First home buyer

Any general questions you might have in regards to loans and finance.
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oli
Posts: 1
Joined: Fri Oct 02, 2009 1:42 pm

First home buyer

Post by oli »

Me and my husband would like to take advantage of the extra $3500 first home owners boost which runs out in December 2009 as well as low interest rates to buy a home soon.
Can we use the $10500 from the government as part of our deposit?
Can we get a loan with 5% deposit.
We are wanting to borrow around $350,000.

So how much extra do we need to save for the deposit. Do we need genuine savings??

After any advice really.

Thanks

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Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: First home buyer

Post by Otto Dargan »

Hi Oli,

Yes you can use the $10,500 as part of your deposit. That being said you will need a little additional money of your own to pay for some costs. How much you will need depends on the State / Territory that you are in and also if the lender adds LMI to your loan (capitalises) or deducts it from the loan.

To qualify for a 95% home loan you have to be in a very strong financial position. Very few people meet the criteria, however 90% home loans are much eaiser to get approved for.

Genuine savings are important for most lenders if you are borrowing over 80% or 85%. There are some lenders that can lend 95% with no genuine savings however the approval criteria are very strict.

Give us a call or enquire online and we can discuss the options with you.
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

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