Sam and Michelle are a hard working couple in their late 20's they returned from overseas 3years ago , their plan is to get a house ASAP keep working for a couple of years and then hopefully start a family Sam and Michelle's combined gross income is $110,000 take out super and tax they take home $78856 neither have any credit cards or personal loans rent is $475p/w (24,700 a year) which leaves $54,176 both have a car each $8,000 per car per year to own add $5,000 for utilities, $1200 for food and $4,000 for clothing That leaves just over $17000 they have $60,000 in savings and regularly save $800 per month they want to buy a $600,000 house near family Assess whether a home loan application by Sam and Michelle based on typical current lenders requirements is likely to be successful. Provide detailed explanation in support of your answer

Answer rating: 100% (QA)

To assess whether Sam and Michelles home loan application is likely to be successful lets consider their financial situation in detail 1 Income Their ... View the full answer