A Mortgage Question

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  dizzle on 20/08/2021 - 19:43

  I can't answer all the questions, but:

  Would the rent that we receive from the 2 properties count towards how much we can borrow (repayments)?

  Yes, but the rent you pay for the one you live in will also count as an expense. so it depends which one is higher as to whether that's a good thing.

  While you may not be wanting to, moving into the house you are purchasing for a year could lower your stamp duty, and you also tend to get better mortgage rates for occupying that house.

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  Brucegonemad on 20/08/2021 - 22:33

  I have previously worked in the banking industry and now work alongside mortgage brokers and I also have my own business so here's my 2 cents for what it's worth:

  Would the rent that we receive from the 2 properties count towards how much we can borrow (repayments)?

  Yes, definitely. Rental payments are income.

  What would happen if we decide in maybye 6 months time to move into the second property (that we would buy)?

  Nothing really would happen.

  Would the lender look at the mortgage again? Would we need to notify the lender (change of circumstances)?

  Lender won't look unless you tell them to look. No need to tell them unless you think for whatever reason you'll find it difficult to keep up with your repayments. As long as you're paying the repayments on time, lenders don't really care.

  Problem is that the lenders would not include my income when it comes to our ability to pay the mortgage.

  That's odd. Have you only been self employed for a short time? (Less than a year). In that case it would be difficult however you still can find lenders but would need to pay a higher rate as they would deem you higher risk than someone self employed for multiple years with year on year growth.

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  vegemite2008 on 20/08/2021 - 23:22

  Self employed for 25 years but one of the major banks said due to receiving jobkeeper I am considered a risk.

  • 

    Brucegonemad on 21/08/2021 - 10:51

    Create a separate account with a bank that you will not lend with and have your jobkeeper payments transferred into that. Advising any bank that you're considering lending with that you're on jobkeeper will make it much tougher for you to get lending, best case is you'll be paying a higher interest rate which isn't great.

    As long as you're confident of keeping up with the repayments you'll be fine.

    Get your accountant to help put you in the best position to maximise your borrowing capacity.

    Again though you must be very confident of you're ability to repay…I wouldn't recommend this strategy to most people as most have no clue about their finances and financial position and then blame the banks when they can't repay even though they're the ones who wanted the lending in the first place…not saying that's you…being self employed for 25 years shows that you're more capable than most!

    • 

      vegemite2008 on 21/08/2021 - 21:13

      Don't get any more jobkeeper (in WA).

      Might use a mortgage broker this time.

      The best rate so far is with tictoc (crazy name) but backed by Bendigo and Adelaide Bank.