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Home Loans & Buying a House

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Home Loans & Buying a House

Postby milkyway » Thu Jun 07, 2007 8:42 pm

I've been delaying the whole mortgage thing for quite a while in favour of getting some business stuff off the ground ... and it seems now that we're getting close to a point where we can consider buying our own home - it won't be where we want to live & we'll have to move out into the 'burbs and that will require extra commuting, but it will be ours and the dog can have a decent sized backyard at last :)

So, knowing nothing about home loans and having just started reading up on them - anyone willing to share stories on banks, loans, and any other tips and tricks? I've just heard about an offset account, but don't know how feasible this is. Also, the fees for setting up the loan are huge, too - from $500+ - has anyone had these waived? Is that something worth negotiating with the bank?

The really scarey part is how much banks might be willing to loan us, based on those online calculators :P There's no way I'd be taking out a loan THAT big - EVER!

I think it will be rather hard to secure a loan because more than half of our income comes through our business and I don't want a low doc loan as that will increase the interest rate we're locked into :( Not sure how we're going to get around that, though.

Happy to hear your thoughts about this scary topic :shock: :!:
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Postby kate_turner2000 » Thu Jun 07, 2007 8:46 pm

im scared just thinking about it! lol. we are happy renting at the moment but i am looking forward to hearing how it all goes for you :)!!

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Postby yummymummy » Thu Jun 07, 2007 9:49 pm

I own my own home-well I own my own morgage anyway! but dont know a heck of alot about them, its freaky what banks are willing to lend you, dont get sucked in then be in over your head, homes cost more than the morgage youve got to remember upkeep costs, rates, gardens, BUT its so nice to own your own place knowing that all the money you are pumping into it is eventually going into your pocket not some landlords!!
Goodluck with tyou house hunting
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Postby BubbleButt » Thu Jun 07, 2007 10:12 pm

I'm the same.. I own my own mortgage! :lol:

Whatever you do, shop around for the best deal that suits you, not what suits the banks and if you have someone you trust completely that understands it all, then I suggest you get them to assist you.

Owning your own home is difficult and I don't mean to scare you or anything, but sometimes I wonder why I bothered. As yummymummy said, don't get sucked in and then be in over your head. I have friends that did exactly that and have had to sell up because they can't afford the payments let alone all the other bills and upkeep of their home. And with housing prices the way they are here at the moment had to sell for less than it's value otherwise the bank were going to take it from them and sell it at whatever cost they wanted and my friends wouldn't have seen a cent of it. They are now back renting and trying to get their feet back on the ground. They were lucky they didn't end up having to file for bankruptcy. They just didn't do the hard yards in finding everything out prior to signing the contracts for the house and loans.

Now that I've probably scared the life out of you (and I'm sorry if I did! :(), I love being able to say "this is my home" and I don't have to keep it exceptionally clean for a landlord and I can do what I want to it without their permission. It has it's good points and it's bad points. I'm looking for weekend work to stay on top of things at the moment (not just because of house upkeep and bills tho! ;)). I just made the decision when I bought my house a few years back that I had to give up some of the things I loved doing prior to that because I knew I wouldn't be able to afford my payments if I didn't.

Good luck with your house and loan hunting!
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Postby talia11 » Thu Jun 07, 2007 10:48 pm

As little as I know - this ishow ours works:
We are with Westpac, have a combination of $200 at fixed rate and $90 at variable (we borrowed 100%) we pay approx. $450 a week.
All our pays etc go into the home loan account and that reduces our interest as it calculates that - don't ask me how.
I must add that my hubby's parents are guarentor (sp?) for us, so we didn't need a deposit.
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Postby Butterfly_Dawn » Fri Jun 08, 2007 9:47 am

We just recently bought our house and have the mortgage to go with it. We borrowed 100% or close enough to of the amount. I am terrible with all that finance stuff, but the bloke has it all sussed. Those online calculators, from my experience, overestimate how much the bank will lend you. Even if you go in to just find out how much you could borrow to know what houses you should look at, they overquote what you can lend, not by much, but it's enough to get a bit of a rude shock when you go in to organise the loan and they say "oh but because of XYZ the actual amount we will lend you is $50,000 less"
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Postby yummymummy » Fri Jun 08, 2007 12:13 pm

morgage brokers are good too
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Postby Chelle » Fri Jun 08, 2007 12:39 pm

I just sold my house & made a bit of money out of it, renting atm just deciding wether to buy again or build a house. I was with the ANZ they were pretty good but I might suggest go to morgage choice or some kind of morgage broker they might be able to help you out with offering a wide range or home loans that will suit you.
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Postby milkyway » Fri Jun 08, 2007 1:49 pm

My sister is putting me onto the broker who helped her sort out her loan - she reckons he was pretty good and unbaised - he just asked if this was important (e.g. redraw) and if that was important (e.g. fixed or floating interest rate) etc. and then showed her the loans that suited her requirements and situation. So I reckon I'll get this guy to come over and sort out our situation.

Might have to wait though until the new financial year though, because currently, my last two tax returns aren't that great because I'd just moved back to Australia with my dependent husband and then did a bit of freelance work to have some income coming in while we set up our business and my husband didn't really start proper work until late last year when he finished his course. It was tough going at first, that's for sure, but we're in pretty good shape now :) My 06/07 tax return will be sooo much better!

I like the idea of splitting the one with one part at fixed interest and the other at variable. Some kind of offset account would be good too to get the interest repayments a bit lower.

We could borrow up to about $800K to a million by those website calculations :shock: :lol: AS IF!!! That's hilarious... and somewhat disturbing. I only need about $250~$280K and we'll have a 10% deposit, at least. Plus the first home owners grants which comes to about $12K here in Vic which will cover the stamp duty and maybe some of the conveyencing fees, butI think but i need to double check that because it might be changing in the new financial year???

We are currently paying about $14K in rent per annum. Coming up with another $10K to bring it up to the minimum repyaments won't be difficult.

I love the area I currently live in, but I don't love the house (it has been half renovated so the kitchen and bathroom are fine, but the floors and carpets are a total mess and detract from the house as a whole so it always looks dirty :evil:). The house up the street was auctioned last weekend and went for $680K. It was renovated and had an extension, but I still considered a bit too small for my purposes... and no backyard. So it looks like a move to the 'burbs is on the cards.

Did anyone have to pay upfront fees or is that something you can get the banks to waive?
Just keep moving! And don't be lazy...
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Postby A_Corner_Of_The_Earth » Sat Jun 09, 2007 4:28 pm

I just sold my home. We made a profit. Sold for $830, 000.000 and it wasn't on the market for very long. Thank god, I needed the place sold and I want to get away from my ex :twisted:

I got my new apartment for $500,000.00. I was fortunate enough to get a loan through work at a fixed rate of 5% for 5 years as I don't have to borrow at 100% I'm lucky in that respect. My fortnightly repayments with principle and interest are $1956.44. I sat down and did a budget off all my weekly, fortnightly, monthly and yearly expenditures to figure out if this is feasible, which it is. *Takes a sigh of relief*

You can negotiate to waiver fees. Everything is a possibility. Remember they want your business just as much as you do theirs. Good luck with it all. It definitely pays to shop around and take your time.

How exciting your very first home. Good lucky to you and hubby sandra. Buying a home is a very good solid investment.
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