Some non traditional enders will lend up to 106% LVR, most no deposit loans only up to 100%.

Be aware however, the costs for LMI to borrow this much. The lender may charge you up to 3.5% (most likely >2%) premium to protect themselves aganist the risk of lending you this amount.

So on a $400K property, you’re looking at $14000.

In, addition, No deposit loans usually have higher interest rates (up to 9%) as well as early repayment fees like 1.5% in repaid in first 3 years.

Your better off:

1) Saving a deposit of at least 5% in order to avoid such high premiums. n.b. LMI will always apply for LVR >80% but as the LVR rises so does the premium % rate especially over 95%.

2) Take a family pledge loan offered by St George Bank & CBA.This allows you to have an immediate family member as guarantor for the 20% deposit and will allow you to avoid LMI. Obviously, there needs to be enough equity in your familt members property. n.b. st george prod allows you to drop guarantor if you build enough equiry or wish to pay LMI in future, CBA product does not.

3) Cross-collateralising with another property in you name.

It sounds like you may have no initial outlay and need $ to pay for stamp duty and legal costs. In which case you will have to assess the risk of whether you will receive a return, when etc. considering the extra costs you will be up for.

It is very risky, but if you are confident that you will receive good capital gains over time and you can afford repayments or positvely geared than it might still be worth it with all the extra money you will pay.

Curious- where you looking at purchasing?

Good luck. Happy Hunting!!![cowboy2]