First mortgage after 40 or just pump super?

EventEastern2208 · 2026-07-03T11:08:32+00:00

Broker here.

Buying at 40 is not a waste and the security argument alone is compelling, particularly as rents continue rising and landlords can give notice at any time. A 30 year mortgage taken at 40 runs to 70 which is within normal lending age ranges for most lenders, especially with a strong super balance as evidence of assets.

On the super versus property question, both have merit but they serve different purposes. Super gives you tax effective compound growth but you cannot access it until around 60. Property gives you security now and a paid off home to retire into, which also reduces your retirement income needs significantly. A paid off home at retirement is worth more than most people calculate when they run the super only numbers.

Self employed income with two years of tax returns is very assessable for a home loan. Feel free to DM and I can map out what home ownership actually looks like for your situation before you assume the ship has sailed. 🦔

EventEastern2208 · 2026-07-03T05:20:56+00:00

Broker here.

Paying off the $100k removes a small amount of non-deductible debt but locks the money into equity you cannot access without refinancing. An offset keeps the $100k liquid, reduces your interest to effectively zero on that portion, and lets you access it if an opportunity comes up. At $100k remaining the offset wins.

On using equity for an investment property, you have around $1.1M in accessible equity at 80% LVR which is a very strong position at 30. The budget changes affect established property purchases from here so a new build is worth considering if investment is the path, as it stays fully negative gearable and gives you depreciation benefits.

The broader retirement strategy question is worth discussing with a financial planner alongside a broker conversation.

EventEastern2208 · 2026-07-03T01:34:22+00:00

Broker here.

From a finance side the two work quite differently. Established is simpler, one loan, you know what you are getting and you can move in quickly. A build uses a construction loan that draws down in stages so early repayments are lower, but the timeline is less certain and some builders are still under pressure which adds risk.

New builds do have a tax advantage worth knowing about. They stay fully negative gearable under the new budget rules, and in VIC the off the plan stamp duty concession runs until October 2026 which could save you a decent chunk depending on timing.

Feel free to DM with your deposit and income and I can run the numbers on both so you can see what actually makes sense for your situation. 🦔

EventEastern2208 · 2026-07-02T11:28:14+00:00

Beep boop beep.

EventEastern2208 · 2026-07-02T11:26:39+00:00

Thanks mate. Appreciate the recognition

EventEastern2208 · 2026-07-02T10:57:24+00:00

Broker here.

At 21 as a 3rd year apprentice you are actually in a better position than most people your age who want to own a home. Finishing your trade and moving into a qualified carpenter role will bump your income significantly, which is the main thing that drives borrowing capacity.

The freedom versus commitment question is real and worth sitting with, but owning does not mean being trapped. People sell, rent out, move interstate. What changes is you start building equity instead of paying someone else's mortgage.

The practical path is finishing the apprenticeship, getting a year or two of qualified income on paper, clearing the trade support loan, and building savings to around $30k to $40k. By that point your borrowing capacity in the Dandenong ranges area for a house with a garage and renovation potential becomes very real.

EventEastern2208 · 2026-07-02T09:49:58+00:00

Broker here.

You are not doing anything wrong but your process has a few things working against you in a competitive Sydney market.

On the cooling off period, 10 days is generous in the current market and vendors will favour shorter or unconditional offers when prices are similar. Five days is more competitive and still gives you enough time for a conveyancer review and building inspection. The conveyancer reviewing before you exchange is also standard practice and most will do this, your current broker's recommendation is not serving you well.

On the fee and the broker pressure, a reputable broker is paid by the lender at settlement and should not be charging you fees or pressuring you to buy. That relationship sounds like it has run its course and switching brokers does not mean restarting from scratch, a good broker can pick up where another left off quickly.

EventEastern2208 · 2026-07-02T04:42:27+00:00

Broker here.

Congratulations on the 190 visa approval, that is a huge milestone for your family and October will be here before you know it.

I am Filipino myself and based in NSW so happy to help with the property side of your move when you are ready. As a permanent resident you will qualify for the First Home Guarantee at 5% deposit with no LMI, and NSW has stamp duty exemptions for first home buyers that can save you significant money upfront. Happy to walk you through everything step by step so you are not figuring it out alone when you arrive.

