Tenants in Common with genuine savings

Hello,

I am expecting to be entering in to a tenants in common agreement later in the year and wanted to clear a few things up before seeing a broker. I expect the broker to be able to answer everything but it would be nice to go in with a bit of knowledge and understanding.

In terms of getting our separate loans, how does the bank view genuine savings, deposits, LVR and FHOG between the two of us? If they need 5% genuine savings, should we each be showing at least 5% of half the value of the property?

In terms of pre-approval in order to know what we can afford, should we be sorting out an agreement first?

Much appreciated.
Thanks

[Hoa Hong]

Hi AlexMoran,

There are lenders out there that will lend up to 95% capitalising Lenders Mortgage Insurance for Tenants in Common applications.

Regarding the genuine savings question even if the loans are split we still require 5% in genuine savings in either both or one persons bank account. There will be one set of First Home Grant for the both of you for this property purchase.

Regarding how much you can borrow, we would need further details:
- Income
- Debts

Would you like me to give you a call to discuss?

Thanks for the reply Hank.

So in regards to the genuine savings, are we doing the wrong thing by saving 5% of our share of the loan in separate accounts? For example if the property was valued at $400k, should we not be saving $10k each to make 5% of $200k? Or can we show a joint balance of $20k between the accounts when it comes time to apply?

I may contact you shortly, now isn't a convenient time due to work commitments.

Thanks
Alex.