Any chance?

Any general questions you might have in regards to loans and finance.
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Joined: Tue Feb 16, 2010 2:57 pm

Any chance?

Postby fully » Tue Feb 16, 2010 3:07 pm

Hi there,
I'm just wondering if there is any chance of getting a home loan with no genuine savings as a deposit..

I'm looking at a brand new unit (being built) in Melbourne for $205000 with a completion date around AUG 2010, as I would be a first home buyer I would be eligible for $18,000 first home owners grant as it is brand new.

I would be using the FHOG as my deposit, plus I would be able to save a few thousand more before completion...
I would obviously need to purchase one ASAP before they are all sold.

Is this at all possible?

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Otto Dargan
Mortgage Specialist
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Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia

Re: Any chance?

Postby Otto Dargan » Tue Feb 16, 2010 3:29 pm

The maximum you could borrow with a no genuine savings loan would be 90% of the purchase price. If this plus the grant is enough to cover the costs then you may be able to do it. The possible problems are:

* Lenders need to know why you haven't been able to save. Good reasons are because you have been paying rent, been overseas, recently been married etc.
* If you have any credit problems then your loan will be declined.
* With an off the plan purchase you take the risk that lenders change their policy or the valuation changes between now and completion. If so then you may be left without a loan on settlement day! So it is good to have a backup source of funds such as family.
Otto Dargan
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P | 1300 889 743
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