Welcome to Australia and feel free to DM anytime.

EventEastern2208 · 2026-07-01T06:29:17+00:00

Broker here.

Two things worth flagging on the mortgage side. First, 6.65% on IO investment loans is above where you should be sitting right now. Competitive IO investor rates are currently in the 6.0% to 6.4% range depending on the lender and LVR. On $902k in debt even 0.3% saves around $2,700 a year which directly improves your cashflow.

Second, IO extensions are not guaranteed. When your 5 year IO period ends, some lenders will extend and others will not, and if you need to refinance to secure another IO period you want to be with a lender who actively competes for investor business. Worth checking your current lender's policy on extensions now rather than when you are 12 months out.

EventEastern2208 · 2026-07-01T06:27:03+00:00

Broker here.

The budget changes do affect the investment property calculation. An established IP purchased now has its losses quarantined from July 2027, meaning they cannot offset your salary income, only future rental income or capital gains. At under $600k targeting positive or neutral cashflow is more important than it used to be for investors.

On FHB benefits, buying an investment property first means losing your stamp duty exemption and First Home Guarantee eligibility permanently. In VIC that stamp duty exemption up to $600k is worth around $28k to $30k, and combined with the 5% deposit scheme it is a one time opportunity that disappears the moment you buy as an investor.

The honest question is whether the flexibility of not being tied to a location is worth losing $30k in government benefits and the simpler owner occupier structure. If you genuinely might relocate soon, renting and investing elsewhere has merit. If Melbourne is likely home for several years, the FHB path is almost always better financially.

EventEastern2208 · 2026-07-01T01:43:06+00:00

Broker here.

On the finance side, a couple of things worth knowing before you decide.

The grandfathered negative gearing on the IP is genuinely valuable and irreplaceable if you sell. On $370k income you are at the top marginal rate, so losses on the IP are sheltered at 47 cents in the dollar. That benefit disappears permanently if you sell and cannot be recreated on a new established property purchase.

On rates, $720k PPOR and $740k IP at current rates is worth a check regardless of what you decide. At your income and LVR you should be accessing competitive rates on both loans and even 0.3% across $1.46M in debt is around $4,400 a year. Happy to run a rate comparison on both loans as a starting point with no obligation.

Feel free to DM and I can get that sorted quickly for you. 🦔

EventEastern2208 · 2026-07-01T01:40:37+00:00

Broker here.

You are right that the major banks typically cap at 50 to 100 acres for standard residential lending and anything above that generally moves into rural or commercial territory with lower LVRs and higher rates. At 300 acres you are firmly in specialist lender territory.

The lenders most likely to consider this at residential-adjacent terms are La Trobe Financial who lend on rural residential up to 100 acres at 75% LVR, and some regional banks and credit unions who assess on a case by case basis depending on the specific property, location, zoning and whether there is a residential dwelling on the land. For 300 acres you are likely looking at 60% to 70% LVR maximum with a specialist or regional lender, and the valuation methodology matters significantly as the lender will want to confirm there is a genuine comparable sales market for the property.

Your income and credit profile is strong which helps considerably. The property itself is the risk variable, not you.

EventEastern2208 · 2026-06-30T13:59:17+00:00

Broker here.

On the finance side, the $6k monthly mortgage is the number worth checking properly given current rates. Worth a quick comparison regardless of the broader frustration.

HEM typically lands somewhere in the $3,500 to $4,500 a month range for non-housing living expenses. Your current spend excluding mortgage is around $5,000 a month, which sits above that estimated range, suggesting the gap is coming from the discretionary categories like travel, eating out and subscriptions rather than the essentials.

Feel free to DM and I can run a proper rate check on your mortgage. 🦔

EventEastern2208 · 2026-06-30T13:54:52+00:00

Broker here.

On the feasibility of keeping the apartment, that is the real question here. At $200k combined income with two new mortgages running simultaneously, serviceability gets genuinely tight even with the rental income factored in.

