MOC (ASX) Mortgage Choice (MOC) Time to buy ?

Originally posted by tenma: ↑

Unfortunately thats just not true.

Have a salaried job and 20% deposit in no way ensures you qualify with every lender.

1. Buying an apartment. Many lenders require 30% deposit to avoid LMI. So you might go to a lender thats charging LMI and not even realise that there are other lenders who arent getting the loan insured
2. Are you in an essential service industry. Some lenders will take 80% of your overtime/shift allowance and some will take 100%
3. Have a second job. Some lenders wont consider it if its less than 2 years, some might take 80%, some might take 100%
4. One partner on a visa? again some options some not
5. Construction. Some lenders wont do construction, some will. some lenders charge significantly higher rate for construction
6. Receive family tax benefit? Some lenders will accept it and some wont.
7. Some lenders have an assessment rate of 7.25 % and some have assessment rate of 8%, borrowing capacity will be very different between those options
8. Did you take some time off in the last 3 months without pay, some lenders that kills the application some it doensnt
9. Casual. Some lenders will look at you after 3 months, some 6 months, most 12 months. Some will calculate your income on 48 weeks, some on YTD, some on group certificate. Some 100%, some 80%

This is a fraction of the examples I see everyday. The truth is I probably see a client that could easily qualify with every lender once in a blue moon. It happens but its nowhere as often as you think.

Expand

You didn't read my post correctly.

I specifically used a salaried person, not someone on overtime shift work casual etc. People without steady, predictable income shouldn't be applying for mortgages.
if you need a second job to buy a property then you can't afford to buy one.
If you're relying on tax credits to buy a property you can't afford one.
if you don't have a high enough deposit to qualify for a loan from a mainstream, lender you can't afford one.

No wonder so many people are whinging about the rising cost of living!

Too many people have bought the con that they need to buy a property when in reality a significant % should be renters & not ever own a property.
Look at Germany as an alternative, a much lower % of home ownership & tenants are actually treated with respect rather than second class citizens.