I applied for a 80% home loan with ANZ last week. It was rejected and ended up with 60%. If I borrow 20% from my parents. Is it possible to pay them back the 20% in two months by refinancing? Thx
Mortgage and Refinance
Comments
And only if the bank thinks you can afford the extra 20%. Will your financial situation change in 2 months?
yes if your finance circumstances have changed significantly in the next two months.
Possible, yes, but things to consider:
- Early repayment charges if your loan is fixed;
- Whether the value of the ppty might go up or down in that period;
- If your financial situation will improve in that period;
Ultimately, definitely don't bank on being able to repay your parents in 2 months' time.
Why was your initial loan request declined?
Thank you mates.
There is a black mark on my wife's credit report. I have to get it done in 10 days.
My finance circumstances will not be changed in next year.Credit history should not stop you getting an 80% loan - there are several lenders that will do this (assuming income and security is acceptable)
Are you dealing directly with the bank or do you have a mortgage broker? If the first, go find yourself a broker - they know some tips and tricks to up your borrowing ability, everything from cancelling credit cards (you can apply for them again after you've purchased the property), to cancelling other credit facilities (business lines of credit, redraw facilities on other loans, etc), or things like having your parents just deposit some money into your account so that your financial situation looks better, and you can transfer the money back after the loan is approved and property purchase completed.
Note: I'm NOT a loan broker - talk to one.
Go to an insurance broker.
The realistic answer is that it's 99.5% likely that you won't be able to refinance in 2 months to get another 20%. Your circumstances will be the same and your property would not have increased in value.
You also wouldn't want to refinance so soon because of the costs involved, even if you could do it. E.g I think you'll have to pay lenders mortgage insurance each time?
Try another bank or if your parents are really that concerned they can register a caveat on your property or even a second mortgage. Failing that you need to make repaying your parents a priority over a longer time period. You can even pay them interest if that makes you feel better.
..or just use their property as security for an additional borrowing of 20% instead of taking their cash.You should also consider why the bank is only giving you 60%. Is it only because of credit reports? It might be because of a valuation issue which u should be really concerned about
I have a mate who is in a situation where the bank wont lend him as much as he needs. He is selling some personal assets to make up some deposit and also recently sat down with another bank who may lend him the extra he needs.
It may pay in your scenario to shop around at another bank.
Not without incurring charges if your loan is fixed. You will need a full variable loan to refinance