Frequently asked questions
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How much deposit do I require to purchase a property?
The minimum deposit required in order to qualify for a home loan is 5% of the purchase price plus additional funds for purchase costs such as stamp duty, government registration fees, government transfer fees, conveyancing fees etc. If you have a relative that owns a property and his happy to act as your guarantor it may be possible to qualify for a home without a deposit.
Can I borrow 100% of the purchase price of a property?
It is possible to borrow 100% of the purchase price of a property but only if you have a relative who owns a property and is happy to act as your guarantor. You may even be able to borrow 100% plus purchase costs. There is even a lender that may lend up to another $50,000 for renovations.
Without a guarantor the maximum that can be borrowed is 95% of the purchase price plus the entire mortgage insurance premium. This often totals 99% of the purchase price.
I have defaults on my credit report. Is it possible to obtain a home loan?
You can still qualify for a home loan even if you have defaults on your credit report. If you have just one small default with a telephone or utilities provider it may be possible to still borrow up to 95% of the purchase price. The higher the number of defaults and the amount of the defaults the more deposit that will be required by lenders.
My deposit is a gift from my parents. Can I obtain a home loan without genuine savings?
Yes, we have lenders that will consider lending up to 95% of the purchase price without genuine savings. Each lender has different policies regarding genuine savings. If you have a 20% deposit then almost all lenders won’t require evidence of genuine savings. If you have less than a 20% deposit that is the proceeds of a gift there are still a number of lenders that may be able to assist.
I am self-employed under a company structure. What documentation to I require to obtain a home loan?
To obtain a standard home loan the minimum requirement is the most recent personal and company tax return, company financial statements and ATO Assessment Notice. Most lenders require these documents for the last 2 years but we have some lenders that will accept just the most recent year.
If these documents are unavailable the alternative option is a low doc or alt doc loan where documents such as Business Activity Statements, 6 months business bank statements and/or a signed accountants declaration may be accepted.
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