Moving town - get mortgage quit job / find new job get mortgage

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jonathan18

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#2424739 21-Feb-2020 06:17

Yeah, I think the most critical advice has been made a few times already: go see a mortgage broker or a bank about what they’re willing to lend you. It’ll also give you the chance to ask questions and get answers from practitioners in the field. At the moment, all advice here is speculation, given the specifics of your situation aren’t known. Better to know any gotchas upfront than find out when you’re further down the road...

mb82

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#2424766 21-Feb-2020 08:18

nickb800:

My understanding is that income from board is considered a bonus - lenders will want you to be able to service the loan comfortably on your own.

The car thing makes sense to me - repayments on $50k would be at least $2,600 a year - a similar figure to car ownership costs (if a little bit low, depending on usage). So it follows that if you're spending $2,600 on your car, that's $2,600 you can't spend on your mortgage. Also bear in mind that at $50k, the bank will be (rightly) assuming that most of your income will be going on basics/fixed costs. As income grows from there, borrowing power would increase non-linearly (e.g if $50k income means $30k spent on tax/basics, that leaves $20k for the mortgage. $60k income means more like $30k for mortgage. Roughly).

As to the relevance of mortgage calculators - when you meet in person with a bank/mortgage broker, they will probably do a detailed budget with you for all aspects of your spending and use that to determine how much you can afford to servicel/borrow. So the only tools are not the final word, but probably a good indicator.

I guess it makes sense when repayments on the 50k portion are $2,600 but it's a large difference. I have a second old car that is not on the road at the moment. Might pay for repairs in cash if my bank statements are going to be combed in the near future.

mb82

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#2424768 21-Feb-2020 08:26

jonathan18:

Yeah, I think the most critical advice has been made a few times already: go see a mortgage broker or a bank about what they’re willing to lend you. It’ll also give you the chance to ask questions and get answers from practitioners in the field. At the moment, all advice here is speculation, given the specifics of your situation aren’t known. Better to know any gotchas upfront than find out when you’re further down the road...

Agree, however I am probably about stage 1/2 out of 10 in learning something I know very little about, the responses here have certainly given me more general understanding so thanks for that, you are right the next step is go and see someone, hopefully 3+ months in a new job does not hinder the situation significantly, would rather be settled first job wise but housing is not going up slowly and waiting 6 months before being able to get a mortgage again.. wow

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