Is 97% LVR possible?

I.e. I have saved 37k total and want to purchase a 650k home. This would mean that 20k will go to the deposit, and the remaining 17k to cover stamp duty. Is this possible at the moment? Also what lenders can offer this?
Full time worker for 2 years, clean credit, earning 115k/ year pre tax, first home buyer, purchasing a house

 

The Commonwealth scheme for low depsits is 95% LVR and some smaller lenders still have space. I wouldnt image 97% will be available especially with the new serviceability tests. I know people who are struggling to get to 80%

This is definately the area of enquiry for a broker to assist and guide what may be a problem.

 

Yes it’s possible. Rates aren’t great though. High 4’s.

 

Don't think you'll have any luck here unfortunately.
Once you add mortgage insurance on top of 97% LVR it's more than 100% LVR in total, there is a lender that will go to 99% including LMI however the base LVR would still need to be approx 95% ($617K).
So you would need to find approx $13K more cash.

To qualify for the FHLDS (LMI Waiver) you need to spend less than $600K on the purchase price for established homes in QLD, unless building new then that amount caps at $650K, so that probably rules that out too.

Find or save some more cash then consider, or start at a lower price point.
alternatively, if you can get a security guarantee from a parents property you could potentially borrow 105% LVR and avoid LMI (subject to value of security guarntee property, existing debt secured against it and borrowing capacity)

 

FHLDS is a 2% deposit and several lenders are distributors of this product.

Consider dropping the purchase price to sub 600k in order to get in the market and not miss any future growth, if purchasing in QLD.

 

If youre an existing client with ANZ with a credit card, I believe you can go up to 97% INC LMI.

Also Bank Australia offers it for first home buyers.

 

Hi Jay
First home buyer qualifies for 5% deposit with No LMI. There are two schemes for existing properties (not many spots left) or new properties plus stamp duty exemption as well until certain price threshold. Work with a broker to reserve a spot in the scheme and he will be able to work the total cash required. You are getting standard rates even the loan is at 95% LVR.
Good luck.
James

 

If parental guarantor is an option then this would be another path to consider