If I - theoretically - had more than 20% deposit, would that help my cause?

quickymart:

 

If I - theoretically - had more than 20% deposit, would that help my cause?

 

it depends , if you can demonstrate you saved it, it’s a plus... if it was funds were gifted to you, banks can choose to not include it in you past savings 

quickymart:

If I - theoretically - had more than 20% deposit, would that help my cause?

Hmmm. Might have a talk to my bank and see what they say. It's a completely crap situation, but all I can do is try.

I guess if I have a larger deposit, I don't need to ask for as much for a mortgage, and can service it more easily. That was my line of thinking anyway.

eg, house is $600,000, deposit = $250,000 (for example) - I've got just over 40% for a deposit, and they would be loaning me $350,000 over 30 years etc. Could that possibly work?

Bear in mind you will be buying at market peak. Well a market peak. Your interest will be super low. When interest goes to 5% its still dirt cheap, but your mortgage payments will near enough double  after whatever fixed period you can get.

concordnz: In stable 5yr+ job with a letter from employer stating your job is not at risk with Covid.

Is it common practice for lenders to ask for this? I would think that some employers would be worried about unintended consequences - e.g. potential employment disputes if they declare that someone's job is not at risk and later find themselves having to make them redundant anyway. 

alasta:

concordnz: In stable 5yr+ job with a letter from employer stating your job is not at risk with Covid.

Is it common practice for lenders to ask for this? I would think that some employers would be worried about unintended consequences - e.g. potential employment disputes if they declare that someone's job is not at risk and later find themselves having to make them redundant anyway. 

quickymart:

I guess if I have a larger deposit, I don't need to ask for as much for a mortgage, and can service it more easily. That was my line of thinking anyway.

eg, house is $600,000, deposit = $250,000 (for example) - I've got just over 40% for a deposit, and they would be loaning me $350,000 over 30 years etc. Could that possibly work?

concordnz:
Yes it IS now common practise in the current environment.
So don't get offended when you get required to provide this.

Its the banks covering their butt's with their legal requirements under 'responsible lending' it would seem.

If your employer won't provide this - it simply means your income & borrowing capability will be scaled back further.

Got any evidence for this assertion?

concordnz:

quickymart:

 

I guess if I have a larger deposit, I don't need to ask for as much for a mortgage, and can service it more easily. That was my line of thinking anyway.

 

 

 

eg, house is $600,000, deposit = $250,000 (for example) - I've got just over 40% for a deposit, and they would be loaning me $350,000 over 30 years etc. Could that possibly work?

 

Yes, again - only if you have the income/cashflow to service a 350k loan. (under the banks criteria mentioned previously)

What a bigger deposit allows you to do is buy a bigger house and get a flatmate - which also allows you to service a bigger mortgage...... Realistically people have to consider these types of compromises (flatmates) simply to purchase currently.
You can moan about it and refuse to entertain the idea & not be able to buy - or you can accept the realities, and move forward in life with these types of compromises in it.

No issues whatsoever with having a flatmate, I would make sure however I purchased a place with enough room for everyone who would live there.

It's not an ideal situation, but if that's what's required to service a mortgage, so be it.

Seems a bit naff a flatmate needs to sign something saying they'll live there however (I saw someone say this earlier in the thread).

concordnz: Yep, direct knowledge of multiple people & through multiple different banks.
And corroborated by Mortgage Brokers.

I think that if you are claiming employers are now being required to write letters confirming employment, you need to make a verifiable assertion.