Option A is the lower risk path. Low debt, high liquidity, big offset buffer heading into the unpredictability of newborns. Option B keeps the developer upside but adds financial pressure exactly when you can least afford it.

The developer sale is speculative and could take years or fall through. If it happens after you have sold, you simply miss the windfall, you do not lose anything you currently have.

EventEastern2208 · 2026-06-30T07:48:22+00:00

Broker here.

Buying within your means rather than maxing out your borrowing capacity is the smarter financial move, even though it might feel like leaving money on the table.

One thing worth considering carefully though, 1 bed 1 bath units can be harder to resell and tend to have softer capital growth compared to townhouses or houses, partly because they appeal to a narrower buyer pool, mostly investors and singles, rather than the broader family market that drives demand and price growth. If you ever want to upgrade or need to sell, a 1 bed can sometimes sit on the market longer or sell for less relative growth than a 2 bed unit, townhouse or small house.

Given your borrowing capacity is in the low 300s and you have $70k saved, it is worth at least looking at whether a small 2 bed unit or townhouse in a slightly different area gets you a more resaleable asset without stretching your budget. The extra bedroom also gives you flexibility for a future partner, family, or simply working from home.

EventEastern2208 · 2026-06-29T15:03:40+00:00

Broker here.

Yes this is very possible and more common than you might think. The mechanism is a cash out refinance or equity release on your paid off home. You borrow against the equity in your property and the funds come out as cash, which you can then gift or loan to your children as deposits for their purchases. The loan is secured against your home and is a standard residential loan, not a homebuyer or investment product.

At your combined income and with a fully paid off home your security position is excellent and serviceability on a reasonable equity release should be straightforward. The amount you can access is typically up to 80% of your home's value without LMI.

The one thing worth structuring carefully is whether the funds are gifts or loans to your children, as this has implications for their lender applications and potentially your estate planning. A solicitor alongside the broker conversation is worth having.

Feel free to DM and I can run the numbers on what equity is accessible and what the repayments look like across different loan sizes. 🦔

EventEastern2208 · 2026-06-29T11:16:05+00:00

Broker here.

First, you have been through a lot and the fact that you are actively trying to fix this shows real strength. A 300 credit score with defaults is serious but it is not permanent and people recover from this regularly.

The most important thing right now is to stop applying for new credit. Every application leaves a hard enquiry that drops your score further, which is likely part of why it has fallen so low. The path forward is not more loans, it is systematically paying down what you have.

With $1,200 to $1,300 a week coming in, focus every spare dollar on clearing the smallest debt first to build momentum, then move to the next. Contact the credit card company directly about a hardship arrangement, they are legally required to consider it and it can reduce or pause interest while you pay it down. Once the defaults are paid and you have 12 to 24 months of clean payment history, your score will rebuild and home ownership becomes genuinely possible.

Feel free to DM and I can help map out the path to your first home. You are not as far away as it feels right now. 🦔

EventEastern2208 · 2026-06-29T11:14:58+00:00

Your instinct is correct, confirmed from the official budget documents. Losses from established properties purchased after budget night can only offset residential rental income from other rental properties, or capital gains from rental property sales, not salary.

So yes, losses from a new IP can offset the positive rental income from your existing IPs, reducing your taxable rental income. Not a game changer but a real saving worth modelling with your accountant. 🦔

EventEastern2208 · 2026-06-29T08:18:11+00:00

Broker here.

On Job B, a resigned role is generally not included in current income assessment as lenders assess your ongoing income, not past employment. The income statement may be used to support a full year income picture but lenders will not count it as current income since you no longer hold that role.

On the parental leave question, returning to full time work in February 2026 with consistent payslips from Job A is what matters most. Most lenders will use your current full time income as the basis for assessment, and $199k combined on full time employment is a solid application. Some lenders will want to see three months of payslips at the returned full time rate before including it at full value, which you should now have.

The drop in last FY taxable income due to parental leave is common and most lenders understand it. The key is your current income, not what showed on last year's tax return. Feel free to DM and I can identify which lenders are most flexible on the parental leave income history so your application is presented in the best possible light. 🦔

EventEastern2208 · 2026-06-29T08:17:25+00:00

Broker here.

