confused

[k&Hmum]

ok my question has a few parts so please bare with me.

last year hubby and i tried to get a home loan to buy a very reasonably priced home but were knocked back due to lenders not wanting to lend money for a property in that area. (small country town, houses rarely come up for sale because people love it there and we want to be there) how can we overcome that as another house has now come up?

secondly we have since had another baby so we have 3 children but i am back at work. i have looked on a lot of calculators and they show our borrowability at all different levels from very low to an amountexceeding what we would need why is this?

we no longer have our deposit either as it was used up while i was off work due to new baby.

also we have quite a large personal loan which also affects our borrowing power, so is there any way we could combine the personal loan and home loan straight away? paying the repayments on a personal loan and a small home loan separately is more expensive then making repayments on a big home loan if you know what i mean. so why cant we have the small home loan (im talking $210,000) and the personal loan rolled into one because repayments would then be a breeze.


sorry i hope this hasnt been to long and confusing for you because it sure confuses me.

[andie_pandie]

Hi there, sorry to not get back to you straight away, as I am on holiday and only check in ocassionally.

With regards to location, there are only a few banks that look at remote locations and low deposits, if you want to PM me the location I can check to see which banks would do it for you.

Servicing calculators, yes they definately do differ. The reasons for this is the banks always have a factor amount over and above the interest rates (every factor is different), hence if the interest rates are say 8%, they may work on 9.5% (not true figures) so that they have confidence that if the interest rates went higher then you would be able to service the debt. I have 30 banks under me, and they can differ by sometime $100K difference. Generally the major banks are very similiar.

There are the 100% home loans however the location may be a problem so as mentioned above I can check this by having a location. Probably the highest you may get to is 95% hence you may have to save a little, however there are some other options as well.

With regards to Personal Loan on a Home Loan straight away, unfortunately this won't be possible unless you have equity in the property. Some banks require including the debt to have between 10-15% equity including the debt prior to doing it.

I hope that I have answered the questions for you.

Cheers Andrea