Browse Forums Home Finance 1 Mar 29, 2009 9:41 pm Hi, i want to get my first home loan, i am looking at a no-deposit home loan. Just wondering which is the best banks/lenders available to me? Abit of important information about my current status. I work full time earning $1200 a week before tax. My job is also stable, been working the same company for almost 5 years. I have got a credit card ($20,000 limit), never had bad credit. And i dont have any other personal loans. I just dont know much information about home loans and confused how to approach the lenders. So i just need some answers. I am planning on a no-deposit home loan because i want to buy my first home within this year and only starting to save now. Should i cancel my credit card? I heard you cant borrow as much with a credit card. And should i take advantage of the first home owners grant by building a property or its not worth it? And judging by the other thread, is St George the only bank that do no-deposit home loans? And they will be closing that aswell? Can anyone help me? Thanks for your time and help in advance. DAP 7/3/2011 Site start letter 13/4 Earthworks 1/5 Set out 16/5 Storm water and sewer 16/5 Frames 30/5 Roof Tiles 7/5 Lock Up 23/6 Fix Out 30/6 Electrical 20/7 Plumbing 25/7 PCI 19/8 Re: No-Deposit Home Loans? 2Mar 29, 2009 9:54 pm I'll let you in on a little secret, the banks don't know about your credit cards and personal loans unless you tell them. They will see on your credit report if you applied for it in the last five years, but that doesn't mean you took it, and you may have paid it off and closed it. They can't tell unless you tell them, BUT it's unlikely they will ask you to get a letter from them saying that loan is closed, but possible. BTW, I'm not suggesting you lie, just letting you know... But I think 100% loans are a bit scarce at the moment. I think you will find they want at least 10% deposit at the moment. Not very good news, I know. Get a broker to advise you better. Good luck Annie A thankful person is a happy person. [/color]My hobby design blog: http://aviewondesign.blogspot.com/ Re: No-Deposit Home Loans? 3Mar 29, 2009 9:57 pm I think from what has been said on the Home Finance thread that there were only two - from memory Rams and St George - and both are supposedly stopping do these loans. They would be under massive scrutiny from the financial regulatory bodies because of bad lending policies. You will always find someone willing to lend you 100% but you always need to ask - what are they getting out of it? They will either be charging a premium rate or excessive fees or locking you in for a set period of time with massive breaking costs. Better idea is to start saving - for mortgage insurance purposes you only require six months proof of savings. Yes Annietom that is correct however if the poster chose to "lie" for the want of a better word / non-disclose his true credit status then the Bank could pull out at any stage of the loan. Up sh!t creek without a paddle should this happen at final handover stage!! Some things are worth waiting for. Re: No-Deposit Home Loans? 4Mar 29, 2009 10:01 pm Hi ginz88 It's good that you are saving now...because you pretty much need to! The days of 100% home loans are over. Even with the FHOG, many banks now require genuine savings of 3-5%. If l were in your shoes l would work out how much you could borrow (by using a home loan borrowing power calculator - there are plenty of them that can be found online) with an interest a rate of 8-9%. Work out what the repayments for the loan amount that resulted and start saving that amount each month...in a seperate savings account. Once you have close to at least 5% deposit, then start looking into buying/building a home more. If the FHOG is still around then, well that will be a bonus, no-one really knows if it will be extended and if it is what amounts it will be. I'd reduce the credit card limit too....as it will impact dramatically on your borrowing power. Sorry, if this ain't what you wanted to hear, but that's where it's at. Good luck. Re: No-Deposit Home Loans? 5Mar 29, 2009 10:05 pm kyton I think from what has been said on the Home Finance thread that there were only two - from memory Rams and St George - and both are supposedly stopping do these loans. Yep Rams has already ceased and l believe that St George will cease them in 2 weeks. Re: No-Deposit Home Loans? 