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  1. #21
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    We got some sort of guarantor home loan you can get through your patents.
    Hubby being an only child his father was happy to put his house up as equity for our loan so we took $50,000 equity off him up against our 100% loan .
    Not sure how it works when we sell but it hasn't affected DH father at all , I think it's based on weather we default .
    Our first home buyers went straight onto our loan which back then was $26k so FIL got $26k equity back.
    We have had this variable loan for 4 years

  2. #22
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    Quote Originally Posted by Kelly8329 View Post
    We got some sort of guarantor home loan you can get through your patents.
    Hubby being an only child his father was happy to put his house up as equity for our loan so we took $50,000 equity off him up against our 100% loan .
    Not sure how it works when we sell but it hasn't affected DH father at all , I think it's based on weather we default .
    Our first home buyers went straight onto our loan which back then was $26k so FIL got $26k equity back.
    We have had this variable loan for 4 years

    We did the same thing Kelly, through CBA. It was a family guarantee through DH's parents. They guaranteed 20% of our loan (against their house), which is set up as a separate loan facility. This way if we default they can only ever be pursued for that 20% of the loan. Then we have the other 80% of the loan in our names only and it's secured by our house. We have a variable rate loan, with a pretty good rate and everyone is happy with the arrangement

    It would have taken us 10 years to save enough of a deposit when we factored in having kids, maternity leave, increasing housing prices, etc. So we're just incredibly greatful we could do it this way!

  3. #23
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    Hi there,

    I just wanted to update we have actually bought a house recently (yay) and it ended up being something like a 98.3% loan, so they do do really high ones, we didn't need a guarantor, but we had to go with a specific bank that deals with high risk applications.

    My best advice is get yourself a mortgage broker, they are the best thing ever and they don't charge you anything, they get paid by the bank you get your loan through. There is no way we would have got a loan without her!

  4. #24
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    Quote Originally Posted by sam4frankie View Post
    We did the same thing Kelly, through CBA. It was a family guarantee through DH's parents. They guaranteed 20% of our loan (against their house), which is set up as a separate loan facility. This way if we default they can only ever be pursued for that 20% of the loan. Then we have the other 80% of the loan in our names only and it's secured by our house. We have a variable rate loan, with a pretty good rate and everyone is happy with the arrangement

    It would have taken us 10 years to save enough of a deposit when we factored in having kids, maternity leave, increasing housing prices, etc. So we're just incredibly greatful we could do it this way!
    That's probably similar to what we have but in reality I have no idea !! Haha
    I just pay the mortgage
    Worked out very well for us as like others we married and had kids young and single income so saving was near impossible whilst renting a house that costs nearly as much as a mortgage.
    We then were lucky to have my mum take my DH DS1 DS2 and pregnant me on board in her 3 bedroom house for 6 months whilst building , along with my sister, two dogs, 2 cats, a blue tongue and a cockatoo ! Oh dear I do not want to re live that

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    littlelove  (26-04-2013)

  6. #25
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    Beebs

    can I ask what bank accepts high risk? And did you need deposit?

    thanks

  7. #26
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    I have concerns about the adverts for home loans lately stating if you have $1000 and a job you can get a home just like that!
    We had to save for our deposit which was alot of money but after we got the loan there was more costs in buying the house like termite and building inspections ($600) and the rates and then we moved in to more fees for compulsory house insurance and to connect power etc and these amounts by themselves are not much but they all add up if your having to pay a mortgage too. Then there is the little things that can go wrong ,it cost us quite a bit in the first month as the retic pump ($600) blew then one of the bedrooms had to have the carpet removed and replaced due to extremely bad smell ($500) and we had to do termite treatments ($1300) as the property did have termites( very common these days). These things might not happen but you have to consider if you would be able to afford it if it did.
    Sounds too good to be true it usually is!

