Hello Guys, Need advice for a home loan. The current scenario is: -: We both working full time -: Current income: 102,000 -: Deposit 10% -: Loan need: 620000 -: No personal loans or credit cards -: We both are permanent residents. (Melbourne, Vic) Are we qualifying for this amount? If we are borrowing 620000, then we have to pay 62000 in deposit + LMI? Or we have to pay 82000 +LMI according to the broker? Any help would be appreciated.
Probably, unless your monthly expenditure is large. I can't make sense of this, What's the purchase price? - that's the only way to work our what deposit you need to avoid LMI There are incentives for first home buyers to avoid LMI and some lenders will go to 85% LVR with no LMI. If you already have a broker I suggest asking them these questions as they have the relevant supporting data to confirm those borrowing capacity figures.
Without the full details, your likely to qualify for a loan. Likely best to speak to your bank or broker to get a full picture of your funding and budgets. Different deposit amounts and different budgets will adjust the Loan to value ratio and associated LMI fees payable. Depending on what you purchase and your profession, there may be options to reduce or remove the LMI fee (e.g. 15% deposit loans, 5% no LMI scheme, etc).
Please ask the broker to provide you with more detail in their recommendation and how it works. Not enough information has been provided to give an accurate response.
