Guest julieportsmouth Posted September 15, 2009 Share Posted September 15, 2009 Hi all, We are busy saving like mad since we arrived here in May to get up a deposit for our own place - although with stamp duty and all the other costs involved with buying and paying rent as well its a slow process. Like most people who are selling in the Uk we have just had to let any equity we had go to get a sale on our house. With the costs of shipping and setting up again it doesn't leave us with a deposit. We wondered if anyone know of its possible to get a 100% mortgage or close to it as we hate the fact that we are looking at another year of paying rent and trying to save when we could be paying our own mortgage! We are looking to buy new and take advantage of the first time buyers grants and new build grant but we are not sure if that will count towards a deposit? Any advice or tips would be great! My hubby has a pretty good salary (near to 100k) and is hopeful of getting a bit more than that pretty soon as he is job hunting like a demon! thanks Julie Link to comment Share on other sites More sharing options...
The Bray Family Posted September 15, 2009 Share Posted September 15, 2009 We needed to put down 20% deposit the banks are not giving money away these days.We struggled because hubby is a contractor. Sarah Link to comment Share on other sites More sharing options...
The Bray Family Posted September 15, 2009 Share Posted September 15, 2009 i just noticed your from portsmouth we are from there too. We use to live in Bedhampton small world lol Link to comment Share on other sites More sharing options...
Guest proud2beaussie Posted September 15, 2009 Share Posted September 15, 2009 There are banks and mortgage companies that will lend 100% of the valuation and yes there is no reason why you couldn't use the FHBG as the deposit but I would be very cautious about what you get yourself in for,as the economy slowly starts to improve over the next few years the interest rate will also rise and you need to factor in that possibility when making a decision to buy. I certainly don't want to try and discourage you in any way but I would hate to think that you could end up having trouble making the repayments. Check out sites like RAMS Home Loans - Rate Relief with 0.9 percent off Mortgage Broking Services | Aussie Home Loans and any of the big banks. Good Luck with it. Link to comment Share on other sites More sharing options...
Guest kdal Posted September 15, 2009 Share Posted September 15, 2009 Hi, I was under the impression that the FTHG could no longer be used as the deposit for the property. As Nigel says be very careful as back in the early 90's recession in the UK our mortgage went from something like £650.00 to £1200.00 massive increase and lots of people lost their properties - very sad. Pretty bad timing with alot of us with UK economy not being so good whilst the Australian economy appears to be strengthening. Good Luck hope all goes well Link to comment Share on other sites More sharing options...
Guest proud2beaussie Posted September 15, 2009 Share Posted September 15, 2009 kdal may be right about the FHBG thing,I have a friend who was able to use it as a deposit but that was about 18 months ago and it may have changed since then,best to check it out with one of the companies listed in the links or even just ring a real estate agent and ask. Link to comment Share on other sites More sharing options...
twinsmom65 Posted September 15, 2009 Share Posted September 15, 2009 There are practically no banks now offering 100% loans. Rams was at one point, but earlier this year took away that option and offered a minimum of 3% deposit, they now have increased that to 5%. Also the FHOG can't be used towards the 5% and the 5% must be genuine savings and in an account for a period of 3 months. The only other lender I know is Keystart here in WA who allow 4% down, with 2% geniune savings however they have a srict criteria with lending, i.e maxium house value is $412k and you must earn under a certain amount ($120k family income). This is a state run programe. I am not sure if QLD has a similar programe. Good luck with the house hunting, I know how frustrating it can be when you come here with no equity and are trying to save like crazy. I also found it funny that they increased the FHOG yet the banks tightened their lending criteria. Karen Link to comment Share on other sites More sharing options...
Guest proud2beaussie Posted September 15, 2009 Share Posted September 15, 2009 I was going to edit my initial post after checking the information supplied by twinsmom however that may have looked like I didn't want to admit my mistake. twinsmom is correct and the market has changed since April and it appears that there are actually no 100% lenders out there now,and if there is they are very hard to find. You can use the FHBG towards your transaction costs but do require genuine savings of at least 3% for a first home buyer,that is what No deposit home loans & 100% home loans product information says anyway. I do apologise for posting incorrect information in my first post-it always helps to check your facts when posting these days as things change quickly-especially when it comes to finance etc. Good luck. Link to comment Share on other sites More sharing options...
