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First Home Buyer Tools
Home Loan Options
A lot of first home buyers don't fit into the
'box' that many banks expect them to be in. Most lenders will require
you to have saved at least 5% of the purchase price over a period
of at least 6 months. In many cases we can help borrowers who do
not fit into this 'box'. If you fit into one of the following categories
we may be able to help. If you have any questions about any of the
products mentioned please submit your question using our contact
us page or call us on 1300 66 12 11. If you would like a free,
no obligation assessment of your loan options please apply
online.
You have at least a 5% deposit saved over 6 months
+ have funds for costs
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You have at least 5%
of the purchase price saved over a period of at least 6 months
AND you have other funds available for costs (First Home Owners
Grant can be used to pay for costs)
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| If you are in this situation you should have
access to the majority of loans available in today's home loan
market. Most lenders will lend you up to 95% of a property's
purchase price as long as you satisfy their credit and serviceability
criteria. In some cases you may be able to borrow up to $1 million
dollars using a 95% home loan. Some lenders will also allow
you to add the mortgage insurance premium to the loan, effectively
giving the loan a 97% Loan to Valuation Ratio. If you have more
than a 5% deposit it is generally easier to qualify for a loan.
Any loan which is greater than 80% of the purchase price usually
involves Mortgage Insurance and as such a one off mortgage insurance
premium will need to be paid. Please call 1300 66 12 11 for
more information or apply
online for a free, no obligation assessment of your situation.
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You have at least 20%
of the purchase price available as a deposit AND you have
other funds available for costs
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| Generally, if you have a 20% deposit, most
lenders will not want evidence that at least 5% has been saved
over a period of 6 months or more. As such you would have access
to most loans on the market assuming you pass the lenders' credit
and serviceability criteria. Also you would not need to pay
a mortgage insurance premium, which could save you thousands
of dollars. Please call 1300 66 12 11 for more information or
apply
online for a free, no obligation assessment of your situation. |
You have at least a 5% deposit saved over less than
6 months + have funds for costs
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You have at least 5%
of the purchase price saved over a period of at least 3 months
AND you have other funds available for costs (First Home Owners
Grant can be used to pay for costs)
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| We have access to lenders who will ask for
proof of 5% savings over 3 months instead of the normal 6 months.
They will lend you up to 95% of the purchase price of an owner
occupied property and will even add the mortgage insurance premium
to the loan to bring it up to 97% of the purchase price. The
rates offered by these lenders are some of the most competitive
on the market. Please call 1300 66 12 11 for more information
or apply
online for a free, no obligation assessment of your situation. |
You have no genuine savings
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You have no genuine
savings but have a good steady income
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There are a number of lenders who now offer no deposit home
loans that don't require borrowers to have any genuine savings.
For more information on these particular loans please visit
our 100%
home loans page or call 1300 66 12 11 for more information.
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You have no genuine
savings but are being given a non repayable gift from a relative
or friend or you have attained a deposit from sources other
than a loan
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| If the gift is sufficient to make up 5% of
the property price, you may be able to use a 95/5 home loan
for this situation, where the 5% deposit does not have to be
saved. Usually, if you borrow more than 80% of the property
value you will be required to prove that you have saved 5% over
a period of 6 months or more. In the case of a 95/5 loan you
can borrow up to 95% of the property price without any genuine
savings and at competitive home loan rates. The maximum loan
amount using this type of loan is generally $1,000,000 per property.
You will also need additional funds to pay for costs such as
stamp duty. If you are a first home buyer the $7,000 First Home
Owners Grant may be enough to cover the costs. Please call 1300
66 12 11 for more information or apply
online for a free, no obligation assessment of your situation.
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You have no genuine
savings but have a relative with significant equity in a property
and is willing to act as a guarantor
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| There are a number of lenders on our panel
who offer family equity type home loans. Some of these lenders
do not require you to have any genuine savings and will even
lend you extra funds to pay for the purchase costs, such as
stamp duty. The interest rates on these products are very competitive.
All you need is a relative who owns a property with equity in
it and is willing to act as a guarantor. It is also possible
to limit the guarantee so your relative is not a guarantor for
your entire home loan, but for only a small portion of it. Once
you build up enough equity in your property the guarantor can
then apply to have their guarantee removed. Please call 1300
66 12 11 for more information or apply
online for a free, no obligation assessment of your situation.
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You have limited genuine savings
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You DON'T have a deposit
of 5% saved over a period of 6 months but you DO have 3% saved
over 6 months
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If you are in this situation we have 2 different
products that may suit you. They are:
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100% Home Loan
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97% Home Loan
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We have access to a lender who will
lend 100% of the value of the property at normal home
loan rates. This loan has a number of conditions that
must be met. They are:
· You must have at least 3% genuine savings saved
over a period of at least 6 months
· The property must be owner occupied
· The property must be your only real estate
property
· If the property is a unit it must have at least
2 bedrooms and must be in a complex less than 4 stories
high and containing 30 or less units
· Loans of up to $500,000 permitted in metropolitan
areas of all mainland states and territories
· Loans of up to $350,000 permitted in Metropolitan
areas of Tasmania and major regional areas on the mainland
· You must not have applied for more than 5 loans
or credit facilities over the last 12 months
· You must have a clear credit history
Other conditions also apply. Please
call us on 1300 66 12 11 for more information.
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You can lend up to 97% of the property
value from a number of lenders on our panel. In the
Sydney and Melbourne metropolitan areas you can lend
up to $500,000 and up to $350,000 in most other major
areas of Australia. You must have saved at least 3%
of the purchase price over a period of 6 months.
Other conditions also apply. Please
call us on 1300 66 12 11 for more information or apply
online for a free, no obligation assessment of your
situation.
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For more no deposit home loan options please
visit our 100%
Home Loans page.
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You have defaults on your credit report or are even
a discharged bankrupt
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You are a PAYG employee
or self employed with tax returns and have defaults on your
credit record or are bankrupt
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| There are a number of 'non-conforming' lenders
that have entered the market in the last few years. These are
lenders that will lend to credit impaired applicants, but at
a higher interest rate. Assuming you are a PAYG employee or
self employed and can fully verify your income you may still
be able to borrow 95% of the purchase price even if you have
defaults listed against your name. If your credit problems are
serious and you have numerous defaults (unlimited number of
defaults) or are even a discharged bankrupt you may still be
able to borrow up to 90% of a property price. For more details
please call us on 1300 66 12 11 or apply
online for a free, no obligation assessment of your situation. |
You are self employed
Please visit our self
employed home loans page for more information on self employed
loan options.
Disclaimer:
* Loans are approved or declined on their merits by the specified
lender and a loan approval is not guaranteed.
* We believe the information on this page to be correct. However
we can give no warranty to this effect and we expressly disclaim
any liability for loss or damage by any person acting upon advice
contained on this page.
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