Page 1 of 1

Re: How does a gifted deposit home loan work?

Posted: Thu Mar 07, 2019 12:44 pm
by Otto Dargan
Hello Bevan. Welcome to the forums.

You’re not alone, 60% of first home buyers receive some sort of help from their parents.

With a gifted deposit from your parents, some banks will allow you to borrow up to 95% of the property value with no genuine savings.

The banks generally require a signed gift letter from your parents as proof that it is a gift and not a loan.

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a loan with a gifted deposit.

Cheers,

Re: How does a gifted deposit home loan work?

Posted: Thu Mar 07, 2019 3:35 pm
by Otto Dargan
Hi Bevan,

You usually need to pay Lenders Mortgage Insurance (LMI) if you borrow more than 80% of the property value. The more you borrow, the riskier the loan becomes for the lender, and the more you have to pay in LMI.

Please use our LMI calculator to figure out how much LMI you’ll be paying.

The good news is that many lenders will allow you to capitalise the LMI. It means that you can add the cost of the LMI to the top of your loan, so the money doesn’t have to come out of your pocket.

For example, if you were to take out a loan of $450,000 on a $470,000 property, you’ll be paying at least $10,000-12,000 in LMI. You can add this on top of the loan with a few select lenders which will bring your loan amount to $460,000.

Cheers,

Re: How does a gifted deposit home loan work?

Posted: Thu Mar 07, 2019 6:30 pm
by Otto Dargan
Hi Bevan,

The first home owners grant (FHOG) is available to people buying newly-built property or building their first home. So, yes the property has to be a newly-built property.

Please check our FHOG eligibility criteria section to find all the criteria. You may also want to refer to your state’s OSR website.

We’re specialists in first home buyer home loans.

Speak to one our experienced mortgage brokers by calling 1300 889 743 or by filling in our free assessment form to find out if you qualify for a home loan with a gifted deposit.