FHB Loans

Discussion in 'Loans & Mortgage Brokers' started by MTR, 20th Jan, 2020.

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  1. MTR

    MTR Material Girl Premium Member

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    Do FHB still need 20% deposit? Are there other options??
     
  2. David R Sutantyo

    David R Sutantyo Active Member

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    Plenty of other options, but general rule is, higher the risk, higher the rate.
     
  3. MTR

    MTR Material Girl Premium Member

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    ok thanks for this
     
  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

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    There was never a requirement for first home buyers to have 20% deposit.
    90% loans, and even 95% loans were and are available.
     
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  5. MTR

    MTR Material Girl Premium Member

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    thanks, just shows i know very little
     
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  6. Rex

    Rex Well-Known Member

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    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.
     
  7. Lindsay_W

    Lindsay_W Well-Known Member

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    Lots of options up to 95% LVR (LMI Inclusive)
    Variable P&I Rates available from 3.04% @ 95% LVR
     
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  8. JohnPropChat

    JohnPropChat Well-Known Member

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  9. tobe

    tobe Well-Known Member

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    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.
     
  10. beachgurl

    beachgurl Well-Known Member

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    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.