Hello Bryon. Welcome to the forums.
The first thing you’ll have to do is calculate the Loan to Value Ratio (LVR), which is the amount you are borrowing over the value of your property, represented as a percentage. For example, if there is a property valued at $600,000 and an applicant is looking for a loan amount of $550,000, then the LVR is 91.67%.
(550,000 ÷ 600,000) x 100 = 91.67%.
You can use our LVR calculator
to assess your situation. If the LVR is above 80%, then lenders will consider this risky and you might need to payLenders’ Mortgage Insurance (LMI)
Most lenders will require a deposit of at least 5% of the property value as genuine savings to qualify for a mortgage. You have to provide strong evidence that you’re a good borrower.
Alternatively, you can use a guarantor
to borrow up to 105% of the property value. The guarantor will provide a guarantee on your home loan which is secured on their property. A guarantor home loan can potentially save you tens of thousands of dollars in LMI.
If you’re a first home buyer, you might be eligible for the First Home Owners’ Grant
and even be exempt from stamp duty concessions
Talk to our specialists by calling 1300 889 743
or by completing our free assessment form
today to see if you can apply for a low deposit home loan today.