Buying a house on credit card

[Flying Fish]

Is this possible? I have about three cards with combined balance of about 30K. Can I use this for deposit on a modest abode and still get the necessary financing from a mortgage broker?

 

[tech/a]

Well you probably could through a low doc broker.
But you'll probably be in the bankruptcy courts a few months later.

 

[Sean K]

Is this possible? I have about three cards with combined balance of about 30K. Can I use this for deposit on a modest abode and still get the necessary financing from a mortgage broker?

Disaster looms FF!

Start saving!

Or rent!

 

[wabbit]

About a dozen or so years ago when credit card reward programs were better than now, a couple bought a house in my suburb. They had all their finance arranged with their Financial Institution first, then paid for the house on their AMEX card and accumulated the reward points. By the end of that month, they used the pre-arranged finance to pay off the credit card and got a BMW with the reward points.

At the end of the month, they had a new home and nice car!


wabbit

 

[bigt]

We are nearly there re savings for a house, I have a decent income as does the wife, though currently short of about $20 (thought you had 12 months to pay stamp duty...not so). I am looking into using my cc for a cash advance then throwing it onto a new card with 0% interest for balance transfers, uisng my wifes wage to pay if off over 6 months. On paper looks like it will work, though not sure which CC's allow you to balance transfer cash advances on the old card - am looking into it. I am certainly seeing the market picking up in the Sydney suburbs we are looking at (inner west..up 11% in last 3 months!!)..though who knows what will happen with another rate rise, very likely next week.

 

[numbercruncher]

Oh my God .......

 

[vicb]

Talking to a couple the other day who just bought a house at around $380000 on a 110% lend.
No savings and limited employment history.
Just makes you think, if you do not any savings at all how the hell do you think they are going to keep up the repayments.
Wait until interest rates head upwards.

 

[mime]

Yeah interest rates on credit cards is pretty high. I'm sure if you looked around you could find a better deal from a lender.

 

[Sean K]

Look, to be perfectly frank, this is just a damn silly idea, and I can't believe people are actually amenable to it. :dunno:

 

[nioka]

Is this possible? I have about three cards with combined balance of about 30K. Can I use this for deposit on a modest abode and still get the necessary financing from a mortgage broker?

I'm surprised that anyone interested enough to access this forum would even consider this. Are you fair dinkum or just stirring the pot?
There is only one way to use a credit card and that is to use it as much as possible, get the benefit of no bank transaction fees but ALWAYS pay it off on time.
In the last year I put $35,000 + on my card and got $350 in gift vouchers with the points. The banks are not as free with points as they were in the past. A few years ago I had a $3000 rebate on a holden with 2 years points.
But, once again ALWAYS pay off on time as the rates are punitive.

 

[Mofra]

Talking to a couple the other day who just bought a house at around $380000 on a 110% lend.
No savings and limited employment history.
Just makes you think, if you do not any savings at all how the hell do you think they are going to keep up the repayments.
Wait until interest rates head upwards.

Sadly there are plenty on non-conforming lenders who will throw cash at anything with a pulse. Interest rates are generally much higher than standard lenders (up to 10% secured by property) as they have such high default rates (and lending at high LVRs more defaults at negative equity) they need to recoup capital out of their general loan book.

On a side note, wasn't there a US$30m + Amex purchase a few years back, someone buying a private jet? Would hate to have seen the transfer fee on it, but that would be a serious reward point earner

 

[questionall_42]

I'm surprised that anyone interested enough to access this forum would even consider this. Are you fair dinkum or just stirring the pot?
There is only one way to use a credit card and that is to use it as much as possible, get the benefit of no bank transaction fees but ALWAYS pay it off on time.
In the last year I put $35,000 + on my card and got $350 in gift vouchers with the points. The banks are not as free with points as they were in the past. A few years ago I had a $3000 rebate on a holden with 2 years points.
But, once again ALWAYS pay off on time as the rates are punitive.

I agree Noika. And let me add that credit cards are wonderful tools that let you take advantage of the time value of money - i.e. I can pay all my bills/purchases on time and get up to 55 days interest free. I can then use that cash flow for investments, or let it sit in my cash account earning 6%p/a (which is a nice little earner over time)... ... this is all good AS LONG AS YOU DON'T PAY ANY INTEREST.