Guest julieportsmouth Posted September 15, 2009 Share Posted September 15, 2009 thanks everyone for your help and advice - even if its not what we wanted to hear!! We will continue to save and hope it doesn't take forever. thanks Julie Link to comment Share on other sites More sharing options...
The Bray Family Posted September 15, 2009 Share Posted September 15, 2009 i think there is a special bank account for saving for a morgage.You get a bit more interest i think, saw it on the tv the other day. It would be worth talking to your bank. Sarah Link to comment Share on other sites More sharing options...
Liz B Posted September 16, 2009 Share Posted September 16, 2009 thanks everyone for your help and advice - even if its not what we wanted to hear!! We will continue to save and hope it doesn't take forever. thanks Julie We got 100% with rams and moved in May 2009, we had enough money for fees and the government money went towards the mortgage and we had to have the mortgage insurance on it. A bit worrying as our payments are $950.00 a fortnight, but they will go up eventually. Hope that helps. Liz :cute: Link to comment Share on other sites More sharing options...
Guest julieportsmouth Posted September 16, 2009 Share Posted September 16, 2009 We got 100% with rams and moved in May 2009, we had enough money for fees and the government money went towards the mortgage and we had to have the mortgage insurance on it. A bit worrying as our payments are $950.00 a fortnight, but they will go up eventually. Hope that helps. Liz :cute: Thanks Liz I will definitely look into that! I'm really grateful for your reply, thanks again Julie Link to comment Share on other sites More sharing options...
gpo1971 Posted September 16, 2009 Share Posted September 16, 2009 Some places offer 100% mortgage but the interest rate is higher than it is at a standard bank. Most banks want 10% genuine savings i.e. you have to show that it's been in your account for 3 or 6 months. Some offer 5% but you have to take out insurance with it and, if you're buying near the bottom end of the market, say $400k, then the insurance may well be about the same as 5% anyway i.e. you'll be paying near the 10% value. Some banks let you use the FHOG as part of the deposit, some don't. Anyway, it's down to $14k new build, $10k resale now and will go down further after Chrimbo. Only borrow what you can afford to repay, not what they will give you. Interest rates are really low at the moment (around 5%), they will be back up to 8% or 9% in a year or two I reckon. Link to comment Share on other sites More sharing options...
Mongrel Posted September 16, 2009 Share Posted September 16, 2009 We are havin a house built , got the motgage with keystart very longwinded , 2% deposit. If we had gone with the banks the lending insurance would have been 16000 on a 400k Link to comment Share on other sites More sharing options...
gpo1971 Posted September 16, 2009 Share Posted September 16, 2009 We are havin a house built , got the motgage with keystart very longwinded , 2% deposit. If we had gone with the banks the lending insurance would have been 16000 on a 400k We are looking at this as well (thanks to your recommendation). Link to comment Share on other sites More sharing options...
Guest Posted September 16, 2009 Share Posted September 16, 2009 Hi Julie. I'm a mortgage broker in Perth and get asked this question a fair bit. It is correct that there are no longer 100% mortgages and very few 95% left. I come accross a lot of clients in the same position who have family already here, and often the Limited Security Guarantor Option has not been mentioned or expalined by other lenders or other brokers. A "Limited Security Guarantor" is when there is no problem of affordability, then a family member or close friend, who owns property in Australia already with equity, can put up a portion of their property as additional security (usually 20% of the purchase price). Usually a family member my have been here a while and has build up plenty of equity, eg: Purchase : $400,000 Loan: $400,000 (320k against new purchase + 80k against the purchase property and the additional security) so, basically upon reposession, if there is a shortfall, the shortfall up to a nax of $80,000 would be remaining against the additional security. Benefit, no deposit, and no lenders mortgages insurance payable (saving thousands) I hope this helps, any questions, PM me. Link to comment Share on other sites More sharing options...
spottydog Posted September 17, 2009 Share Posted September 17, 2009 i think there is a special bank account for saving for a morgage.You get a bit more interest i think, saw it on the tv the other day. It would be worth talking to your bank.Sarah I haven't seen many of these in existence but remember the governments hype about them. The government gives you something extra on your savings but the account has to remain open for at least 3 tax years (or possibly more) and you can only use the money to buy your first home. Link to comment Share on other sites More sharing options...
