Does any one know of ways to get a loan with no deposit ?
Looking to buy that all important first property but do not have any savings as yet.
Cheers
RyanThere are now many 100% lend products out there. Especially if you are eligible for the FHOG.
other ways include borrowing the deposit and vendor financing (whereby the vendor will lend you the deposit). Be wary you don’t overcommit if you do this.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Incorect St George are not the only lender who will advance 100% without true savings….look a bit harder…there are other lenders doing 100% or >100% loans.
Correct
There are a few non-conforming lenders and mortage origination companies (such as ourselves) who offer 100% finance now.
As these loans will require LMI, it will be the mortgage insurers who look very closely at each application, and impose pretty strict conditions.
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Just getting myself off the ‘Nelson’ (David Shepherd hopping on one leg).
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Not all 100% loans require LMI, however anybody who lends you 100% will (and should) look closely at your application …would you really want them to lend you the money if you can’t afford it??? (think UCC wording as well)
You are the mortgage expert but you don’t know the name of the lender who lends more than 100%???
They are not a private lender and they are not liberty.
They advertise on radio in Sydney, Melbourne and Brisbane everyday…I’m suprised you have not heard the ads.
Nat R,
Do you want to enlighten us all? There are some smaller boutique lenders (or non-conforming lenders) I guess you could call them, that do 100% finance plus costs, but from what I have heard you have to be on a high income and stable employment history to get it.
I have to agree with Rob, out of your mainstream banks and non-bank lenders, which most mortgage brokers have on their panel, St George are the only ones who will lend 100% without any genuine savings.
Geronomio – of the two Mortgage Insurers – PMI & GE, can you enlighten me as to which make ANY exception to the rule of 3% genuine savings??? No 100% finance (if it REAL 100% finance) can be mortgage insured – as these mortgage insurers require 3% genuine savings plus costs. So the maximum deal is 97%…
Beware not to fall into the trap that some lenders seem to make by saying 100% finance when they mean 97% finance… you have to have 3% of the purchase price as genuine savings (saved over a period of 6 months in a bank account) then costs for duty charges, conveyancing and other misc…
Is everybody clear?
Liz Wilson
Mortgage Lender
Hi Rob,
Yeah thats right, they may capitalize LMI but some places charge another 20% on the premium for this. Otherwise they may capitalize to a max deal of 97% inclusive of the LMI fee… meaning its really 96.5% finance.
St George may be the way to go for some people.. but if you have the gen savings, depending on the size of the loan, you may want to save money on your interest rate as compared with St George… case by case though ey?
Liz Wilson
Mortgage Lender
I don’t do many 100% loans, but what about Pepper Home Loans. they do 100% – without genuine savings (I think).
And then there is The Home Loan Company which is advertising a bit too.
both of the above are mortgage insured.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Any lender advancing 100% or more will expect a pretty good employemnt and income position…keep in mind they are looking more at the strength of the actual borrower, whereas many banks and sub prime lenders who are really lending aginst the asset (being the property) with a slight regard to the individual and thier creditworthiness.
Check out this link:
http://www.mortgageworldaustralia.com.au/no_deposit_home_loans.htm
It says there are 4 100% loan providers, but doesn’t name them. [thumbsdownanim Presumably, Bluestone and Pepper are two of these. Someone else might be able to name them?
Dexter, if you’re still about *poke*, my recommendation would be to get some money together before you borrow. Remember, ya still have to pay it back!!
kay henry
That list is not extensive and there are others not mentioned.
Yep, what I posted was just info from a company. Thought it might be a bit of a break for the author though, while the Mortgage brokers squabbled :+P At least there’s info on what’s provided there.
kay henry
A few points:
They are not a private lender !!!
They are not funded by a master buider…they are owned by a building firm, which is a differnt thing!!! (trust me on this)
They are strict on borrower profile and employment type (PAYG only)They also advertise on the front page of the Saturday Domain section, I’m suprised more people have not heard of them.
Hi All,
I’m confused! The home loan company’s website says it does 100% finance provided you pay for stamp duty, legals and LMI… BUT they then quote St Georges interest rate and say I have to pay LMI?? But ST George don’t charge LMI. Non conforming lenders insure there own deals and have fees that are NOT LMI.
I think there are alot of confused people out there. Even the brokers are confused…
3% GENUINE SAVINGS FOR ALL LENDERS MORTGAGE INSURED DEALS – CAN ANYONE PROVIDE EVIDENCE TO THE CONTRARY? (NOT including 9010 deals)
Yes there are non-conforming lenders offering 100% finance – they are great in this day and age… but don’t be fooled by lenders claiming 100% finance that is really 97% finance or less???
Also heres a good quote from an un-named “originator” (BROKER) “we don’t charge fees, but if you go to a broker they will charge you fees…” –
SORRY NOT TRUE…[grrr]
Furthermore, what is the difference between a broker and an originator – your comparing apples with apples… we are one and the same.
Liz Wilson
Mortgage Lender
LMI is a generic term….StGeorge have ther own insurance compnay so they charge a fee to insure interantally
There are many differnces between a broker and an originator…but many people miss use the originator label.
Originally posted by Nat R:There are many differnces between a broker and an originator…but many people miss use the originator label.
Nat I think you’ll find that “mortgage originator” is the pretty word for broker. [blush2]
Liz Wilson
Mortgage Lender
Originally posted by Nat R:LMI is a generic term….StGeorge have ther own insurance compnay so they charge a fee to insure interantally
Incidently, St George call their “LMI”, as you say, a “Loan Extension Fee”… Sorry Nat, it just doesn’t gel with me to use terms loosely or generically. If you were to call something LMI might you be misleading people that they could ever claim any back should they refinance?
I don’t think St George could call it LMI either, as it is a fee… that may have something to do with full disclosure of fee requirements (UCCC)… but don’t quote me on that.
Liz Wilson
Mortgage Lender
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