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Re: Can I still get a home loan with a small deposit?

Posted: Thu Jan 17, 2019 8:34 pm
by Otto Dargan
Hey Peter,


Welcome to the forums.

Firstly congratulations on finishing college.
It looks like you're just shy of a 5% deposit, about $4,000 or so.
South Australia has the first home owners grant (FHOG) which may be enough to cover the shortfall.

Alternatively, you can go for the guarantor home loan.

Irrespective of how much you have saved up, a guarantor loan allows you to borrow up to 110% of the property value.

You can also avoid the cost of Lenders Mortgage Insurance (LMI), which can be more than $14,000 if you were to have a 5% deposit on a $450,000.

With a guarantor, you can hold onto the deposit you've saved and use it to set up your home with furniture, put it into an offset account to reduce your interest bill, or use it to make extra mortgage repayments.

Call us on 1300 889 743 or complete our online enquiry form to discover which low deposit option is right for you.


Cheers,
Otto

Re: Can I still get a home loan with a small deposit?

Posted: Thu Jan 17, 2019 9:55 pm
by Otto Dargan
Hey Peter,


We totally understand.

There are still quite a few options available to you.

Even though any sum lower than a 20% deposit is considered high risk by most banks, some lenders will allow you to borrow over 95% of the property value.

It works by adding the cost of LMI on top of your loan so you can avoid this cost upfront.

For all intents and purposes, you can borrow up to 97% of the property value.

In your case, you have just over 4% as a deposit which means you may qualify for this solution.

You will need to show that you are earning a regular income, have a clear credit file and you are buying a standard property in an acceptable location.

Give us a call on 1300 889 743 or fill in our online enquiry form to find out if we can get you approved.



Cheers,
Otto