6Mar 29, 2009 10:14 pm Thankyou all for the quick reply. I am turning 21 years on the 3rd of April, and after that i will start saving and not spend too much on my social life as a young adult. I just dont want to waste money on rent anymore, and the quicker i get a home loan the less money i waste on dead rent money. I also did the calculation on how much i can borrow, which is about 360k, which is perfect for me. So i guess the next step for me is start saving and find a good mortgage broker. DAP 7/3/2011 Site start letter 13/4 Earthworks 1/5 Set out 16/5 Storm water and sewer 16/5 Frames 30/5 Roof Tiles 7/5 Lock Up 23/6 Fix Out 30/6 Electrical 20/7 Plumbing 25/7 PCI 19/8 Re: No-Deposit Home Loans? 7Mar 29, 2009 10:17 pm thorney kyton I think from what has been said on the Home Finance thread that there were only two - from memory Rams and St George - and both are supposedly stopping do these loans. Yep Rams has already ceased and l believe that St George will cease them in 2 weeks. So what should i do? Should i and try get pre-approval for a no-deposit home loan while i still have 2 weeks or just save a minimum of 5%? This is the million dollar question for me. DAP 7/3/2011 Site start letter 13/4 Earthworks 1/5 Set out 16/5 Storm water and sewer 16/5 Frames 30/5 Roof Tiles 7/5 Lock Up 23/6 Fix Out 30/6 Electrical 20/7 Plumbing 25/7 PCI 19/8 Re: No-Deposit Home Loans? 8Mar 29, 2009 10:31 pm If you go for a 100% finance, they will expect you to pay all your costs upfront too. So you will need savings for that anyway. I think about $4000-$8000 stamp duty, mort insurance (3% of what you are borrowing) and legals. If you have these kinda savings, call St George and see what they say. If you have to go 95% or 90% they usually absorb the costs of buying into the loan, so you only need the deposit then. It's a bit of a catch 22 really... You need some money saved either way. A thankful person is a happy person. [/color]My hobby design blog: http://aviewondesign.blogspot.com/ Re: No-Deposit Home Loans? 9Mar 29, 2009 10:35 pm Ok thanks alot Annie, this its best for me to save abit then. Maybe 6 months i will start looking, lets hope the markets dont drop again :S DAP 7/3/2011 Site start letter 13/4 Earthworks 1/5 Set out 16/5 Storm water and sewer 16/5 Frames 30/5 Roof Tiles 7/5 Lock Up 23/6 Fix Out 30/6 Electrical 20/7 Plumbing 25/7 PCI 19/8 Re: No-Deposit Home Loans? 10Mar 29, 2009 10:41 pm ginz88 Thankyou all for the quick reply. I am turning 21 years on the 3rd of April, and after that i will start saving and not spend too much on my social life as a young adult. I just dont want to waste money on rent anymore, and the quicker i get a home loan the less money i waste on dead rent money. I also did the calculation on how much i can borrow, which is about 360k, which is perfect for me. So i guess the next step for me is start saving and find a good mortgage broker. Good on ya for thinking about your future and taking some steps in planning for it. But please don't begrudge the fact you pay rent....it's not dead money unless you rent for the rest of your life, imo. And it's not a waste of money considering the alternatives....living on the streets for example?? So be thankful you have a roof over your head ok. Ok mini-rant over. ginz88 thorney Yep Rams has already ceased and l believe that St George will cease them in 2 weeks. So what should i do? Should i and try get pre-approval for a no-deposit home loan while i still have 2 weeks or just save a minimum of 5%? This is the million dollar question for me. l'd strongly advise that you save the minimum 5%. Believe me, having that savings discipline will stand you in good stead come the time you have a mortgage. Use this time in between to research, educate yourself, and planning for buying or building a home. Re: No-Deposit Home Loans? 11Mar 29, 2009 10:48 pm Thankyou Thorney for your help, i will save for a deposit and will be using this time to find out the most information about home loans. Thankyou all once again. DAP 7/3/2011 Site start letter 13/4 Earthworks 1/5 Set out 16/5 Storm water and sewer 16/5 Frames 30/5 Roof Tiles 7/5 Lock Up 23/6 Fix Out 30/6 Electrical 20/7 Plumbing 25/7 PCI 19/8 No Deposit Home Loans, 100% 13Mar 30, 2009 2:52 pm iTalk My mortgage broker got us a loan in less than 24 hours. If you could show him how much deposit you have, and your tax return, he'll work out something for you so quick. What was your deposit iTalk? 24 hours for an approval is likely to be a highly conditional (if you saw the approval letter, did it come with a long list of conditions?). Yes St George Bank is the only No Deposit home loan lender at the moment, just like it was before 2006 as it was the very first No Deposit Home Loan lender. We saw many lenders enter and leave this field over the last 3 years. Re: No-Deposit Home Loans? 