Guest Money Saving Oz Posted September 28, 2009 Share Posted September 28, 2009 HI Julie Another key thing you need to be aware of is mortgage insurance. If you go for a 95% mortgage you will be charged something called mortgage insurance. This has absolutely no benifit to you. It just gives the bank insurance and reduces the risk for them to lend you more than 80%. It will cost you $1,000s (and it's a nice earner for the banks). I know you want to own your own house quickly but the bigger deposit you can put down, the less mortgage insurance you will pay. If you can get 20% deposit you don't pay mortgage insurance. Link to comment Share on other sites More sharing options...
suzy+1 Posted September 28, 2009 Share Posted September 28, 2009 Ive recently spoken to 'affordable living' homes in WA, who specialise in house and land packages and they have confirmed that you would need a deposit as you wont get 100% mortgage, but for borrowing upto $400,000 they say an $8,000 deposit would be needed. Link to comment Share on other sites More sharing options...
Guest Bernicem80 Posted September 28, 2009 Share Posted September 28, 2009 Hi Julie! I too am from the Porstmouth neck of the woods (well Chichester to be exact - but pretty close!) Small world eh?! I am based in North Brisbane. Was a Mortgage Broker in the UK for 7yrs and have been working here for over 6months now. As everyone has correctly stated you will need at least 5% 'genuine savings'. This basically means that the lenders like to see that you have saved 5% of your own money over a period of 3months. Lenders are now starting to pull back, with most only offering 90% lending. So would be best if you could save the 10%. And obviously the more money you can put in the better - especially if you can put in 20% so avoiding paying Lenders Mortgage Insurance. If you would like any further information, or if I can be of any help - then just email or call me and I would gladly be of assistance. Thanks:wink: Link to comment Share on other sites More sharing options...
gpo1971 Posted September 28, 2009 Share Posted September 28, 2009 Ive recently spoken to 'affordable living' homes in WA, who specialise in house and land packages and they have confirmed that you would need a deposit as you wont get 100% mortgage, but for borrowing upto $400,000 they say an $8,000 deposit would be needed. Thats the 2% Keystart that Yorkshirepom was on about. Keystart is the only place where 2% is an option, everywhere else will likely be 10%. But, there are other qualification criteria. Google them and have a look see if you qualify. Link to comment Share on other sites More sharing options...
Guest julieportsmouth Posted September 28, 2009 Share Posted September 28, 2009 thanks everyone for your help & advice - we will be busy saving for a while me thinks!! Julie Link to comment Share on other sites More sharing options...
Guest guest17301 Posted June 26, 2010 Share Posted June 26, 2010 Just ressurecting this thread..does anyone have any up to date info on minimum deposit home loans in the Perth area? I looked on the keystart website but looks like you need 3% genuine savings and a further 3% that can be FTHG?? Am I correct in thinking that the purchase price has to be less than $370kish? and does it have to be a house and land package? So looking at around $10k in your hand to start the process..is that right? Any advice welcomed. Link to comment Share on other sites More sharing options...
Guest Posted June 26, 2010 Share Posted June 26, 2010 Hi Fiona. Your correct with Keystart, they don;t really want to lend anymore, your income cannot be over $60k pa and total household income not more than $90k. Maximum Purchase price is $400k and you do need 6% deposit in total (including First Home owners grant of $7k). The only good thing is that they do not charge the lenders mortgage insurance. There are a few lenders left at 95% loans and they will charge the Lenders Mortgage Insurance to the loan. I'm in Perth, so contact me if you want me to go through your options. Cheers David Mottram Thane Financial Services 0466 693 721 Link to comment Share on other sites More sharing options...
Guest stuart45 Posted August 20, 2010 Share Posted August 20, 2010 If you don't have the financial resources to raise a deposit to put down on a new home, or you're keen to get onto the property ladder, don't worry, you can obtain a mortgage. if you are trying to buy a home but don't have a deposit. A number of mortgage lenders recognise this problem, and there is now an excellent chance you may be able to obtain a mortgage without a deposit. Link to comment Share on other sites More sharing options...
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