Mortgage for low income tenant

[LeanneS]

I am speaking with a tenant who is keen to buy the house they are renting. They have pretty low income but the landlord is somewhat flexible.

Does anyone here know of a mortgage broker who specialises in low income mortgages?

[brokerman]

No such thing as a low income mortgage, they can either afford the loan or not. It might be possible to tailor the loan size the the income then the Vendor makes up the shortfall. Not a bank deal so expect a higher interest rate. Happy to chat though if you wish.

[donna]

Hi LeanneS,

There are many ways to fund a property as Brokerman and other mortgage brokers will explain and work through the options. I may be wrong but the starting point is what the prospective can put in - i.e. the deposit and where that comes from - could be first home buyers grants, kiwisaver, family etc.

Knowing what you can put in as a deposit is a great place to start and it's never to early to have knowledge of where you're at financially. What you can afford now? What do you need to do to get what you really want in a property?

For example, a builder I know was really keen on buying his first property from me but he had no idea what he could afford and by the time he found out the basics the property was sold.

Often first home buyers only get part of the picture - i.e. told the basics and they're unaware of their entitlements and how a property can be funded.

I suspect there are many prospective homeowners who just went to their bank and take what they were told as gospel so to speak and so they're still renting and probably for a very long time.

They need to 'get interested and inquisitive' - ask questions and don't accept 'no' and give up or put it off.

Just a few thoughts.

cheers,

Donna