Hi there home loan experts team, I am planning to buy a house worth $510,000 for which I need to borrow around 85% of the property value. How easily do banks approve such amount of loan? What would I need to do to make sure I qualify for this loan?
FYI – I earn $55,000 a year as an assistant manager in a marketing company.
How do I qualify for 85% loan?
- Otto Dargan
- Mortgage Specialist
- Posts: 7730
- Joined: Sat Sep 06, 2008 5:55 pm
- Location: Sydney, Australia
- Contact:
Re: How do I qualify for 85% loan?
Hi and welcome to the forums albee,
Lenders will be willing to approve your loan if the applicant meets all the lending criteria. Some of the criteria you may need to meet to qualify for a loan and borrow 85% of the property value are as follows:
Otto
Lenders will be willing to approve your loan if the applicant meets all the lending criteria. Some of the criteria you may need to meet to qualify for a loan and borrow 85% of the property value are as follows:
- You should have a clear credit history by paying all your bills such as rent, credit cards, personal loans and other debts on time every time for the last six months.
- You should have a stable employment. To determine whether or not you have a stable job, lenders may require you to have been in your current job for six months or more.
- You should have a good income source. Lenders want you to have a job with good pay so that they can be sure about your ability to repay any loan over 80% of the property value.
- You should have a strong asset position. Lenders want to see that you have a good asset position relative to your age and income.
- You should have sufficient genuine savings. Many lenders require you to have saved up at least 5% of the purchase price in genuine savings.
Otto
Re: How do I qualify for 85% loan?
Okay, I have heard that banks charge high LMI on loans over 80%. Is this true. If so, could you tell me how I can avoid paying LMI on this amount?
- Otto Dargan
- Mortgage Specialist
- Posts: 7730
- Joined: Sat Sep 06, 2008 5:55 pm
- Location: Sydney, Australia
- Contact:
Re: How do I qualify for 85% loan?
Hi albee,
It is true that most lenders start charging LMI to the borrowers if the loan is over 80% of the property value. However, there are some lenders who may be willing to lend you up to 85% of the property value without charging LMI on the loan.
These lenders will require you to meet the following criteria before they decide to waive the LMI:
If you would like to know more about these then you can check out our website. We can also be reached on 1300 889 743 or you can fill in our free assessment form to see if you qualify for a loan or not.
Cheers,
Otto
It is true that most lenders start charging LMI to the borrowers if the loan is over 80% of the property value. However, there are some lenders who may be willing to lend you up to 85% of the property value without charging LMI on the loan.
These lenders will require you to meet the following criteria before they decide to waive the LMI:
- Your loan amount should not be more than 85% of the property value (85% LVR).
- You should have a perfect credit history.
- You should be buying a property (refinances to purchase a property may be accepted).
If you would like to know more about these then you can check out our website. We can also be reached on 1300 889 743 or you can fill in our free assessment form to see if you qualify for a loan or not.
Cheers,
Otto
Re: How do I qualify for 85% loan?
Okay, that’s great! I will give you a call to see if I can qualify for waived LMI. Thanks so much for your help Otto. Speak to you soon. Bye!
Re: How do I qualify for 85% loan?
Hi there, I too have a plan to buy a house soon. I am a photographer and I work for a leading fashion magazine. I was hoping to get some discount on the LMI while applying for a home loan. I was reading your reply and I I don’t meet the criteria required to qualify for waived LMI. So are there criteria for receiving LMI discount as well?
- Otto Dargan
- Mortgage Specialist
- Posts: 7730
- Joined: Sat Sep 06, 2008 5:55 pm
- Location: Sydney, Australia
- Contact:
Re: How do I qualify for 85% loan?
Hi burGer,
In some circumstances, lenders may be willing to offer a home loan with a discount on LMI.
You would need to be in the following situation to qualify for LMI discount:
Please note that this may only be available through the lenders that deal with these specific LMI providers and have negotiated this discount on behalf of their customers.
Cheers,
Otto
In some circumstances, lenders may be willing to offer a home loan with a discount on LMI.
You would need to be in the following situation to qualify for LMI discount:
- You are buying a property (refinances not included).
- You have saved up at least 5% in genuine savings.
- You are not be borrowing more than 95% of the property value.
- One borrower has been in their current job for at least two years and the other borrower for at least six months.
- You have a perfect credit history.
- You are not borrowing more than $800,000.
- The property that you are buying is in a capital city or major regional centre.
Please note that this may only be available through the lenders that deal with these specific LMI providers and have negotiated this discount on behalf of their customers.
Cheers,
Otto
Re: How do I qualify for 85% loan?
Oh okay, I didn’t know about this. Thanks for your help Otto! Much appreciated.