Mortgage/Financial Question

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Moe

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Just a question for anyone that works in the finance industry (bank, lender, solicitor etc)

I've been looking to buy my own place for a while now and almost have a big enough deposit saved.

I've been doing some research and also went to the bank and they confirmed that I need a minimum 20% deposit to avoid the lenders mortgage insurance (LMI)..Thank you GFC.

I currently only have 15% of the total amount that I want to borrow.


One of the blokes I work with said that there is a possible way around paying the LMI.

He said just get a personal loan of the amount you need, that money will just show up in your savings, then you will have the required 20%. After that go to a bank/lender that will amalgamate/absorb the peronal loan into the home loan. As long as you are able to furnish the loan amount(s) you should be fine.


Has any one done this before? or have any opinions on this?


I'm seriously considering doing it cause the longer I wait the harder it going to become. Market seems to be going skyward atm.
 

Mr Beast

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Firstly how much do you earn (gross) and how much you have in your bank $$ figure

(something Moe would say)
 

Doga

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Getting a personal loan is not a great idea.

you will be paying interest at a much higher rate.

Also, the personal loan may appear in your bank account but you will have to declare that debt when you are applying for the mortgage.

You will have to show in detail every account hat you have.
 

Moe

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Getting a personal loan is not a great idea.

you will be paying interest at a much higher rate.
I thought so too, but I don't plan of having the loan for longer than 3 months if i am able to get it absorbed into the home loan.

Also, the personal loan may appear in your bank account but you will have to declare that debt when you are applying for the mortgage.

You will have to show in detail every account hat you have.
That's fine about the debt, all that will do is reduce my borrowing capacity. I had a sit down with a loan specialist at my bank they estimated that I can borrow $100k+ than I actually need.
 

Doga

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I thought so too, but I don't plan of having the loan for longer than 3 months if i am able to get it absorbed into the home loan.



That's fine about the debt, all that will do is reduce my borrowing capacity. I had a sit down with a loan specialist at my bank they estimated that I can borrow $100k+ than I actually need.
Don't go to a bank. Go to a mortgage broker. They'll look at all the banks and will get the best for you.
 

Moe

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Haha I only just found out about mortgage brokers. The guy who gave me the advice said thats how he found out about it. I might see the same guy that he did.
 

Doga

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Good luck. My one that i went to for my unit & house is pretty good. Lemme know if you need.
 

Bry

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Definitely go with a mortgage broker. They take care of all the shit you have to deal with. We used Australian Mortgage Brokers http://www.amortgage.com.au/
The guy we had bent over backwards to do everything for us.
 

Abdul..

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You can only consolidate debt if the total will be within the 80% threshold of the new valuation.

On mortgage brokers pffft. Never pay a mortgage broker. They are paid by the banks. And go to a reputable one otherwise they will stick with the bank that pays them the most.
 

Blue&White

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Hi Moe, I am a mortgage broker. This chicken/burger shop is my wife's business that I set up for her.

My company is called Checkpoint Finance Group. You find out about us at www.cpfinance.com.au.

I just sent you a PM.
 

Mr Beast

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Hi Moe, I am a mortgage broker. This chicken/burger shop is my wife's business that I set up for her.

My company is called Checkpoint Finance Group. You find out about us at www.cpfinance.com.au.

I just sent you a PM.
Is there anything you can't provide? awesome mate, the Kennel is full of surprises. I will definitely contact you when I decide to invest in a home to see what sort of offers you maybe able to assist with. I plan to buy one this year but some unexpected expenses came up which is really holding me back.
 

Özil

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I had a mortgage knocked back in 2011 because of the amount of enquiries I made to different lenders which affected my credit score or whatever you call it which surprised me. I only have 1 credit card and I thought that wouldn't really impact me getting the mortgage.

Im able to afford the weekly repayments and had enough capital (which was around 15%).

Is there a way to improve my credit score?
 

UmoGus

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Im a Uni student, i cant really help with anything because really, i cant even help myself.
 

Raysie

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Get to that minimum 20% deposit first.

It's just more money down the drain if you put down a deposit with any less.
 

Rodzilla

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im a mortgage broker too ffs

the mortgage sent me broke back in 06
 

Blue&White

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I had a mortgage knocked back in 2011 because of the amount of enquiries I made to different lenders which affected my credit score or whatever you call it which surprised me. I only have 1 credit card and I thought that wouldn't really impact me getting the mortgage.

Im able to afford the weekly repayments and had enough capital (which was around 15%).

Is there a way to improve my credit score?
Not all banks and lenders use a 'credit scoring' model. Credit scoring is where you are allocated points for every criteria in the model. This includes, but is not limited to stability of employment, level of credit report enquiry, amount of your deposit etc. A benchmark score/points needs to be achieved. If you dont meet the hurdle, then the loan is declined. And yes, something as silly as exceeding a certain number of credit enquiries could result in a decline based on credit scoring.

Post GFC many lenders become obsessesed with this model and it made lending problematic. Most lenders no longer credit score and assess deals on a case by case basis, based on the strengths and risk mitigants of the application.

Hope this helps... :grinning:
 

Mr Beast

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I had a mortgage knocked back in 2011 because of the amount of enquiries I made to different lenders which affected my credit score or whatever you call it which surprised me. I only have 1 credit card and I thought that wouldn't really impact me getting the mortgage.

Im able to afford the weekly repayments and had enough capital (which was around 15%).

Is there a way to improve my credit score?
I don't think the credit score really has that much of an impact to a home loan because they use that as a collateral does it not? Do you have any defaults or court judgments that would impact your credit file? best thing to do and find out is request a full credit report at www.veda.com.au. Its free if you request via E-mail or Fax which generally takes 10 days. Or you can pay $49 for an instant one.

However I do know credit agencies/brokers etc can obtain this for free on your behalf with no footprints to your credit file that would affect your RR (Relative Risk - basically is a score to profile the likelihood of your defaulting on a lending or contract product) they would never tell you this number as well. I use to be able to see this through work via the D&B report, I haven't used this in a while though.

I work in the financial services industry and to improve your score you just have to stay low for a while or clear any defaults etc, really depends on your circumstances and whats on your file.
 

Blue&White

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Is there anything you can't provide? awesome mate, the Kennel is full of surprises. I will definitely contact you when I decide to invest in a home to see what sort of offers you maybe able to assist with. I plan to buy one this year but some unexpected expenses came up which is really holding me back.
Lol
 

Özil

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I dont have any defaults or anything like that.

I haven't made any credit enquiries for nearly 2 years since I got knocked back.

Not all banks and lenders use a 'credit scoring' model. Credit scoring is where you are allocated points for every criteria in the model. This includes, but is not limited to stability of employment, level of credit report enquiry, amount of your deposit etc. A benchmark score/points needs to be achieved. If you dont meet the hurdle, then the loan is declined. And yes, something as silly as exceeding a certain number of credit enquiries could result in a decline based on credit scoring.

Post GFC many lenders become obsessesed with this model and it made lending problematic. Most lenders no longer credit score and assess deals on a case by case basis, based on the strengths and risk mitigants of the application.

Hope this helps... :grinning:
It does help thanks :grinning:
 
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