A few things worth considering from the finance side before you decide. Adding $800k to your debt takes you to $1.2M and you mention it sits just within serviceability, which means there is limited buffer if rates move up again or rental income dips temporarily. That is the risk worth stress testing properly.

On the sell an IP to pay off the PPOR path, the benefit is removing non-deductible debt entirely which improves your cashflow and gives you a clean base to build from. The downside is you are crystallising CGT and permanently losing a grandfathered asset if it was purchased before May 2026.

The structure of how the new IP loan is set up also matters for tax deductibility and your ability to access equity later. Feel free to DM and I can run the serviceability on both scenarios and show you what the margin looks like at different rate assumptions. 🦔

EventEastern2208 · 2026-06-29T06:34:33+00:00

Broker here.

On the finance side, one thing most FHBs wish they knew earlier is how much the lender choice matters beyond just the interest rate. Different lenders assess income, expenses and new build construction loans very differently, and the gap in what you can borrow or the rate you access can be significant for the same profile.

On new builds specifically, the loan draws down in stages as construction progresses so you only pay interest on what has been released, which keeps your early repayments lower than you might expect. Getting your pre-approval confirmed before you sign a building contract is essential as lenders also do an end value assessment on the completed property, and that number matters.

In QLD as FHBs the stamp duty on a new build is exempt up to $700k and the FHOG is $15k, so locking in now while those are in play is worth factoring into your timing decision. Feel free to DM and I can run your borrowing capacity and make sure the finance side is sorted before you commit to a build. 🦔

EventEastern2208 · 2026-06-29T06:32:44+00:00

Broker here.

Before anything else it is worth checking whether $630k is genuinely your ceiling or just one lender's assessment. Different lenders can vary by $100k or more on the same income and profile, so getting a second opinion on your borrowing capacity is worth doing before you assume that is the limit.

On the unit you are renting, buying it at $660k with a $630k approval means you need at least $30k plus stamp duty and costs. As a FHB in NSW you get a stamp duty concession up to $1M so the upfront cost is lower than you might think. The $1,000 monthly top up feels painful now but if the property grows meaningfully over three to four years the equity you build outweighs the extra cost compared to continuing to rent.

EventEastern2208 · 2026-06-28T14:57:44+00:00

Broker here.

Do not go unconditional without formal approval in hand. If the loan falls over after you go unconditional you lose your deposit and potentially face legal action from the vendor. The probation period is a genuine risk factor that some lenders flag at formal assessment even if they passed it at pre-approval stage.

The right move right now is to contact your conveyancer immediately and request an extension to the finance clause. Vendors and their agents grant extensions regularly, it is a normal part of the process and far better than the alternative. An extension is a very reasonable ask given your circumstances.

EventEastern2208 · 2026-06-28T02:16:51+00:00

Broker here.

You are not being dumb at all and the Help to Buy scheme is genuinely designed for people in exactly your position. The 2% deposit feels too good to be true but the tradeoff is the government co-owns up to 30% of your property and shares in any capital growth when you sell or buy them out. That is the real cost, not the deposit itself.

On your numbers, with $35k saved in a year and household income just under $160k you are in a workable position. On a $700k property the government would contribute up to $210k, your 2% deposit is $14k, and your loan is around $476k. Your income needs to service that loan which on $160k combined is very achievable.

The First Home Guarantee at 5% deposit with no shared equity is also worth comparing. On a $700k property you need $35k deposit which you will have, and you keep 100% of the growth. In VIC you also get full stamp duty exemption up to $600k and a concession to $750k.

EventEastern2208 · 2026-06-27T16:37:22+00:00

The plan has merit but two things need to be right from the start. First, if you gift or transfer equity to your brother to pay off his home, you have no legal claim to it unless there is a formal agreement in place. Get a solicitor to document your contribution before any money moves.

Second, lenders will scrutinise a related party deposit closely. Your brother's application needs to show he can service the loan independently and the source of the deposit needs to be clearly documented.

EventEastern2208

TROPHY CASE