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Genuine savings

Discussion in 'Property Finance' started by bonanzawealth, 31st Jul, 2015.

  1. bonanzawealth

    bonanzawealth Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    58
    Location:
    Sydney NSW
    So I'm buying OTP at the moment in NSW for $500k and it'll be completed next year. hypothetically speaking, property price goes up and when I apply for loan, the bank valuation comes at $600k.

    My understanding is if my loan requires LMI, I need to have 5% genuine savings. Is that 5% of purchase price $500k OR bank valuation $600k?

    Does my 10% deposit on $500k count as genuine savings?
     
  2. Hodor

    Hodor Well-Known Member

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    Location:
    Homeless
    Where did the 10% come from?
     
  3. tobe

    tobe Well-Known Member

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    18th Jun, 2015
    Posts:
    905
    Location:
    Melbourne
    Most lenders will count the 10% as genuine savings once it's been held by the estate agent trust for more than 3 months.
     
  4. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,162
    Location:
    Canberra and Sydney
    Your deposit should suffice as gen savings.

    Just keep a statement that shows the money sitting in your account before you paid the deposit.

    Cheers

    Jamie
     
  5. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
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    Location:
    Gold Coast
    if its an IP ist possible there will be no lmi at that time for that purpose.

    Line the ducks up

    ta

    rolf