Organising a Deposit
Making It All Happen
The more you can put towards a deposit,
the less you’ll need to borrow and the more you’ll
save in interest over the years. Generally you will need a
minimum of 5% deposit. To avoid paying Lenders Mortgage Insurance
(LMI), you will need at least 20%. There are some loan products
now available where the cost of LMI is conditionally waived.
Deposit bonds
are a good alternative to using cash or finding short term
finance. They are quick to organise and economical compared
to the cost of short-term finance. A deposit bond is a guarantee
or bond that substitutes for a cash deposit of up to 10%.
The guarantee terminates at settlement when the purchaser
pays the full purchase price of the property, or when the
contract is terminated, or at the expiry date of the bond.
If you don’t have a deposit there are options available
to help you in financing your new home.
- 100%
or No Deposit home loan - you can borrow the
full amount of the property value of the home you want to
buy.
- Family equity guarantee
- typically parents assist their children to raise a deposit
by either using the equity in their home to raise a deposit,
or offer the equity in their property to reduce the LVR
to avoid the cost of Lenders
Mortgage Insurance charged on loans greater than 80%.
If you would like to organise a deposit bond or discuss the
options, I am happy to call
you, or simply send me an email
with your enquiry. |
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