My first post here, been having a read through the forums and picking up some useful info and advice from other threads. Thanks to all who post here and who willingly help out and share their knowledge.
My situation is that I am looking to purchase my first home (to be my primary place of residence) in the Perth metro area.
I have some genuine savings in the bank – about 3% of my intended purchase price, saved over a period of time.
I am eligible for FHOG.
I have stable income and employment history.
I have stable rental history through an agent/property manager.I have spoken informally to a couple of brokers and I am getting conflicting information about the possibility of finding a 97% loan vs. the need for me to build up a 5% deposit.
I am new to all of this and looking for any ideas people might have on the likelihood of obtaining 97% finance and also whether somebody could give me a recommendation for a good broker who might be able to help somebody in my position. As I mentioned, I am in Perth, so a local broker might be handy, however in this day and age, I suppose it doesn’t really matter where they are based.
Any help/pointers for this rookie would be very much appreciated. Thanks in advance.
Paul.
Hi Paul
Welcome aboard.
95% is the max – but you can have mortgage insurance added on top.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
don’t know about buying with only a 3% deposit…
As Jamie mentioned it’s MAX 95% + LMI = ~97%But i have to be honest it’s not an easy loan to get approved!! your file needs to be water tight!
^^ pop Jamie above an email; great broker!
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
I recently asked my broker about a 97% loan because I had seen them advertised by RAMS and some other lenders.
My broker said (like the other replies above) that these are not genuine 97% loans, they are actually 95% loans with a 2% lenders mortgage insurance added to the loan amount.
So, you actually need the 5% deposit but you end up with 3% equity in the property due to the capitalising of the LMI.
I am hoping to get a 95% loan soon for a PPOR, hopefully it won't be too difficult.
Btw, I can definately recommend my broker, but he is Brisbane based (aussie home loans).
Cheers.
Very much appreciate the replies, thanks guys.
Jamie, I’ll send you over an email with some of my details. I’d be interested to know where you feel I stand now and how far away you think I might be from being able to make a purchase – my deposit is growing pretty steadily, so if I’m not good to go right now, I’m sure it’s not too far away.
Thanks again to everyone for the replies.
I’m in a similar situation Paul, trying to build up my deposit before I go for something. Best of luck to you.
just keep saving for your deposit.. or you could be creative and ask the vendor for finance for the deposit
This too had crossed my mind, Mattsta… After having a chat with Jamie (who was quick to respond and most helpful), I realise I’m really not too far away. But, I would look at something creative like that should the right opportunity present itself.
I have also looked into this in the past and you can secure 97% finance but that is with a 5% deposit. The 2% covers LMI (lender's mortgage insurance) and it is very difficult to get around this. Keep slogging away and keep saving up your deposit so you can buy that house.
Only 2% to go!!!!!
Ryan McLean
How To Save For A House FastRyan McLean | On Property
http://onproperty.com.au
Email MePaul,
Also keep in mind depending on the amount of the purchase, you need to allow for stamp duty and other related costs such as conveyancing, building insurance, etc. FHOG can be offset against it, but it still needs to be accounted for.
ryan mclean wrote:I have also looked into this in the past and you can secure 97% finance but that is with a 5% deposit. The 2% covers LMI (lender's mortgage insurance) and it is very difficult to get around this. Keep slogging away and keep saving up your deposit so you can buy that house.Only 2% to go!!!!!
Ryan McLean
How To Save For A House FastThere's still some lenders that allow for uncapped LMI – so the LVR will be 95% plus whatever the LMI premium is….effectively going past 97%
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
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