 6, 2014 Author Share Posted January 6, 2014 Will check it, thank you both . Link to comment Share on other sites More sharing options...
NicF Posted January 6, 2014 Share Posted January 6, 2014 The banks in Australia don't lend based on multiples of income but rather on affordability based on your outgoings. When we got our mortgage we had to provide a list of outgoings and how much we could borrow was based on this - rent is not included in the calculations as this will not be being paid once you are paying off the mortgage. We were able to get agreement to borrow $375k based on my husband earning $85k at the time. Link to comment Share on other sites More sharing options...
Maruska Posted January 6, 2014 Author Share Posted January 6, 2014 The banks in Australia don't lend based on multiples of income but rather on affordability based on your outgoings. When we got our mortgage we had to provide a list of outgoings and how much we could borrow was based on this - rent is not included in the calculations as this will not be being paid once you are paying off the mortgage. We were able to get agreement to borrow $375k based on my husband earning $85k at the time. Oh OK, that`s completely different than what we had to provide in the US ( income based). Makes sense though. Thanks! Link to comment Share on other sites More sharing options...
Guest Posted January 6, 2014 Share Posted January 6, 2014 Anything more than 80% deposit gets very costly in terms of insurance - so on that basis you could buy a $500k property and borrow $400K In terms of your salary ours was similar when we arrive and WestPac were willing to lend us up to $900K. Link to comment Share on other sites More sharing options...
Maruska Posted January 6, 2014 Author Share Posted January 6, 2014 Anything more than 80% deposit gets very costly in terms of insurance - so on that basis you could buy a $500k property and borrow $400K In terms of your salary ours was similar when we arrive and WestPac were willing to lend us up to $900K. Wow we aren`t planning to borrow such a huge amount of money, want to have some of the salary left over for fun and travel:cool: . This is very reassuring though. Link to comment Share on other sites More sharing options...
Parley Posted January 6, 2014 Share Posted January 6, 2014 As a rule of thumb the banks used to go by about 3 times your salary. I think it is a good measure too for yourself to use this multiplyer. Interest rates will start to go up probably late 2014 and you need to factor in higher rates than you will get with your loan. Link to comment Share on other sites More sharing options...
Skani Posted January 6, 2014 Share Posted January 6, 2014 I thought it worth mentioning also that interest paid on a residential mortgage isn't tax deductible here - which I believe it is in the US? Link to comment Share on other sites More sharing options...
fairystar32 Posted January 6, 2014 Share Posted January 6, 2014 We borrowed with the mortgage insurance added $375k for a $390 house, we used $25k deposit and we paid approx $10k of that, approx for the mortgage insurance, I think? Link to comment Share on other sites More sharing options...
Maruska Posted January 6, 2014 Author Share Posted January 6, 2014 I thought it worth mentioning also that interest paid on a residential mortgage isn't tax deductible here - which I believe it is in the US? You get a certain amount back if you`re a homeowner, however you have to pay yearly property taxes ( high for us because we live in an area with excellent school). Not the whole thing is deductible, not sure how much of it. Link to comment Share on other sites More sharing options...
gpo1971 Posted January 6, 2014 Share Posted January 6, 2014 They're a bit stricter at the moment. When we arrived, the CBA were trying their best to throw about 850k at us, which I never would have borrowed in a million years. But recently, we were considering down-sizing and spoke to them again, and things seemed much tighter. I find that the online calculators are a decent guide but nothing else. When you actually get into the bank and they take your details, things might be very different. Link to comment Share on other sites More sharing options...
LYNDAMUMFORD Posted January 7, 2014 Share Posted January 7, 2014 We borrowed with the mortgage insurance added $375k for a $390 house, we used $25k deposit and we paid approx $10k of that, approx for the mortgage insurance, I think? Hi Fairystar, if you dont mind me asking, what are the monthly payments for a £375k mortgage? TIA Link to comment Share on other sites More sharing options...
fairystar32 Posted January 7, 2014 Share Posted January 7, 2014 all together our loan with mortgage lenders insurance is around 95 ish % of cost price we bought it for $390 We pay $1034 a fortnight You can switch too monthly, but we kept it as fortnightly so we make 2 extra payments a yr .. wee Hi Fairystar, if you dont mind me asking, what are the monthly payments for a £375k mortgage? TIA Link to comment Share on other sites More sharing options...
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