    Just wanted to add too that you would be paying more for your house in the end as the loan would be for 100% of the money so your paying intrest on the fees and stamp duty/taxes for the term of the loan aswell. If you did default it would be for 100% of the house value plus fees so unless the house went up in value alot you end up owing more money than your house is worth which would be a risky situation to be in.
    Last edited by lulu 2; 25-04-2013 at 15:50.

  8. #27
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    Quote Originally Posted by lulu 2 View Post
    I have concerns about the adverts for home loans lately stating if you have $1000 and a job you can get a home just like that!
    We had to save for our deposit which was alot of money but after we got the loan there was more costs in buying the house like termite and building inspections ($600) and the rates and then we moved in to more fees for compulsory house insurance and to connect power etc and these amounts by themselves are not much but they all add up if your having to pay a mortgage too. Then there is the little things that can go wrong ,it cost us quite a bit in the first month as the retic pump ($600) blew then one of the bedrooms had to have the carpet removed and replaced due to extremely bad smell ($500) and we had to do termite treatments ($1300) as the property did have termites( very common these days). These things might not happen but you have to consider if you would be able to afford it if it did.
    Sounds too good to be true it usually is!

    Just wanted to add too that you would be paying more for your house in the end as the loan would be for 100% of the money so your paying intrest on the fees and stamp duty/taxes for the term of the loan aswell. If you did default it would be for 100% of the house value plus fees so unless the house went up in value alot you end up owing more money than your house is worth which would be a risky situation to be in.
    Thats some very good advice Lulu

    Having worked in banking and finance for many years, then as a banking & finance paralegal I have seen first hand the affects that over extending yourself financially can have on people.

    Many people back before the GFC would borrow 110% of the purchase price (to cover fees etc), and would borrow to the absolute limit of what the bank would approve. Then the next time the interest rate would go up, or if they needed to make repairs to the property, they would default and end up losing their home. Because it would be a mortgagee sale, they'd often end up still owing the bank and solicitors money afterwards. It would be quite devestating for them.

    It's really important that people make informed choices about their finances and take into account the 'worst case scenario' before committing to a loan.

    We used to suggest to people that they should only buy when they had enough in savings to cover their solicitors fees, govt fees, a few thousand for home repairs and 3 months worth of mortgage payments.

    And never to borrow to your maximum capacity! The bank approved us to borrow close to a million!!! We only wanted $300K. I don't know how they ever thought we could pay off an almost $1m mortgage

  9. #28
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    I agree Sam. We were approved more then double what we knew we could even afford!!

    We had thousands saved for all the extra costs of owning a house and 7 months on its all gone!! We are starting to build it back up and by tax time it will be nice and healthy again but it really does cost a lot.

    We also pay a lot more on repayments then our rent AND we also pay insurance, rates and water on top of that (which we put into an account weekly). Financially we are twice as worse off then we were renting. So it's easy to say you can afford the mortgage but you need to be able to afford everything else too.

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  11. #29
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    Quote Originally Posted by waterlily View Post
    I agree Sam. We were approved more then double what we knew we could even afford!!

    We had thousands saved for all the extra costs of owning a house and 7 months on its all gone!! We are starting to build it back up and by tax time it will be nice and healthy again but it really does cost a lot.

    We also pay a lot more on repayments then our rent AND we also pay insurance, rates and water on top of that (which we put into an account weekly). Financially we are twice as worse off then we were renting. So it's easy to say you can afford the mortgage but you need to be able to afford everything else too.
    So true Waterlily! It's all those hidden costs that are the killer. We just purchased a new house and our stamp duty was about $18k. We didn't borrow the entire amount to cover that cost (luckily my husband is very good at saving money for our children so we dipped into that to cover it and will repay once we sell our old house). The costs add up so quickly that people don't realise how hard it actually can be. We are currently paying for two lots of mortgages, rates, water etc. Hopefully our house will sell quickly!!!

  12. #30
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    Default High risk home loans??

    BEEBS

    Who was the broker and which lender did they end up giving you?
    How much money if at all did you need in cash? and did they care if it was genuine savings?


    so desperate!


 

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