Are you looking for some free advice on how to secure the right mortgage for you?
Funky Little Shack founder Mel Miller recently sat down with mortgage broker Ryan Carter for an in-depth discussion. They covered a tonne of topics, including what you need for a home loan, hot tips on interest rates, and whether banks consider JobKeeper payments.
There’s so much uncertainty in the post COVID-19 world. We believe people should be able to hear from real professionals in the industry. If you’re looking for some insider knowledge click the video below. Or scroll down for his answers to a bunch of common questions.
Can I Borrow Money Against My Property For A Secondary Home?
Absolutely. Ryan confirmed you can look to leverage off “equity held” in your property.
The financier will even consider an “As If Complete” valuation report, the value of the property once your Funky Little Shack is complete. You’re able to borrow up to 80% of this value without needing to pay Lenders Mortgage Insurance (LMI).
Generally you can lend up to 90% of the “As If Complete” valuation of the property, however there will be LMI payable above 80% of the property value.
To achieve this, the financier will consider a number of factors. They’ll look at your household budget and spending habits, your savings history, employment and valuation. In addition, they’ll examine the proposed equity in the property, your repayment history on your existing home loan, and your repayment history on other consumer facilities.
Can Any Of The COVID-19 Government Subsidies Be Counted As Income?
A number of banks will still consider JobKeeper payments as your income. However, if your original income is usually lower than the $1,500 per fortnight, the banks will likely consider your income pre-COVID. On the other hand, if your income was higher they will consider up to the $1,500 per fortnight.
Unfortunately it’s not the same case for people on JobSeeker, which is not considered as income for the purposes of securing a loan.
A lot of Ryan’s clients also look to release their Superannuation funds. However this is not widely accepted as being a further deposit for your loan application.
What Are The Most Crucial Things To Keep In Mind Before Applying?
The same principles typically apply for clients now than they did pre-Coronavirus. As a mortgage broker, Ryan suggests you cover off the following aspects.
You should make sure you have 5% genuine savings, a good credit history, no missed payments on current loans, and a solid savings history. It’s good practice to evidence savings and rent of what your proposed home loan repayments are.
Meanwhile, you should avoid things like household spending on discretionary items. For example buying too much take away food. You should also be wary of having defaults on your credit file, being over the limit on your credit cards or overdrawing on a savings account. Having debts with the Australian Taxation Office can also be problematic, as well as accessing your Superannuation.
I Want To Learn More!
If you’re looking for some more free advice on how to secure a mortgage, let us know.
Or if you’re thinking about designing your own small home or granny flat, give us a ring on (07) 5679 6171 or email email@example.com. We’ll help you cut down on household bills while still living in luxury.
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