Are there any decent options for us with a low deposit?

Any general questions you might have in regards to loans and finance.
Elisabeth
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Joined: Fri Apr 19, 2019 6:31 pm

Are there any decent options for us with a low deposit?

Postby Elisabeth » Fri Apr 19, 2019 6:32 pm

Hi, my husband and I are looking at buying our first house in West Hobart. It is a three bedroom house listed at $644,000, we’ve already been to the property and are really keen on it. We’re both young professionals in our respective field with decent income but not a lot in savings. So far in the last six months, we’ve saved up around $30,000 in a joint account. Are there any decent low deposit options for us?

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Otto Dargan
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Re: Are there any decent options for us with a low deposit?

Postby Otto Dargan » Fri Apr 19, 2019 6:44 pm

Hello Elisabeth. Welcome to the forums.

Great job on saving a deposit. To qualify for a 95% home loan as a minimum you’ll need:
  • Deposit: A minimum of 5% deposit, this can include the first home owners grant (FHOG).
  • A steady income: You should be earning a regular income to support your mortgage repayments.

When borrowing over 80% of the property value you’ll have to pay Lenders Mortgage Insurance (LMI). You may be able to add the LMI (capitalise) on top of your home loan.

Not all lenders offer 95% home loans as they consider them to be higher risk. Lenders pick and choose who they approve.

Our mortgage brokers specialise in 95% home loans.

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a 95% mortgage.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Elisabeth
Posts: 3
Joined: Fri Apr 19, 2019 6:31 pm

Re: Are there any decent options for us with a low deposit?

Postby Elisabeth » Sun Apr 21, 2019 2:47 pm

I think I should mention that we have a car loan with $18,000 owing and a couple of credit cards with $10,000 owing between us. Is that going to be an issue?

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Otto Dargan
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Re: Are there any decent options for us with a low deposit?

Postby Otto Dargan » Sun Apr 21, 2019 4:48 pm

Hi Elisabeth,

As long as the debts are less than 10% of the purchase price ($64,400 in your case) you can still be considered for a 95% home loan provided you can service the home loan as well as your debts without hardship. Lenders will look at your debt-to-income ratio.
Most lenders are strictly against borrowers having a large amount of unsecured debts.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Elisabeth
Posts: 3
Joined: Fri Apr 19, 2019 6:31 pm

Re: Are there any decent options for us with a low deposit?

Postby Elisabeth » Sun Apr 21, 2019 5:35 pm

I’m not quite sure if we can get a home loan with a good interest rate at a high LVR. Does a high LVR automatically mean you’ll incur a higher interest rate?

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Otto Dargan
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Posts: 7398
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: Are there any decent options for us with a low deposit?

Postby Otto Dargan » Sun Apr 21, 2019 10:38 pm

Hi Elisabeth,

Not necessarily.
One of our lenders has a special 95% plus LMI home loan available for low-risk borrowers with a 1.40% discount for loans over $500,000 and 1.30% for loans over $250,000 to $500,000.

To qualify:
  • You must be buying a property (refinances are not accepted).
  • You must have at least 5 % in genuine savings (some exceptions are made for renters).
  • You’re borrowing no more than 95% of the property value plus LMI.
  • You must have been in your job for at least 6 months, with 24 months in the same line of work or industry.
  • You’ve got a perfect credit history.
  • You’re borrowing between $250,000 and $1 million.

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a special discounted 95% plus LMI home loan offer.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts


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