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
First home buyer
- 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
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.
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.