Hi.
With the global financial crisis upon us, and realising that financial institutions are clamping down on lending, I was hoping someone could give me some information regarding the current lending criteria for a PPOR my partner and I are looking to obtain in the next 12-24 months in residential Melbourne.
Our situation is as follows: both full-time permanently employed for several years at our respective workplaces. Combined gross income approximately $105,000 per annum. No outstanding loans. Not eligible for FHBG as I co-owned a property several years ago. We are currently savings towards deposit, stamp duty etc.
Are 95% loans still available (realising LMI would be payable over 80%)? Lending calculators seem to throw up huge amounts that can be borrowed at our income, but what amount would be considered responsible at our income level?
Any relevant information I may have missed would be appreciated.
Thanks
RodoDo you have a history of savings as from what I have seen Banks are currently tightening the proven savings evidence requirement because of the FHOG suddenly adding $24,000 to first home buyers deposits.
Hi Rodo
Yes at the moment 95% LVR plus LMI is still just available but it wont be long before maximum LVR will be 90% across the board.
As Duckster has mentioned the biggest problem First Home Buyers now face in obtaining finance irrespective of whether the FHOG Boost continues or not is that lenders and mortgage insurers now require evidence that you have saved over a 6 month period an amount of circa 5% of the purchase price. I.e on a purchase price of $400,000 you need to have saved $20,000 over 6 months although the total depost requirement would be $40K plus costs.
Richard Taylor | Australia's leading private lender
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