We talked to a bank a few months ago. They do consider rent as savings but its only 5% you have to come up with the rest wether its 10% or 20%. We have a car loan so that was an issue. Depending on which part outside of Brisbane you want to love you can get a house for under $250 k but its in the least favorable neighborhoods. I would so love to buy but the prices in qld are ridiculous whoever said qld is cheap to live had no idea.
I'm totally relying on the hope that property will come down a bit once the baby boomers start retiring and selling off their investment properties!
There is no way anyone on here will be able to tell you how much you can borrow and therefore how much deposit you need without knowing your income etc.
You essentially need 20% deposit to avoid paying LMI, plus any legal and govt costs (can be up to $30,000 in some states).
A basic $300,000 home loan will cost about $2,000 per month in repayments, so budget about $500 a week.
Go see a bank for a preapproval! Good luck.
Other things to keep in mind are your rates, insurance and general upkeep, which can be pretty expensive depending on what needs doing - what happens if your hot water system goes, or your roof needs serious work? So you'll need to factor in those costs as well as your mortgage.
You might be able to lower your weekly repayments by extending the term of your loan, but banks will only extend the term if they think you'll be able to service the loan for that length of time - eg they probably wouldn't give someone in their late forties (not that you're that age!) a thirty year loan.
Just keep saving - you will get there!
You can do it easy OP. We bought last year for 300 000. Only had 5% deposit. So with all the fees minus the FHOG we had 291 000 to pay off.
Our repayments are now $396 a week.
ETA definitely see a mortgage broker. They obviously work for both the bank and the client however if you don't get a loan approved then they don't get their commission so they are not going to spin some stories to you. They actually want to help you. I reckon save the minimum deposit required then get your foot in the door. Good luck!
Me + DH
Last edited by cookiedough; 24-10-2012 at 21:41.
Even if you aren't ready to buy now or don't have a deposit, a broker can tell you how much you will need and whether you need to show the bank a savings pattern etc which will put you in a better position when you do apply.
I haven't read all the posts, but when you work out your budget, make sure you factor in the extra home ownership costs. I'm in brisbane as well, and I allow about $5k a year ($100 per week) for rates, water, home insurance and repairs and maintenance, which are all costs that renters avoid.
A mortgage broker has the power of knowing which bank can offer you the best interest rate, best deal for you, which bank will except 5,10,20% deposits, what the banks fees are, which bank is easier to accept you, what each bank will allow you to borrow etc.
Going to one bank will give you ONE answer. Going to a good broker will give you so many more options and avenues.
They are also free, so you can have one come and sit down with you and play with some sums etc and give you a guide of what you need to do. They get a commission from which ever bank you end up going with that they have referred you too. They also help you along the way with your contract and the finance so you aren't do blind.
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