Low Deposit Loans
The common perception from people is that in order to buy a property, a 10% deposit is required. Whilst this is a desirable position to be in, it doesn't have to necessarily be the case.
A number of lending institutions will lend up to 95% of the value of the property or house and land package. These loans are always subjected to Lender's Mortgage Insurance (LMI), as they are deemed a higher risk. However, LMI can often be capitalised into the loan, meaning the purchaser doesn't have to find this cost up front and instead can spread the cost of LMI over the course of the loan. Mortgage Insurance premiums vary from lender to lender and also by what's called an LVR (Loan to Value Ratio). The closer the LVR to 80%, the lower the LMI premium will be.
If you're currently planning on purchasing your first home and are unsure about the deposit you can save, contact The Finance Architect by phone or email , and we will talk you through the process in an easy-to-understand manner.
Alternatively, fill out our Loan Serviceability Check for an accurate depiction of what your borrowing capacity is and we'll get back to you!
A number of lending institutions will lend up to 95% of the value of the property or house and land package. These loans are always subjected to Lender's Mortgage Insurance (LMI), as they are deemed a higher risk. However, LMI can often be capitalised into the loan, meaning the purchaser doesn't have to find this cost up front and instead can spread the cost of LMI over the course of the loan. Mortgage Insurance premiums vary from lender to lender and also by what's called an LVR (Loan to Value Ratio). The closer the LVR to 80%, the lower the LMI premium will be.
If you're currently planning on purchasing your first home and are unsure about the deposit you can save, contact The Finance Architect by phone or email , and we will talk you through the process in an easy-to-understand manner.
Alternatively, fill out our Loan Serviceability Check for an accurate depiction of what your borrowing capacity is and we'll get back to you!