Myth: I must contribute a 20% deposit to be eligible for a housing loan
In Today’s housing market, it can be really tough to save a 20% deposit for a home.
But- we have good news! You may still be able to afford it, even if you haven’t got significant savings!
For owner occupied, not investment properties, many lenders will let you borrow up to 95% of your property value. So, if you’ve got a budget of say $500,000 instead of trying to save a 20% deposit of $100,000… you can aim for a more affordable 5% deposit of $25,000. Some lenders will even allow you to borrow 95% plus the Lenders mortgage insurance (LMI) fee.
In some circumstances, you can get a loan with no deposit, but this is only if you have a guarantor or equity within an existing property.
If you’ve got any questions, please do not hesitate to give Fiona a call on 0412411823!
Disclaimer: Your full financial needs and requirements need to be assessed prior to any offer or acceptance of a loan product.