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Chris

1 year ago

Hi Daniel I have a few questions for you to clarify. Will your new home be established or are you constructing a new one, and then eligible for the First Home Owners Grant? For your parents to guarantee the deposit for you, the total amount that they can have against their property must be less than 80%, is this the case? (there are other criteria that they must fit to be eligible depending upon the lender) Are you currently renting through an agent, or do you have some other type of living arrangement? Please let me know if you have other questions.

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Steve

1 year ago

Hi Daniel, If you have a guarantor then you don't need a deposit. However, the more savings you have the better as this means a lower loan amount, less interest & less lenders mortgage insurance if you decide to go it alone. Most banks require 5% genuine savings but I usually suggest a min of 6% to cover that plus costs plus ensure capped LMI is under max LVR levels. Also, you need to have good income & low debt levels to meet servicing criteria, employment history needs to be solid and good credit history. Happy to provide all the support & information you need to make informed decisions - kind regards Steve

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shantilal

1 year ago

Hi Daniel, as per your situation there is no problem with the home loan, but the choice of what you want. if you can put 20% Deposit you can save heaps on mortgage insurance plus can have the best deal from the marketplace. results in a lot of savings on interest and fees all the way for 30 years. at $25k plus 50K = $75k available. you are short by $45k which can be supported by parents guarantee. if you are the first home buyer and building the new home or buying a brand new home, you can add FHOG towards deposit as well! Please note there are other factors as well such as your credit history, current employment situation, current debt which may affect your final approval. if you don't use parents property, still you can have the better deal but with the cost of mortgage insurance, we can find the best deal for you with low rates and best features based on your preferences. send us a message through our profile to discuss more at your preferred time. Shanti S

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Vince

1 year ago

There are some good options with guarantors where your current deposit may already be enough to pay the legal costs and stamp duty and you could be in a property sooner than you thought

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Suman

1 year ago

Hi Daniel, Alex has explained it quiet well. If you wanted to go on your own (without guarantor), you will require minimum of 5% deposit that is 30K, plus other purchase cost like solicitor fees and building & pest.

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David

1 year ago

As a rule of thumb the minimum deposit is 10% of the purchase price, in this case $60,000. At the rate you’re saving Daniel I believe you should consider doing without the folks. I am happy to email you a worksheet outlining your proposal and give you an indication of the final repayment if you like. The worksheet is a great place to start when purchasing.

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Alex

1 year ago

Hi Daniel, thanks for your question. The higher the deposit the better, as this will reduce your overall loan, but as you have a guarantor, then technically no deposit is required. We would have to look at your income and liabilities and expenses to make sure you can service the loan, but assuming that looks fine then you can borrow 100% of the purchase price (some lenders will also lend you more than purchase price to cover costs like stamp duty, legals etc). Click through to my profile if you'd like to discuss in more detail. Alex

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