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Westpac shrinks minimum home loans deposit
The Australian 07/02/05Westpac Banking Corp will allow borrowers to capitalise the cost of mortgage insurance in the loan, rather than have to come up with this bank fee in addition to their deposit. This means the bank will effectively increase its maximum loan to valuation ratio on new home loans to 97 per cent from 95 per cent. Borrowers must still demonstrate “genuine savings” of at least five per cent of the value of the property. The revised approach does not apply to low doc loans.
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As I understand, ANZ already does this. I’m not sure about any of the other major banks, however.
Age doesn’t negate effort – you can never be too young or too old.
Colonial do this also.
Yes, there are many lenders that do this. Westpac is just the most recent lender to offer this (policy changed last week). 97% LVR up to a maximum loan amount of $500,000.
Cheers
Stu
so explain this to a dummy guys, if can save 5% of what my house is worth and the back see’s this they will lend me 97% of the house’s value?
A guy on his horse rides into town on friday, three days later he leaves on friday, how can that be?
mr vip
whats being discussed is…
with a 5% deposit, genuine savings, the bank will now allow you to capitalise (add too the 95% loan) the cost of mortgage insurance – that is, to a maximum overall % of 97%.
what does this mean, it means you don’t have to pay the MI upfront, you pay for it in the loan.
westpac have just come on board with this policy – which may be new for them, but old news for lots and lots of other lenders (sort of a shame they missed the property boom with that one, oh well…)
cheers
brahms
CALL NOW…adults only (boys and girls ask mummy or dad first) ~~ 1900 hot broker ~~Mr VIP. You will also need money for closing costs – about 5% of PP.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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