Hello Sue. Welcome to the forums.
As a general rule, first home buyers will need to contribute around 5% to 10% of the purchase price as a deposit. The actual amount varies depending on the first home owners grants and the stamp duty concessions available in each state.
An important note regarding the gift from your relative, not all lenders accept a gifted deposit
from relatives, they prefer the gift giver to be a parent or an immediate family member. Relatives can be considered on a case by case basis.
When borrowing 95% of the property value
($475,000) banks are strict in their requirements, however, we have lenders who can help if you’re a little outside the box:
- No genuine savings: Most lenders prefer if you’ve saved up the deposit yourself but this isn’t a requirement with all of our lenders when borrowing 95% plus the cost of Lenders Mortgage Insurance (LMI).
- Property location: Remote locations can be considered over metro locations when borrowing 95% including LMI.Check your location.
- A small amount of debt is acceptable: Lenders prefer borrowers who don’t have a large amount of unsecured debts. If you have less than 10% of the purchase price in personal debts some lenders can still consider you for a 95% mortgage.
- Credit scoring: Each lender will perform their own credit scoring.
- Credit history: Having some black marks on your credit file is okay as long as you can provide a reasonable explanation for the adverse listing.
Give us a call on 1300 889 743
or fill in our free assessment form
to find out if you qualify for a 95 percent home loan.