Win at home loans

Can Barnaby BEET the home loan system now he’s a backbencher?

The news is in: Barnaby Joyce is moving to the backbench, AND moving out of his rent-free Armidale apartment to look for new digs. Should he take the plunge and buy a property? We’ve decided to help him out in his hour of need by looking at what he’ll have to consider to take out a home loan…

What sort of pad can Barnaby afford?

We turned to our trusty home loan calculator to see what it said about how much Barnaby could borrow – seems even our calculators have something to say about Australia’s most talked about man!

To find out how much Barnaby can borrow the calculator needed some juicy details including his relationship status, dependants, expenses and salary. We factored in a joint application (with Natalie Vikki), de facto relationship status, and three dependants (two children under 18 from previous marriage,  plus #barnabybaby).

Each dependent reduces the amount Barnaby can borrow. And we’ve assumed that Vikki goes back to work to support Barnaby’s significantly reduced wage. Her reported $138,000 previous salary will mean the couple can borrow a lot more.

We also factored in Barnaby’s $416,000 salary (ka-ching!) $199,040 salary – a relatively humble living compared to his baller days as the Deputy PM. And we guessed his other expenses at $4,000 a month because wining and dining in Canberra, new cot for #barnabybaby, childcare and other “official business”. We needed a number to put in the calculator and, well, let’s face it, in politics everyone pulls numbers out of the air and pretends they’re legit!

The result? Barnaby and Vikki could borrow between $1,900,672 and $2,362,959. Looks like the new couple are eligible for somewhere pretty nice.

We looked on Realestate.com.au and saw that Barnaby could afford the best place in Armidale. This luxe five bedder listed for $1,295,000 looks to be comfortably within Barnaby’s reach. It even has enough room for all his kids.

Could this be a potential house for Barnaby?
Fit for a Deputy PM (or a backbencher)
Barnaby's potential house floor plan
Room for the kids from both relationships

 

Barnaby Joyce's potential house
Vines about to grow over the windows to provide a buffer from the press #ideal

Watchouts when applying

So we know Barnaby could land somewhere pretty good. What has made him a solid home loan candidate and what has worked against him?

Reeling in the big bucks

Barnaby’s and Vikki’s combined high income of $337,000 significantly boosted their borrowing power and would make banks willing to lend them a higher amount. #powercouple

A youthful partner

Having a partner to apply with works in Barnaby’s favour because banks are generally willing to lend more when two people apply together instead of one.

Plus, the fact that Vikki is younger than Barnaby and has more working years ahead would usually mean that the bank will look more favourably upon their application and would consider a longer loan term, than if he applied solo. This is because many lenders are more cautious lending to people over the age of 50 because they have fewer working years ahead – and Armidale’s main man turns 51 in April.

However, if Vikki didn’t return to work the amount the pair can borrow would reduce to between $787,000 and $978,000 because they would be considered a single income family and Vikki will be classed as a dependent. 

Regional area

Buying in a regional area may reduce the amount Barnaby could borrow because some lenders have caps on the amount they will lend in regional areas due to more of a risk with resale.

Divorce not finalised

This is a big one. Financial advisers generally warn against buying a property with a new partner until the divorce is finalised because of the risk of losing your new asset.

Pro tip: wait until the divorce goes through before buying, Barnaby. A rental could be a safe interim option in the meantime (particularly if you can get mates rates).

Barnaby’s had a tough time lately. But we reckon he’s due a win. So B, when you’re ready to buy, we’re on 133 866.

Time for the legal disclaimer: The financial numbers we’ve talked about here are completely hypothetical. We have no idea what Barnaby’s actual income, assets or expenses are and we’re not claiming we do. 

 

This information in this article is general only and does not take into account your individual circumstances. It should not be relied upon to make any financial decisions. uno can’t make a recommendation until we complete an assessment of your requirements and objectives and your financial position. Interest rates, and other product information included in this article, are subject to change at any time at the complete discretion of each lender.

Add a Comment

You might also be interested in

Tough times for Australia’s landlords

These are stressful times for Australia’s property investors. The popular image of property investors might be of the mega-rich, but the reality is that the majority are mum and dad investors who have worked and saved hard to buy an investment property for their retirement or to leave their children. So when tenants have stopped

When should you restructure your home loan?

Your property loan should never be a set-and-forget proposition. Over time, your needs or circumstances might change and so there might be a type of home loan that suits you better than the one you have. As a result, you might want to restructure your loan – that is, change some of its key features

Refinance or renegotiate to get a better deal on your mortgage

It’s always a great feeling to get your finances sorted out when you buy a home or investment property. But that doesn’t mean you should sit back and completely forget about your mortgage, because the home loan market and your financial circumstances can change. Even if you felt that you got the best possible deal

Search.
Compare.
Settle.
Strut.

Get started

Analyse my home loan

Analyse