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๐๐๐ง ๐ ๐๐ฉ๐ฉ๐จ๐ซ๐ญ๐ข๐จ๐ง/๐ฌ๐ฉ๐ฅ๐ข๐ญ ๐ฆ๐ฒ ๐๐๐๐ญ ๐จ๐ซ ๐ฅ๐ข๐ฏ๐ข๐ง๐ ๐๐ฑ๐ฉ๐๐ง๐ฌ๐๐ฌ ๐ฐ๐ข๐ญ๐ก ๐ฆ๐ฒ ๐ฌ๐ฉ๐จ๐ฎ๐ฌ๐ ๐ญ๐จ ๐ก๐๐ฅ๐ฉ ๐ฆ๐ ๐๐จ๐ซ๐ซ๐จ๐ฐ ๐ฆ๐จ๐ซ๐?
๐๐จ ๐ฆ๐ฒ ๐ฉ๐๐ญ๐ฌ ๐๐จ๐ฌ๐ญ ๐ฆ๐ ๐ฆ๐ฒ ๐๐จ๐ซ๐ซ๐จ๐ฐ๐ข๐ง๐ ๐๐๐ฉ๐๐๐ข๐ญ๐ฒ?
๐๐๐ ๐๐ซ๐๐๐ข๐ญ?
Does HECS affect my borrowing capacity?
๐๐ก๐๐ฌ๐ ๐๐ซ๐ ๐ฌ๐จ๐ฆ๐ ๐จ๐ ๐จ๐ฎ๐ซ ๐ฆ๐จ๐ฌ๐ญ ๐ฉ๐จ๐ฉ๐ฎ๐ฅ๐๐ซ ๐ฅ๐๐ง๐๐ข๐ง๐ ๐ช๐ฎ๐๐ฌ๐ญ๐ข๐จ๐ง๐ฌ ๐ญ๐ก๐ข๐ฌ ๐ฐ๐๐๐ค.
โ ๐๐๐๐ (๐ก๐ข๐ ๐ก๐๐ซ ๐๐๐ฎ๐๐๐ญ๐ข๐จ๐ง ๐๐จ๐ง๐ญ๐ซ๐ข๐๐ฎ๐ญ๐ข๐จ๐ง ๐ฌ๐๐ก๐๐ฆ๐).
YES. Your HECS debt will have a negative impact your borrowing capacity. HECS repayments are calculated based on your gross annual income before tax not on the remaining/outstanding balance of your HECS. Your HECS balance can be a little as $500 or as higher as $50,000, the monthly repayments will still be the same.
โ ๐๐ฉ๐ฉ๐จ๐ซ๐ญ๐ข๐จ๐ง๐ข๐ง๐ ๐ ๐ฃ๐จ๐ข๐ง๐ญ ๐๐๐๐ญ ๐จ๐ซ ๐จ๐ง๐ ๐จ๐ข๐ง๐ ๐๐จ๐ฆ๐ฆ๐ข๐ญ๐ฆ๐๐ง๐ญ๐ฌ.
YES. On a case by case and bank by bank basis. If youโre in a spousal relationship and if both you and your spouse can demonstrate to the bank that your spouse, who is not a party to the proposed loan, can service their own portion of the existing liabilities. Household living expenses including childcare and private school fees etc. cannot be apportioned.
โ ๐๐จ๐ง๐ฎ๐ฌ ๐๐ง๐ ๐ง๐จ๐ง-๐๐๐ฌ๐ ๐ข๐ง๐๐จ๐ฆ๐ (๐๐ฅ๐ฅ๐จ๐ฐ๐๐ง๐๐๐ฌ, ๐จ๐ฏ๐๐ซ๐ญ๐ข๐ฆ๐, ๐ฌ๐ก๐ข๐๐ญ ๐๐ฅ๐ฅ๐จ๐ฐ๐๐ง๐๐, ๐ ๐๐ ๐, ๐๐๐ ๐).
80% of your bonus income can be included as part of the borrowing capacity calculations but only if you can demonstrate consistency of this income for two previous years.
Meaning if received $1,000 in bonus payment in FY23. Then $800 can be used for servicing.
Essential allowances such as working away from home, fly-in fly-out, uniform allowance, car allowance, shoe allowance, shift allowance can all be considered of up to 100% on a bank-by-bank basis.
โ ๐๐ข๐ฏ๐ข๐ง๐ ๐๐ญ ๐ก๐จ๐ฆ๐ ๐ฐ๐ข๐ญ๐ก ๐ฉ๐๐ซ๐๐ง๐ญ๐ฌ ๐ซ๐๐ง๐ญ-๐๐ซ๐๐.
