Minimum Deposit Required

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Brizza
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@brizza
Join Date: 2003
Post Count: 75
February 15, 2015 - 6:04 pm
What type of minimum deposit is required now for a loan?
I remember a few years ago, there were 0% deposit home loans.
A couple of examples:
1) On an existing dwelling for $450,000, what type of deposit would be required?
2) For a newly constructed dwelling with land for $500,000 (making me eligible for FHOG & no stamp duty), could you use the $15,000 FHOG as a deposit?
Corey Batt
Participant
@cjaysa
Join Date: 2012
Post Count: 1,010
February 16, 2015 - 12:05 pm
Generally 5% deposit is the absolute minimum deposit, but this does depend on the lender being used. You also need to be able to pay for the ancillary costs which include stamp duty, solicitors fee’s etc. LMI will be applicable (and will certainly be expensive) but this can be capitalised onto the loans in most cases.
FHOG can be counted towards the deposit, however you will still need to show the lender 5% GENUINE savings – this can be gotten around in some cases too.
TL;DR – depends on your specific circumstances, but 5% deposit + costs at an absolute minimum.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
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Investment Focused Finance Strategist - servicing Australia-wide
Brizza
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@brizza
Join Date: 2003
Post Count: 75
February 16, 2015 - 1:30 pm
Thanks for the reply.
So the days of 97% LVR and 100% LVR are over?
Corey Batt
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@cjaysa
Join Date: 2012
Post Count: 1,010
February 16, 2015 - 2:20 pm
95%+LMI (most lenders 2% LMI capping to 97%, though you can go to 99.9% with a couple lenders) is the maximum. The only other ways to get around this are through family guarantees where you can get away with $0 deposit.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone Me
Investment Focused Finance Strategist - servicing Australia-wide
Brizza
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@brizza
Join Date: 2003
Post Count: 75
February 16, 2015 - 5:08 pm
Thanks for the answer.
So more specifically, $70k per year salary, $30k in inheritance which I would like to use as a deposit. Is there borrowing capacity and if so, how much?
Richard Taylor
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@qlds007
Join Date: 2003
Post Count: 12,024
February 16, 2015 - 10:41 pm
Hi Brizza
Bit more information needed to make the assessment accurate.
Single / married / credit card / Personal loan / How long has inheritance been in your Bank A/c etc etc.
For a gifted deposit then in the main you are going to be limited to 90% + LMI although couple of lenders who might still do 95%.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Brizza
Participant
@brizza
Join Date: 2003
Post Count: 75
February 16, 2015 - 10:53 pm
A bit more information provided:
Single.
No credit cards.
No personal loans.
Inheritance been in bank for over 3 months.
No dependents.
- This reply was modified 9 years, 2 months ago by Brizza.
Richard Taylor
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@qlds007
Join Date: 2003
Post Count: 12,024
February 18, 2015 - 7:21 pm
That certainly helps and on that basis 95% of 450K appears possible.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Brizza
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@brizza
Join Date: 2003
Post Count: 75
February 18, 2015 - 8:22 pm
Richard Taylor wrote:
That certainly helps and on that basis 95% of 450K appears possible.
Cheers
Yours in Finance
Would that be on the basis of constructing a dwelling and utilising the FHOG and stamp duty exemption, as if I purchased an existing dwelling, most of my 30k would be taken up by stamp duty and taking me out of the 95%LVR.