I thought having a credit would pump my borrow power a little but I got it all wrong then 😅. When I nearly bought a house in 2021 my mortgage broker told me that without a credit history it is harder for banks to give you a decent amount of money ( because I have always paid cash and never took a credit or loan for anything) so a thought having a credit card would be a good thing to have a bit of history credit..? Awesome content mate, take care
I have conditional approval on a construction loan to build my own home, but within a month the bank did another valuation to finalise the loan and the value dropped substantially requiring me to put in another $40k cash deposit that I just don't have. This feels like a cruel bait and switch by the bank. I have had so many valuations throughout the process and each time the valuation drops. I have already worked with the builder to cut his quote drastically. I have no more wriggle room. I can afford to repay a mortgage substantially larger than the build quote, but the bank won't lend that much because of the valuation. What can I do?
I’m not sure I agree on the refinancing example. Like you said, at the start of the loan yes you would pay $3728 but that’s definitely not the case if they had the loan for 10 years. It’s more likely that they are now paying mainly the principal which means probably not much in interest. Especially if they are repaying the loan fortnightly or weekly.
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I thought having a credit would pump my borrow power a little but I got it all wrong then 😅.
When I nearly bought a house in 2021 my mortgage broker told me that without a credit history it is harder for banks to give you a decent amount of money ( because I have always paid cash and never took a credit or loan for anything) so a thought having a credit card would be a good thing to have a bit of history credit..?
Awesome content mate, take care
Mortgage brokers normally makes you land where they will get more benefits. I will say do your research and negotiate with different banks directly.
Will salary packaging affect my borrowing capacity?
Is this for refinancing , any tips to increase refinancing power if on 2 x dependNts, 120 k equity on ppor and 120 l salary
Damn , I felt that shoe comment 😂😂😂
Very true - forgot to mention that
I have conditional approval on a construction loan to build my own home, but within a month the bank did another valuation to finalise the loan and the value dropped substantially requiring me to put in another $40k cash deposit that I just don't have. This feels like a cruel bait and switch by the bank. I have had so many valuations throughout the process and each time the valuation drops. I have already worked with the builder to cut his quote drastically. I have no more wriggle room. I can afford to repay a mortgage substantially larger than the build quote, but the bank won't lend that much because of the valuation. What can I do?
Delay the build?
What is the valuation of? Property or borrowing based on new rates each month?
I’m not sure I agree on the refinancing example. Like you said, at the start of the loan yes you would pay $3728 but that’s definitely not the case if they had the loan for 10 years. It’s more likely that they are now paying mainly the principal which means probably not much in interest. Especially if they are repaying the loan fortnightly or weekly.