First Home With No Genuine Savings

Any general questions you might have in regards to loans and finance.
Post Reply
alexjong
Posts: 60
Joined: Wed Jun 17, 2009 5:21 pm

First Home With No Genuine Savings

Post by alexjong »

Hi,

I've currently got a slight problem.

I've approached St George for a Home Loan package, and I've received verbal approval for an 80% loan of $423000. I've got an appointment this afternoon to finalise it.

I'm now hoping to be able to get a 90% home loan of $470000 instead. But I have no genuine savings, nor do I pay rent. St George has said that it's not possible to do this with them. My basic info: $5600/month before tax, clean credit record from Veda Advantage, buying property as an investment.

I've paid 10% deposit on a property already, and contracts have been exchanged. While I'm perfectly able to get by with a 80% loan, a 90% loan would make my life much easier for the next year. 10% of the money is still waiting to be deposited into my Savings account.

Is getting a 90% mortgage still possible in my situation?

User avatar
Tony Dao
Mortgage Specialist
Posts: 111
Joined: Fri Apr 01, 2011 2:41 pm
Location: Sydney, Australia
Contact:

Re: First Home With No Genuine Savings

Post by Tony Dao »

Hi,

Yes it is still possible to get a loan at 90%. However if you have already exchanged contracts you will have to move really quickly. One major obstacle you would need to overcome for a non genuine savings loan is capacity ie based on $470K loan the monthly repayments will be approx $3126p/m - now you have no savings, are paying no rent & seem to have no debts. How can you prove to the banks that you can all of sudden commit to $ 3126p/m ?? if you can answer that - you will get the loan

regards
Tony Dao
Senior Mortgage Broker
P | 1300 889 743 E | tony@homeloanexperts.com.au
Home Loan Experts

Post Reply