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85% Home Loan

Many home buyers and investors have saved a significant deposit or have received help from their parents. If you are in this position then you may qualify for an 85% home loan. Many of our customers who originally contacted us for a 90% home loan were able to increase their deposit size by a little to enable them to qualify for a better discount.

Unlike for 90% or 95% Home loans, the qualifying criteria is less strict and the LMI – Lenders Mortgage Insurance is significantly cheaper.

1) Will I have to pay LMI (Lenders Mortgage Insurance)?
2) Do I qualify for a 85% mortgage?
3) Will I need ‘Genuine Savings’ for a 85% loan?
4) How should I compare lenders/bank’s rates for 85% loans?
5) How much deposit or total funds do I need?

90% Home Loan

Many first home buyers and many investors need to borrow 90% of the purchase price. Lenders are less conservative with a 90% home loan than a 95% because there is more equity in the property. You will still have to meet normal credit guidelines and serviceability requirements to get your loan approved and the criteria a certainly stricter than when applying for a standard 80% home loan.
1) Why do many banks offer 90% but NO 95% home loans?
2) Do I qualify for a 90% home loan?
3) What are ‘Genuine’ or ‘Non-Genuine Savings'?
4) Can I get a 90% home loan for more than $1 million dollars?

95% Home Loan

No deposit home loans (zero % home loans) are no longer available in Australia. However, a range of lenders still offer loans for 95% of the purchase price, also known as a 95% LVR loan.
1) Do I qualify for a 95% Home loan?
2) How much deposit and total funds will I need for a 95% mortgage?
3) Can I borrow more than 95%?
4) How many lenders offer 95% Home Loans?
Did you know that most lenders will only approve a 95% mortgage up to $700,000 or $800,000?

First Home Buyers Loans

The Federal Government’s First –Home- Owners Grant, various other government subsidies make it possible for first time buyers to purchase a home.
1) Can I use the First-Home-Owners Grant as my deposit?
2) How much is the ‘First-Home-Owners’ Grant?
Are there other benefits for ‘First-Home Owners?
3) What costs are associated with buying a home?
4) How can my parents help?

Guarantor Loans And Mortgages

Guarantor loans are now the only way to borrow 100% of the purchase price as traditional no deposit home loans have been withdrawn from the market. There are significant differences between different lenders and their guarantor loans With the help of a guarantor you can borrow over 100% of the purchase price. This will allow you to buy a home and also pay for purchasing costs such as stamp duty at the same time.
1) What are the benefits of a ‘Guarantor Loan’?
2) How much of the property value can I borrow?
3) How do ‘Guarantor Loans’ work?
4) Who can be a ‘Guarantor’?
5) What happens if my parents already have a home loan?
6) How do lenders work out if your guarantor has enough equity in their own property?
7) Will the interest rate be higher?
8) Why is everyone using a ‘Guarantor Loan’?

No Deposit Home Loans

A no deposit loan will allow you to borrow up to 100% of the purchase price. The days of borrowing 100% of the purchase price without any proof of savings are gone. Unfortunately, due to the global financial crisis, there are no lenders able to fund these types of loans.

However, you can still get approved for a 100% loan if you get a little creative or if you have help from your parents There are six main ways to secure a home loan without a deposit of your own.

Idea 1 - No deposit Home loan 105% Guarantor Loan
Idea 2 - No deposit Home Loan: A Gifted deposit
Idea 3 - No deposit Home Loan- use a Personal Loan as deposit
Idea 4 - No deposit Home Loan- use Equity from another property
Idea 5 – No deposit Home Loan- Use your Superannuation
Idea 6 – No deposit Home Loan – Vendor Finance

No Deposit Construction Loan

1) Can I get a 100% loan for House and Land packages?
2) Are Guarantor 100% Construction Home Loans available?
3) Can I get a 100% Loan for land?
4) Can I get a No Deposit Home Loan for renovations?
5) Can I build townhouses or do a small development with a No Deposit Home Loan?
6) How does the bank pay the builder?
7) What documents do I need to provide for a No-Deposit construction loan?
8) Can I get a 100% loan if I’m an Owner Builder’?

