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100% loan?

Posted: Fri Mar 12, 2010 3:09 pm
by tracedkle
Hi, I am a first home buyer, unfortunatelly i haven't saved any money as i've travelled a little bit since moved to Australia 3 years ago.

I have a stable job (same job since i moved here) and earn around $90k Also have a good credit history.

i'm looking to buy a property in between $300k and $400k

what do you advice

thanks for the help

Re: 100% loan?

Posted: Fri Mar 12, 2010 3:26 pm
by Otto Dargan
Firstly are you an Australian Citizen, Permanent Resident or are you on a temporary visa?

Assuming you are an Australian Citizen or PR then you can only get a 100% home loan with a guarantor.

You can get a 95% loan if you save at least 3% of the purchase price. This needs to be saved yourself with regular contributions not large lump sum payments.

If you get a gift from your parents then you can borrow 90% however you will need to prove a small amount of savings on your own or at the very least an ability to pay your rent on time.


Re: 100% loan?

Posted: Fri Mar 12, 2010 4:14 pm
by tracedkle
Hi Otto,

thanks for your prompt response, sorry for not clarifying that. I got the citizenship last year.

sorry for the dumb question, but would the 3% savings be additional to the first home buyers government loan?


Re: 100% loan?

Posted: Fri Mar 12, 2010 6:56 pm
by Otto Dargan
Yes the 3% genuine savings would need to be money you have saved yourself. Sale of assets, government grants, tax refunds etc are all excluded from genuine savings.