The most common type of home loan for first home buyers buying a property is to use a 10% deposit which means the bank is lending you 90% of the value of the property. You will still have to meet normal credit guidelines & serviceability requirements to get your loan approved.
Borrowing a high percentage of the purchase price isn’t easy because lenders are far more conservative when assessing your home loan application.
Come to our info sessions and get pampered with lots of assistance to help you on your journey to purchasing your golden patch in Australia.
Australian lenders consider all home loans over 80% of the purchase price to be a high risk. Because of this they insure these loans with Lenders Mortgage Insurers (LMI).
The LMI providers have their own lending guidelines that are stricter than those used by the banks, and because of this, borrowing 95% is relatively difficult to get an approval compared to other home loans.
This type of mortgage has to go through 2 forms of approvals – firstly by the bank and secondly by the mortgage insurer. This is a difficult home loan to get approved because the bank credit policies are very strict with regards to a lot of criteria including genuine savings and non genuine savings.
If you are thinking of getting this type of mortgage, then it is very wise to seek help from someone who is very experienced in this type of home loan. I have seen cases when applicants have been told that they have a pre approval for a home loan and they have signed a contract of sale only to find that their home loan has been declined by the mortgage insurer.
Trusted Mortgage Broker has many years of experience and we are qualified to assess your financial situation and offer you credit advice in order to establish if you are able to get a home loan approval. This is a very difficult loan to get over the line so you definitely need a very experienced broker to help and guide you.
Come to our info sessions and get pampered with lots of assistance to help you on your journey to purchasing your golden patch in Australia.
Trusted Mortgage Broker has a great range of mortgage calculators to help with all those tough decisions that come with finding the right loan. Have a look at our calculators on our website to help you further.
Specialist mortgage broker Sue will guide you to find a solution to purchase a property Excited? You should be Come and find out how Sue helped others who never thought they would own a property
