Hi All, I am wondering if someone can help me, I want to buy a new place of residence. What I wanted to do was finance 80% through the bank and pay the owners off the remainder over the next couple of years. I have been approved for the loan with around 5 to 8% deposit. I can probably get this a bit higher. Just the mortgage insurance is so high. Is this possible? I was approved for around 614k loan amount with this way it is a loan of around 530k. My broker said no its not done but I have seen it done before. Any help would be greatly appreciated.Corey BattParticipant@cjaysaJoin Date: 2012Post Count: 1,010
In commercial lending yes, residential they don’t like this – especially through mainstream lenders. Non coded lenders may accept it, but these come at higher ongoing costs which will outweigh the LMI.Hank HongParticipant@sid13473134Join Date: 2016Post Count: 13
There are lenders who will accept a personal loan as a deposit, they would need to see that you can pay that loan and the new home loan as well.
I have usually stayed away from this as ideally I would to make sure I am not over extending my client financially, also we would want to see some commitment from the client.
In saying that there is also the family guarnatee loan, where if mom and dad have a property and they have complete trust in you, they can help you fund 100% of the purchase with no Lenders Mortgage Insurance. This is safer for the lenders as they have a guarantee from the parents.
Hope this helps =D
Google Hank Hong he's pretty cool.Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024
Sorry i have to disagree it certainly can be done but you might need a 3rd party ACL holder.
We have spent 2 years working on a new Company called No Deposit Housing Pty Ltd which now provides deposit finance throughout Qld to owner occupiers. We have 7 major lenders signed up for the scheme and have started doing our first few deals.
We charge a higher interest rate than the prime lender but nowhere near a personal loan rate.
Demand in SE Qld has been incredible and we look to launch Nationally within the year.
You are so right gags a couple of enquiries we had this week were from borrowers who had a deposit but wanted to avoid the expensive LMI.
Yours in FinanceHank HongParticipant@sid13473134Join Date: 2016Post Count: 13Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024
At the moment we only lend in Qld where we broker the deal.
In the first week alone we received 36 applications so matter of growing slowly in order to keep up with demand.
Yours in Finance