No Deposit Investment Loan

It is possible to buy an investment property without a deposit. However, this is not as straightforward as it was before the Global Financial Crisis and lending criteria are stricter. There are no longer any lenders in Australia offering No Deposit Loans. You can still borrow 100% with either a ‘Guarantor Loan’ or by using equity from another property you already own.
1) What are the benefits of using a ‘Guarantor 100% Investment Home Loan’?
2) Why can I get a 100% Investor home loan when I have a guarantor?
3) Do I qualify for a 100% ‘Guarantor Investment Loan?

No Deposit LMI (Lenders Mortgage Insurance)

1) What is LMI?
2) Which banks/lenders charge LMI, their own insurance or ‘risk fees?'
3)How much will LMI cost me?
4) Examples of LMI premium calculations
5)How can I find out how much LMI my bank will charge me for my loan?

 

No Genuine Savings Loans

The majority of Australian lenders require you to prove that you have saved a 5% deposit before they will approve your home loan. If your deposit is a gift from your family, comes from the sale of an asset, a bonus from work, has been borrowed or comes from some other source that banks do not consider to be regular savings, then you can get what is known as a “non genuine savings” loan.

Borrowing 100% of the purchase price with no deposit is only available if you have a guarantor  that can support your application. 100% home loans without a guarantor are no longer available from any lender in Australia. People that have a 5% or 10% deposit however cannot prove to a lender that they have saved this deposit themselves with regular contributions to a savings account. can apply for a No-Genuine Savings loan In most cases our customers’ parents have helped them by lending them the deposit or giving them a gift as the deposit.

1) How much can I borrow with a Non-Genuine Savings Home loan?
2) Do banks accept a ‘gift’ as my deposit?
Is the money for my deposit considered ‘Genuine’or ‘Non-Genuine Savings’?
4) Can I get a 95%Non-Genuine Savings Home Loan?
5) Will the LMI premium be capitalized?
6) If I keep a ‘Gift” in my account for a few months, will this money become ‘Genuine Savings’?

Personal Loan As A Deposit

Yes, it is possible to use a personal loan as part of your deposit to buy a home.

Of course it is always better to save a deposit of your own, however if you can afford the repayments of both loans and you want to buy now, some lenders will allow you to use a personal loan as a deposit to get into the market. Most lenders do not offer home loans if you have a borrowed deposit due to their genuine savings policy., although there are a few lender that will consider your application.

1) Do I qualify for a ‘Personal Loan as Deposit’ Home Loan?
2) How much of the property value can I borrow?
3) Will I still need to show that I have some savings?
4) How does a deposit from a‘Personal Loan’ Home Loan work?
5) How much will the extra Personal Loan cost?

Using my Superannuation as a Deposit

This method is available for investment loans and is popular with retirees, however  the government is also considering allowing first home buyers to access their superannuation to use as a deposit on their first home.
1) Will I still need some other savings besides money from my super?
2) How much can I withdraw from my super?
3) Will there be any additional costs?
4) Will I have to repay my Super Fund?
5) Will the repayments to my Super Fund affect my borrowing power?
6) Is ‘Using my Super as a deposit the same as a SMSF Home Loan?

Vendor Finance Home Purchase

1) What is vendor finance?
2) What are the benefits of Vendor Finance’?
3) Who uses Vendor Finance?
4) Do I qualify for Vendor Finance?
5)What are the different types of Vendor Finance?
6) What costs are involved in vendor finance?
7) Is the First Home Buyer’s Grant available?
8) When can I re-finance to a bank/lender?
9) Do I need legal advice?
10) Are there any drawbacks with Vendor Finance?
11) How can I get Vendor Finance?