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  • #979764
    Leisa D
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    Hi, I may have an opportunity to buy a house from a friend, but my usual bank will only lend around half of what I need, even with at least 10% deposit and extra “rainy day” money in a managed fund. Can anyone recommend where else to go? Income comprises of modest business profit (I work part time around the kids) and family tax benefit. I have a partner with income but prefer to buy in my own name as I’ll be putting up the deposit, making the repayments and paying for maintenence (eg. paint). I could probably get the house for $150K.

    #1116918
    TehCamel
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    have you spoken to a broker at all?
    do you have >1 full year financial statements for your business? (and where are you from ?)

    we have a broker based bayside, who has done a fantastic job getting us a loan with only just having 1 year financials. his name is Tim Leonard, part of Mortgage Choice network

    by rights, you need to be borrowing about 135,000 correct?
    doesn’t seem like a huge amount. Brokers usually know how to get over hurdles.. :)

    #1116919
    Leisa D
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    Hi Andy, I’m in regional Victoria. I have 5 years worth of business records, including printouts from e-recrod (ATO’s free bookkeeping program), tax assessment notices and 2011/12 full tax return.

    #1116920
    Cjay
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    You’ve got a good number of years in the business which will assist in gaining finance, as will the relatively low borrowing amount. A 10% deposit helps also.

    Institutions vary widely on their lending policies and you might not fit exactly into their ideal box of the perfect lender. In contrast, you might be the bread and butter for another lender.

    BTW I’ve sent you a PM.

    #1116921
    OneArmedGraphics
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    Ramms borrow up to 80% http://www.rams.com.au/home-loans/self-employed/

    We used a Broker (Aussie) to help finance a Construction loan against the Equity in current house. This worked very well, although only one Bank (ING Direct) was prepared to listen to this idea.

    #1116922
    Chris Brodie
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    leisadent, post: 131324 wrote:
    Hi, I may have an opportunity to buy a house from a friend, but my usual bank will only lend around half of what I need, even with at least 10% deposit and extra “rainy day” money in a managed fund. Can anyone recommend where else to go? Income comprises of modest business profit (I work part time around the kids) and family tax benefit. I have a partner with income but prefer to buy in my own name as I’ll be putting up the deposit, making the repayments and paying for maintenence (eg. paint). I could probably get the house for $150K.

    Hi Leisa,

    Your best avenue would be to find an experienced broker who knows the ropes and how to best put forward your application. Being self-employed and seeking money from banks is never easy so having someone who knows what the banks require will help immensely. Also, depending on your current home/ mortgage position, if you currently own a home, you may have more chance seeking a package from the bank for finance over both properties as a possible option.

    All the best,

    P.S. I have a couple of clients who are mortgage brokers based in South Yarra if you want/need another opinion on your position.

    #1116923
    Mortgages In Focus
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    Hi, we specialise in obtaining loans for self employed. You normally need to have been self employed for at least 2 years.

    There are lenders that will lend on 90% so if you have or can get 5% deposit that is helpful.

    Also the lenders will do lo doc, that is they don’t need to see tax returns. However we do need to see your bank statements to assess your ability to service the loan.

    If you would like to chat let me know and I may be able to assist you further.

    All the best.

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