14Mar 30, 2009 2:57 pm Our deposit is 10% and we (the missus and I) both have decent annual income. The only annoying bit was paying $2.5K LMI for the land loan, and I'm expecting to pay another $2.5K for the construction loan. As for the conditions, the approval list "from CBA" looks normal, few charges for the application form, LMI charges, and how much we need to pay monthly. It's a long list, but I doubt there is anything fishy in it. Re: No-Deposit Home Loans? 15May 18, 2009 5:21 pm Sorry for bringing this topic up again but i got a quick questions. Say i want to buy land and build, (land price $170,000. house $150,000. Total $320,00). And the total FHOG will be $32,000 the start of July. Does that mean i can use that grant as a deposit, which means i have 10% deposit? Or am i completely wrong? I have been looking around building in Point Cook, seems nice, either with PD or DFH. Just want to see if i qualify for a loan first. Thankyou DAP 7/3/2011 Site start letter 13/4 Earthworks 1/5 Set out 16/5 Storm water and sewer 16/5 Frames 30/5 Roof Tiles 7/5 Lock Up 23/6 Fix Out 30/6 Electrical 20/7 Plumbing 25/7 PCI 19/8 Re: No-Deposit Home Loans? 16May 18, 2009 5:44 pm ginz88, lenders have been tightening up considerably and you need to show genuine savings (ie you really have saved them, a relative hasnt just parked the money in your account ) as well as FHOG, if applicable. And dont forget to factor in costs like stamp duty, LMI (if applicable) etc - most of your FHOG will probably be eaten up on things like this. Re: No-Deposit Home Loans? 17May 18, 2009 10:14 pm Well then for a loan of about $320000, what is the minimal deposit i need? All i want to do is get a loan, i am not scared about the other costs involved. I just want to get in the market and i will take it from there. Anyone in similar situations? I dont have a deposit but i earn $1200 a week, enought for a $320000 loan, i just need to get through that door. HELP! DAP 7/3/2011 Site start letter 13/4 Earthworks 1/5 Set out 16/5 Storm water and sewer 16/5 Frames 30/5 Roof Tiles 7/5 Lock Up 23/6 Fix Out 30/6 Electrical 20/7 Plumbing 25/7 PCI 19/8 Re: No-Deposit Home Loans? 18May 18, 2009 10:29 pm Call Devine. I just saw an ad for them claiming that they accept $0 deposit. They might whack you with a high interest rate or hidden fees though. You need to be careful with these small institutes Re: No-Deposit Home Loans? 19May 18, 2009 10:45 pm ginz88 Sorry for bringing this topic up again but i got a quick questions. Say i want to buy land and build, (land price $170,000. house $150,000. Total $320,00). And the total FHOG will be $32,000 the start of July. Does that mean i can use that grant as a deposit, which means i have 10% deposit? Or am i completely wrong? I have been looking around building in Point Cook, seems nice, either with PD or DFH. Just want to see if i qualify for a loan first. Thankyou You keep saying $320,000. What house are you going to build for $150k? That seems like a completely unrealistic price for a house. Then you have site costs as well...... budget for 10k in Point Cook because of the rock and you'll most like need a H class slab. 10k if you're lucky. To be realistic, you have to start thinking more around $350k to be building in Point Cook. I leave you to fend for yourself, figure things out yourself. Terrence Malick Re: No-Deposit Home Loans? 20May 18, 2009 11:31 pm joles ginz88 Sorry for bringing this topic up again but i got a quick questions. Say i want to buy land and build, (land price $170,000. house $150,000. Total $320,00). And the total FHOG will be $32,000 the start of July. Does that mean i can use that grant as a deposit, which means i have 10% deposit? Or am i completely wrong? I have been looking around building in Point Cook, seems nice, either with PD or DFH. Just want to see if i qualify for a loan first. Thankyou You keep saying $320,000. What house are you going to build for $150k? That seems like a completely unrealistic price for a house. Then you have site costs as well...... budget for 10k in Point Cook because of the rock and you'll most like need a H class slab. 10k if you're lucky. To be realistic, you have to start thinking more around $350k to be building in Point Cook. Well for a 448msquare land it will cost about 170k. And looking at DFH there are houses i like with the price range between $125001-$150000, the house i like doesnt say how much so i estimate the maximum which is $150000. Now 170k + 150k is 320k, but your right, i should get a loan for 350k to be safe. 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