Troutman

Just a hypothetical question in case anyone out there has had experience in this area. If someone were spending $15k on a car and $200k on a house, is it better to keep the loans seperate (ie pay the car off quicker), or to buy the car on the home loan and therefore enjoy lower repayments and/or the ability to make more than the minimal payments for the house?

Very interested in any insight, because I am very new to this stuff. Cheers all!

Glock

I'm paying off 15,000 at 258.40 a month for 7 years. 1.5 years into the loan and I'm thinking maybe I shouldn't have got the loan, it would have been better to save it. But then I listen to my car stereo and a look at all the other stuff I got with it and then I feel better.

My personal loan is locked at 11.9% for the 7 years. Cos I was a student at the time the 100 dollar application fee was waved. I can make as many payments as I want plus I can pay out the difference early without penalty. I asked them at the time about getting a car on a home loan rate and they say a home loan is for a home not a car, besides to get a home loan I think you need to talk to the bank manager and prove you can save x amount of dollars in x amount of months. Personally I would keep them separate, but I don't think you can borrow 215,000 dollars and spend 200,000 on a house and 15 on a car.

The best advice I can give is go into the bank and ask them persoanlly. I spent 15 minutes with a chick at the enquries desk and she told me everything I needed to know and then some. By the way, I went with the commonwealth bank just so you know

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Glock

Also, if your worried about not being approved. They approved me when I was a employed as a causal earning 1200 a month, with no guarantor. They did need payslips for the past 4 weeks thou and a plan on how I was going to spend the money.

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old_mate

When you get a house loan, go for the car loan as well.

then when you can, change banks. They'll pay out your car loan and add it to the mortgage (so you own the car and pay less interest)

There are pro's and con's but im not going to bother getting a loan for a car/to mod the EL. (well, i'll say that for the next 5 mins it may change). Im only young, want a house so bad so I'll get that then get a bit of equity......then build something decent

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oneredED

We got our home loan extened by a few though because as far as our bank knows, we are renovating (sp?) our house. These DIY mods to our house are actually 3 cars and a motorbike. Works out much much cheaper than car loan or personal loan. The main gains you'll get is in the lower interest rates. Thing is, you're car isn't technically paid off though until you pay off the house. Do your research as to the legalities and such, as this is probably a quite dodgy scheme lol.

Jared

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Noboss

By putting the car loan in with the house, your gain in the house prices are paying for the car. So your realy getting the car for nothing.....

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Troutman

Cheers for the responses guys!! I've given it some thought and like the idea of combining the 2 more than ever. Because I'll only have one long-term loan to worry about, I'd be able to spend more (say, $250k) on the house too. I plan to keep the car I'll be buying for a long time. To the best of my knowledge, it is not illegal as such to do it this way, though it might count as a little dodgy. Nothing wrong with that.

Thanks again.

Dark_Horse

Yeap, nothing dodgy. sbutler has nailed it right on the head.

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Troutman

Well my understanding is that the bank would only confidently give these loans because they know they can always repossess the house at worst and get all the money back. The same doesn't apply to most cars, and certainly not mine. But in light of the point made by sbutler, even the bank can't go wrong. :s5

NZ

what you looking at getting? car wise

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