Discussion in 'Loans & Mortgage Brokers' started by MTR, 20th Jan, 2020.
Do FHB still need 20% deposit? Are there other options??
Plenty of other options, but general rule is, higher the risk, higher the rate.
ok thanks for this
There was never a requirement for first home buyers to have 20% deposit.
90% loans, and even 95% loans were and are available.
thanks, just shows i know very little
Plenty of competitive rates up to 90% LVR out there available to FHBs who are willing to pay LMI. Options thin, products get less competitive and LMI really starts to sting beyond this. Some lenders will still go up to 97% (I think?) but there really are diminishing returns one you go past 90% IMO.
Lots of options up to 95% LVR (LMI Inclusive)
Variable P&I Rates available from 3.04% @ 95% LVR
Not to forget the newly introduced FHLDS - First Home Loan Deposit Scheme | NHFIC
97 and 98% loans are a little less common. There’s one funder doing 100% loans for qualified fhb. From memory they need to have a certain income level, professionally employed etc.
I write a lot of FHB loans at 95% + LMI. Have to be squeaky clean and the 5% deposit in their bank account for at least 3 months.
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