Browse Forums Home Finance Re: How Much Deposit for Your Home Loan? 7Mar 17, 2009 12:08 pm Blog: http://bluemistkids.blogspot.com "Never be afraid to try something new. Remember, amateurs built the ark, and professionals built the Titanic." Re: How Much Deposit for Your Home Loan? 13Mar 18, 2009 8:31 am 'We make a living by what we get, but we make a life by what we give.' - Winston Churchill Re: How Much Deposit for Your Home Loan? 14Mar 18, 2009 1:59 pm Building with PD - Regent 23 Cascades on Clyde Estate HomeOne Building Thread - PCI Completed - 28th August. Handover - 11th September. Re: How Much Deposit for Your Home Loan? 17Mar 20, 2009 9:49 am erinleigh I'm pretty sure ours is 97%. Which isn't on your list.. Hi erinleigh, 97% is actually either a 100% or a 95% home loan in most cases. Let me explain; if you borrow 97% and add the mortgage insurance to it, the loan becomes 100% or very close to it. If you borrow 95% and add the mortgage insurance to it, maximum they will allow is 97%. Re: How Much Deposit for Your Home Loan? 18Mar 20, 2009 10:00 am We borrowed 95% on our land but didn't need it all so we just paid it straight off the principle when we recieved the leftover so our loan is sitting just under 90%. We are now getting a second loan for the construction of the house and borrowing 95% on that but we won't need it. Good thing is we have gained about 20k in equity on the land since we bought it! 2nd build here we come in Whittlesea! https://forum.homeone.com.au/viewtopic.php?f=31&t=92617 1st Build - Henley - Cooper in Doreen! (2009) https://forum.homeone.com.au/viewtopic.php?f=31&t=17354 Re: How Much Deposit for Your Home Loan? 19Mar 20, 2009 10:10 am iTalk It seems that the 'Lender Mortgage Insurance' will cost us an arm and leg. Are there any other ways of avoiding it ? I mean I could borrow some money from the in-laws to make up the 20% deposit. Once I get the loan, I could withdraw the money and give it back to the in-laws Does that logic sound right ? Or am I missing something ? I'll be saving almost $6K if I'm able to do that. You are certainly creative! You won't beat LMi unless you have equity in a cross collateral property (eg. be nice to your parents, aunty, grandma ) or 15 or 20% deposit (depends on lender). The problem with your suggestion is that, you can't withdraw the money from your home loan just like that. You can apply for an increase but they will not allow that immediately after settlement and will never allow you to increase your loan to anything above 95% of the value (and that's if you are lucky). I hope that helps. Re: How Much Deposit for Your Home Loan? 20Mar 20, 2009 10:31 am Thanks thlo, that makes lots of sense.
I'm paying a mortgage insurance of $2.5 for the land only. I could afford 20% for the house-building loan (including the FHOG), will I be charged for the LMI ? The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 19106 Hi, you've probably already resolved this, however, Commbank will probably pay the funds to you after you send evidence the work is done regardless the change in the quotes. 1 35326 In NSW the maximum deposit for building work is 5% until the builder provides HBCF insurance 1 4822 |