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First home loan & wife off work

Discussion in 'Finance & Banking' started by rafael84, 31st May, 2010.

  1. rafael84

    rafael84 Member

    Joined:
    28th Oct, 2009
    Posts:
    13
    Location:
    Brisbane, QLD
    Hi all

    I'm 25, married and my wife and I are expecting our first child in January 2011.

    We're really keen to get our first place, and are willing to start off small and simple, say an old 2 bedroom house around 10-12km's from the Brisbane CBD. We are both on similar incomes of approx. $56,000 before tax, each.

    The catch is this, my wife wants to take 12 months off work (she is a teacher (not permanent but on a contract)) and I'd like to know if a bank would lend us enough money to cover the cost of our proposed purchase, we will only have a 5-10% deposit (not including the FHOG which we assume will just be consumed by est. costs etc.) on the basis of her being employed presently, and then giving us some flexibility during that 12 month period that my wife is off work and hence whilst on one income. And then repayments returning to normal (or even increased to catch up if required) once shew returns to work the following year.

    I am pretty much one step from speaking with a bank or mortgage broker on this issue, but just thought I would get some advice from others before heading in.

    I know there are lots of products out there that offer some flexibility for these types of situations but just wanting a bit more information if anyone can help?

    Otherwise I guess we just need to wait until she returns to work and then go for the loan then.
     
  2. Billv

    Billv Getting there

    Joined:
    15th Jul, 2007
    Posts:
    1,796
    Location:
    Sydney, NSW
    It doesn't sound like you'll manage on your own.

    I suggest you don't tell the bank about your wife's plans and if she wants a house she has to stay at work or at least work part time to help out with the bills.

    How big is the mortgage you are getting?
     
  3. rafael84

    rafael84 Member

    Joined:
    28th Oct, 2009
    Posts:
    13
    Location:
    Brisbane, QLD
    We're looking to borrow $300,000-$400,000 but will only have a deposit of around $30,000 (incl. the FHOG).

    I'm thinking an interest only loan for the first 12 months may be an option, then reverting back to a traditional principal and interest loan, but still need to weigh this up.
     
  4. lancer24

    lancer24 Active Member

    Joined:
    30th Jun, 2008
    Posts:
    25
    Location:
    Sydney, NSW
    hi rafael,

    we are in a similar situation as yours wrt age and income wise and future plans.

    there is a westpac rocket repay loan product which offers time off from repayments ( for holidays or pregnancey) if you are ahead of schedule in your payments. std variable is 7.51 but they offer discount of 0.5% upwards depending upon your loan size plus some annual fee ( abt $400 )