Hello my fellow ozbargainers
I'm about to make one of the biggest financial decisions of my life so I thought "you guys are smarter then the average consumer, let's see what they think"
Looking to purchase my first property in NSW around 550000 i have a 20℅ deposit ready to go!
Can anyone suggest the best loan from a respectable source?
I haven't a clue any and any all suggestions would be greatly appreciated
That's not for investor homeloan.
You are right, I'd overlooked that.
yes.. its not..but to save more interest rate he can have as OC and put into rental after 6 months or 1 year.
actually if he can afford to borrow as a owner occupied, he doesn't have to wait 6 months or 1 year to rent it out. He only needs to live in it for 6 months for Capital gain tax purpose.
He can rent it out as soon as his loan settles.
Same rate with ubank, no additional fees.
For investment?
see a broker.
Broker here.
OP,
Since this is your first home, Can you afford to borrow without factoring in the rental income? This effectively means you're borrowing as a Owner Occupied which means a lower interest rate.
Hi mate!
Not sure if I understand what you mean?
I could afford repayments without the rental income however I won't be living in it as it is going to be an investment property.
From what I understand investment home loans and owner occupier home loans are massively different
You're borrowing 440k. When the bank works out if they will lend you that much money they'll look at your capacity to repay the loan ie they look at your total income.
Say your salary is $3000 per fortnight after tax. The bank may lend you the full 440k based on your salary alone. In that case, you should get an owner occupied loan which offers a lower interest rate than investment loans. The type of loan you have has no impact on tax or whether you actually rent it or not.
The alternative situation is where the bank won't lend you the full 440k based on your salary alone. Say your salary is 2000 per fortnight. In that case you'll get an investment loan and in determining how much you can borrow the bank will factor your future expected rent. Eg $500 per week. Now they'll lend you the full 440k with an investment loan. Interest rates are higher but you can borrow more.
Also, the way the bank works out how much to lend you and your capacity to repay is different to how you'd work it out. Even if you can make actual repayments on your salary alone, the banks calcs are different for various reasons. Eg they use a higher interest rate eg 7% and also factor in HECS debts, credit card limits etc
Thank you this is wonderful information!
Definitely get one with 100% Offset
ING %3.67 ..only annual fees $199 no other fees..