FHOG as deposit

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neologism
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@neologism
Join Date: 2003
Post Count: 91
September 1, 2003 - 1:41 am
has anyone here used there first home owners grant as a deposit on a house?
do the banks exept this as a deposit say on a $70,000 house
so therecticly all i would need to do is pay the stamp duty, LMI and then the repayments after settlement.
is this a posability and if it is, is it simple to do or a lot of mucking around?
NEO
NICE ONE BRUVA!! Nice One Bruv! nice one
Mortgage Hunter
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@mortgage-hunter
Join Date: 2003
Post Count: 3,781
September 1, 2003 - 2:00 am
Most banks need you to demonstrate a 5% level of genuine savings over a 6 month period.
I do have lenders who will consider the FHOG as deposit though.
You need to see a good broker.
Good Luck,
Simon Macks
Mortgage Hunter
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0425 228 985
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
September 1, 2003 - 4:01 am
There are a few banks now that will accept only 3% genuine savings if the FHOG is used, and one that may do it at 2%. But the location of a $70,000 property may be a problem for mortgage insurance.
Terryw
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Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
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Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
picja1
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@picja1
Join Date: 2003
Post Count: 144
September 1, 2003 - 11:38 am
There is one bank that will accept 5% no genuine savings.
There are a few other lenders who will accept it. You’d probably get away with it in this instance with most lenders, as most lenders have a 10% no genuine savings product.
Also, St George have a 100% loan where all you need is FHOG to cover costs, but is dependant upon location.
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