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Home Loans?


Dan Jade

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Hey, are australian home loans just the same as UK mortgages? As in you will need a huge deposit to qualify & be on a particular wage?? Or if you are on an awesome wage like over 100k would they take this into consideration without the deposit?

 

cheers x

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Hi

We just bought our house. A lot of the large banks accept a 5% deposit if you are a permanent resident or citizen, but you have to pay mortgage lenders insurace which is pretty steep!

You probably wont find anyone who will give you a 100% deposit unless you have family who can guarantor...

Not sure on the ins and outs, but they must be Australia residents/citizens too.

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Hey, are australian home loans just the same as UK mortgages? As in you will need a huge deposit to qualify & be on a particular wage?? Or if you are on an awesome wage like over 100k would they take this into consideration without the deposit?

 

Few things :-

Most places require at least 5%.

Some places don't (look at NicheLiving.com.au - they have a 1% offer on at the minute)

If you have under 20% deposit you generally have to pay insurance.

$100k isn't an "awesome" wage, and it'll have no impact on the deposit required.

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Hey, are australian home loans just the same as UK mortgages? As in you will need a huge deposit to qualify & be on a particular wage?? Or if you are on an awesome wage like over 100k would they take this into consideration without the deposit?

 

cheers x

 

Works pretty much the same, other than the mortgage indemnity insurance which applies for anything less than a 20% deposit and is a pretty big cost, it can sometimes be added to the mortgaged amount however. Definitely being on $100k is not going to make any difference to this and this is far from being an "awesome" wage.

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Guest GeorgeD

We had to pay $12K insurance to put down a $15K (3%) deposit on a $500K loan. If we paid $50K (10%) deposit, the insurance would've been $10K. Not much of a saving. If your deposit is less than 20%, most lenders will charge you the LMI insurance fee. It's for their benefit, not yours. If you fail to pay your mortgage they still sell it out under you at a pittance. It just insures them against any loss.

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