This is an area of lending that is about to change markedly, and it impacts on how much money you need to buy your first home. (in a good way!!)
This is where we are right now – 95% loans are all about the treatment of Mortgage Insurance. (A one-off premium to protect the lender’s position, approximately 3.5%)
1. Lenders require YOU to pay all of the mortgage insurance (MI) from your money – so their loans are still 95%.
Costs vary from state to state – but let’s look at a $500k purchase in Qld where a first home buyer pays no stamp duty; Costs will then be approx. $2,500 and are inclusive of things like Solicitor, settlement and government fees. (I can explain these all in more detail, for your particular circumstance, if you “Ask Alan”).Read more