Don't know if I am a first time buyer.

from_atozinc

Hi,

I am in my late 30's and have never owned a property.

My wife bought an apartment years ago.

We got married 4 years ago and then my wife sold her apartment 2 years ago.

We would be using both our savings to fund a house purchase.

Am I a first time buyer or not ?

Rackstar

Unfortunately you will not be classed as a FTB

lau1247

What is the definition of a first-time buyer (FTB)?

A first time buyer is defined as a borrower to whom no housing loan has ever before been advanced. Where the borrower under a housing loan is more than one person and one or more of those persons has previously been advanced a housing loan, none of those persons is a first-time buyer. This definition of FTB is aligned to the Revenue definition. The flexibility given by the proportionate
limits is in place to allow lenders to make decisions based on an individual borrower’s circumstances up to a specific limit.

(Source)

from_atozinc

Rackstar wrote: »

Unfortunately you will not be classed as a FTB

Ok. Thanks.
What about if the wife just transferred all her money to me and didn't put her babe in application. Would this put me as a first time buyer ?

lau1247

Don't think it work that way, from the conversation I had with the bank mortgage adviser, wife will need to go down as second applicant.

from_atozinc

Thanks. Another question.

I have 2 kids under 3 years of age.
My wife decided to give up her job and instead stays at home to mind the kids.

Are my dependents on a mortgage application form = 2 or 3 ? 2 kids OR Wife and 2 kids.

(I read some places that dependebts are people under 18 - which is why I'm asking the q )

Victor

from_atozinc wrote: »

Ok. Thanks.
What about if the wife just transferred all her money to me and didn't put her babe in application. Would this put me as a first time buyer ?

"her babe"? Her name?

As I understand it, as you are married, you can transfer the money tax free, but as you are married, you have also lost FTB status, as your wife owned property.

from_atozinc

Victor wrote: »

"her babe"? Her name?

As I understand it, as you are married, you can transfer the money tax free, but as you are married, you have also lost FTB status, as your wife owned property.

Thanks. Yep. Should be her "name"

On application forms they have "single" or "joint".


I presume the only option I have is to use "joint"

lau1247

from_atozinc wrote: »

Thanks. Another question.

I have 2 kids under 3 years of age.
My wife decided to give up her job and instead stays at home to mind the kids.

Are my dependents on a mortgage application form = 2 or 3 ? 2 kids OR Wife and 2 kids.

(I read some places that dependebts are people under 18 - which is why I'm asking the q )

It would be 2 dependents in your case, that is what the adviser told me for my situation (Similar to yours except 1 child).

FYI - There is a certain amount the bank takes away before working out the monthly repayment capability. So a couple is 2050 (if my memory serves me correct) or a couple with a child is 2350 (again, if my memory serves me correct). Not sure about a couple with 2 child because I didn't ask.

So for example, if you have a net income of 3000 per months and you are a couple with a child, you can afford to repay 650. The good news is that if you have additional voluntary pension that can be stopped, they can be added to 650 figure from the example.

But keep in mind, even if you have reached your repayment capability to give you an indication of what you can borrow (Repayment x year to reach retirement [Whichever of the couple is the oldest]), the bank takes the lower of the two between that and the 3.5 times salary limit.

from_atozinc

lau1247 wrote: »

It would be 2 dependents in your case, that is what the adviser told me for my situation (Similar to yours except 1 child).

FYI - There is a certain amount the bank takes away before working out the monthly repayment capability. So a couple is 2050 (if my memory serves me correct) or a couple with a child is 2350 (again, if my memory serves me correct). Not sure about a couple with 2 child because I didn't ask.

So for example, if you have a net income of 3000 per months and you are a couple with a child, you can afford to repay 650. The good news is that if you have additional voluntary pension that can be stopped, they can be added to 650 figure from the example.

But keep in mind, even if you have reached your repayment capability to give you an indication of what you can borrow (Repayment x year to reach retirement [Whichever of the couple is the oldest]), the bank takes the lower of the two between that and the 3.5 times salary limit.

Oh ok. So the wife is not really seen as a dependent, weird.

So if you earn 3000 net a month and have 2 children, sounds like you will get sweet feck all of a mortgage, sounds like they would only allow something like 400 a month, of even.

lau1247

from_atozinc wrote: »

Oh ok. So the wife is not really seen as a dependent, weird.

So if you earn 3000 net a month and have 2 children, sounds like you will get sweet feck all of a mortgage, sounds like they would only allow something like 400 a month, of even.

yep, not dependent for the missus from what I was told.

Yeah taking away over 2k before even calculating repayment ability seems nuts and I don't agree with it but I guess it is in place to avoid over borrowing..

yeah seems quite a small amount indeed but even at 400 per month at 12 month for 30 years still get you 153,600 which is quite a big amount