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David Chi

10 months ago

Harry, you can reduce or avoid paying mortgage insurance by seeking a family guarantee. This means that you don't need to wait for 3 months genuine savings.

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David Chi

10 months ago

Harry, try avoiding paying mortgage insurance by seeking a family guarantee. If you would like to find out more strategies to avoid or reduce mortgage insurance please do not hesitate to contact me.

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Steve

10 months ago

Hi Harry, You need to meet the lenders criteria across a number of areas - 5% genuine savings held in an Australian bank account for 3 months, income sufficient to service the debt, funds to complete at settlement & some funds to cover costs. We would also need to look at your current debts as these impact your borrowing capacity. Call me if you would like to chat - regards Steve

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David

10 months ago

Hi Harry. As outlined by my colleagues, the answer is a little more involved than you would first think. I recommend making a time to have a chat with a HashChing broker who will be able to properly fill you in with everything you need to be aware of. Good luck!

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Bernie

10 months ago

Hi Harry, for a short question the answer is a little complicated. There are options for getting a loan with 5% plus costs including Lenders Mortgage Insurance. Every lender has a different policy but generally if you have the 5% in your bank account for 3 months there are options. If the funds have come from a gift, tax refund etc, as long as you have been renting through an agent for more than 6 months, this could work with some other lenders. There are other options available as well. Happy to have a chat with you to discuss further.

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Alex

10 months ago

Hi Harry, thanks for your question. Whilst it is technically possible to get a loan with a 5% deposit, there are other requirements that need to be met, such as genuine savings, property location, income, expenses and liabilities. And you'll need to also come up with the costs, such as stamp duty, legals, bank fees, mortgage fee etc. As Peter mentioned, most banks need to see genuine savings which means 5% saved or held in an account for at least 3 months, but there are some lenders who can waive this based on rental history, or a higher LMI premium. It's really best to sit down with an experienced broker who can guide you through all this and get a thorough understanding of your situation. Thanks, Alex

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Peter

10 months ago

Hi Harry, Most lenders will want to see a savings pattern over a 3 month period showing a genuine savings pattern. There are a couple of lenders who will take rental history into account instead of a savings pattern, however you still need to be able to show that you have the 5% plus the costs to complete. To get a full understanding of how this works please do not hesitate to contact me by clicking on my profile.

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