Are there any decent options for us with a low deposit?

Any general questions you might have in regards to loans and finance.
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Otto Dargan
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Re: Are there any decent options for us with a low deposit?

Post by Otto Dargan »

Hello Elisabeth. Welcome to the forums.

Great job on saving a deposit. To qualify for a 95% home loan as a minimum you’ll need:
  • Deposit: A minimum of 5% deposit, this can include the first home owners grant (FHOG).
  • A steady income: You should be earning a regular income to support your mortgage repayments.
When borrowing over 80% of the property value you’ll have to pay Lenders Mortgage Insurance (LMI). You may be able to add the LMI (capitalise) on top of your home loan.

Not all lenders offer 95% home loans as they consider them to be higher risk. Lenders pick and choose who they approve.

Our mortgage brokers specialise in 95% home loans.

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a 95% mortgage.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

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Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: Are there any decent options for us with a low deposit?

Post by Otto Dargan »

Hi Elisabeth,

As long as the debts are less than 10% of the purchase price ($64,400 in your case) you can still be considered for a 95% home loan provided you can service the home loan as well as your debts without hardship. Lenders will look at your debt-to-income ratio.
Most lenders are strictly against borrowers having a large amount of unsecured debts.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

User avatar
Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: Are there any decent options for us with a low deposit?

Post by Otto Dargan »

Hi Elisabeth,

Not necessarily.
One of our lenders has a special 95% plus LMI home loan available for low-risk borrowers with a 1.40% discount for loans over $500,000 and 1.30% for loans over $250,000 to $500,000.

To qualify:
  • You must be buying a property (refinances are not accepted).
  • You must have at least 5 % in genuine savings (some exceptions are made for renters).
  • You’re borrowing no more than 95% of the property value plus LMI.
  • You must have been in your job for at least 6 months, with 24 months in the same line of work or industry.
  • You’ve got a perfect credit history.
  • You’re borrowing between $250,000 and $1 million.
Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a special discounted 95% plus LMI home loan offer.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

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