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Question - Home Loan

Discussion in 'Money Management' started by sarahsmith, 25th Apr, 2010.

  1. sarahsmith

    sarahsmith Member

    Joined:
    25th Apr, 2010
    Posts:
    5
    Location:
    Melbourne, VIC
    Is it possible to get a $60,000 home loan on a disability support pension?

    Current situation:

    • DSP = $700 per fortnight.
    • My rent is currently double what the weekly repayments would be
    • Currently rent is :$200pw
    • Home loan repayments would be :$100pw
    • If this is possible which bank?
    • I have clear credit history - I have always pay bills on time
    • Have been renting for 18yrs - rent has increased by 80% in last year, even in the cheapest run down bedsit in the area.
    • I am Elligible for the first home buyers grant also of $7000
    • I have been saving $100 per fortnight in a first home saver account.
    Thank you:)
     
  2. AsxBroker

    AsxBroker Well-Known Member

    Joined:
    8th Sep, 2007
    Posts:
    1,448
    Location:
    Sydney, NSW
    Hi Sarah,

    Have you visited your bank lending manager to ask?
    If not, that's probably the best place to start.

    Cheers,

    Dan
     
  3. GregR

    GregR Reid Consultants

    Joined:
    13th Jul, 2009
    Posts:
    273
    Location:
    Berwick Vic
    Sarah,
    You have not provided enough information to give a definitive answer.
    There are two tests, asset value and type and income in how lenders assess what you can borrow and what they will lend against.

    A $700 per fortnight income is low and you will have some difficulty finding a lender who will lend $60k against this income. An option may be a low doc loan but you need to be comfortable with the process and income declaration and make sure it is affordable.

    The difficulty with Dan's suggestion is which bank? If you go to Bank A and they do a credit check (as they may do first), you get a hit in your credit file, if they knock it back this still stays on your file. Go to Bank B and same thing. If you go to a bank, makes sure they do not do a credit check until they will lend you the $60k on the basis of clear credit.

    Alternative is a broker who can do that search for you.
    If you want to contact me privately I can see if I can assist,
    Good luck
    Greg
     
  4. sarahsmith

    sarahsmith Member

    Joined:
    25th Apr, 2010
    Posts:
    5
    Location:
    Melbourne, VIC
    Thank you, have gotten a little scared...and decided to just keep saving for a little longer :), and maybe when I am able -I can get back to some part time work in a year or so, hopefully - I'll have another look.