Yes, there are specialist lenders that offer 95% plus LMI home loans. However, major lenders, in particular, do not approve low deposit home loan applications.
In order to qualify with the minimum 5% deposit, you’ll need:
- A good income: Lenders tend to be quite strict when assessing your ability to pay back a 5% deposit home loan.
- Stable employment history: Although there are exceptions, this usually means that you’ve been working in the same job for the past 6 to12 months.
- A clear credit history: Your credit file must have minimal credit enquires and be free of defaults.
- Strong asset position: Lenders will assess your income to asset position relative to your age.
- Little to no existing debt: Having more than one credit card and/or personal loan is a red flag.
- Proof of 5% in genuine savings: This is usually in the form of regular deposits into a savings account over a period of 3 months.
Cheers,