If youโre living at home with your parents rent-free, then the bank will automatically factor in $650 per month as your rental expense. This known as โnotional rentโ.
โ ๐๐๐ ๐๐ซ๐๐๐ข๐ญ (๐๐ซ๐๐๐ข๐ญ ๐ข๐ฆ๐ฉ๐๐ข๐ซ๐ฆ๐๐ง๐ญ).
Can be considered on a case by case and lender by lender basis. Your loan to value ratio would need to be 80% or less.
But how bad is bad? How does a bank/lender determine an applicantโs credit worthiness? I will cover this topic on my next post.
โ ๐๐จ๐๐ฌ ๐๐ ๐ ๐ฉ๐ฅ๐๐ฒ ๐ ๐๐ข๐ ๐ฉ๐๐ซ๐ญ ๐ข๐ง ๐ฅ๐๐ง๐๐ข๐ง๐ ?
Yes and No. Banks and non-bank lenders do not have age discrimination or restrictions, it is all about sound exit strategy.
A sound exit strategy pretty much interpreted as what can the borrower do to repay the loan back in full without needing to sell their principal place of residence or being in financial hardship.
Even though most Banks say that they donโt have age restrictions, but they tend to favour younger individual borrowers based on the assumption that younger borrowers have a longer working life.
For example: a 60-year-old borrower would potentially stop working within 5 years from the date of obtaining the loan vs a borrower in their 30s.
โ ๐ ๐ฒ๐๐๐ซ ๐ฌ๐๐ฅ๐-๐๐ฆ๐ฉ๐ฅ๐จ๐ฒ๐๐ ๐ข๐ง๐๐จ๐ฆ๐ ๐ฏ๐๐ซ๐ข๐๐ข๐๐๐ญ๐ข๐จ๐ง.
On a case by case and bank by bank basis. Major banks can consider one year income documents to verify a self-employed applicantโs income.
Traditionally 2 years financials are required by all lenders. Although there still a lot of the banks out there that still requesting for 2 years income documents.
โ ๐๐จ ๐ฆ๐ฒ ๐ฉ๐๐ญ๐ฌ ๐๐จ๐ฌ๐ญ ๐ฆ๐ ๐ฆ๐ฒ ๐๐จ๐ซ๐ซ๐จ๐ฐ๐ข๐ง๐ ๐๐๐ฉ๐๐๐ข๐ญ๐ฒ?
YES, absolutely. Your pet expenses will form part of your overall household living expenses.
Your children under the age of 18 and spouse who are financially dependent on your financial support will also add a negative impact to your borrowing capacity.
๐๐ฌ always, ๐ข๐ ๐ฒ๐จ๐ฎ ๐ก๐๐ฏ๐ ๐๐ง๐ฒ ๐จ๐ญ๐ก๐๐ซ ๐ช๐ฎ๐๐ฌ๐ญ๐ข๐จ๐ง๐ฌ feel free to reach out to one of our team members at CCS Lending.
The First Home Loan Deposit Scheme (FHLDS) is an Australian Government initiative to help you buy or build your first home sooner. We're proud to continue supporting this initiative.
If youโre eligible youโll get a limited guarantee from the Australian Government to buy or build your first home with a low deposit of 5%, without paying Lenders Mortgage...
Ask yourself one simple question, โHow quickly do I want to get into my first home?โ This will not only determine how much you need to save but also how long it will take you.
How Lenders Mortgage Insurance can help you get into your dream home faster.
The Lender will normally require LMI if you do not have the required home loan deposit (typically 20% of the property value) and the cost is usually passed...
Outside the deposit, thisโll be your biggest upfront cost. Stamp duty varies greatly from state to territory to state and the rules (and exemptions) can seem complicated.
Check out the government websites of your state or territory. But be warned: the various schemes change almost yearly so youโll need to check and double check.
Terms and conditions, credit criteria, fees and charges apply.
$2k to $4k Refinance Cashback available for new refinance applications. Offer may be varied or withdrawn at any time.
Limit of one cashback payment regardless of the number of applications, applicants, properties, or loans involved per 12-month period. For joint applications, only one cashback payment will be...
This offer is only available through St George and 86 400 Bank.
For eligible first home buyers with a Loan to Value Ratio (LVR7) up to 85%, the LMI will be reduced to only $1 with St George or NIL with 86 400.
This offer is not an LMI waiver and your clients will be charged $1.00 for LMI which will be reflected in their Loan Offer...
Australian Credit Licence Number 458791
ABN: 17 166 219 521