Second home buyer.

Discussion in 'Loans & Mortgage Brokers' started by joeydagr8, 21st Jan, 2020.

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  1. joeydagr8

    joeydagr8 Member

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    Second home buyer, sold first house years ago .. is there any Perth wa companies that will take just 5% deposit and take either lmi or settlement fees out of the deposit .. looking for established house $480k max
     
  2. Lindsay_W

    Lindsay_W Well-Known Member

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    LMI gets added to the loan, it's not an upfront cost, so no it won't be taken from the deposit.
    Settlement fees come out, at settlement and they are a cost you need to pay for. They usually get taken from the loan being given at settlement, therefore you need to cover the shortfall from your funds to complete (deposit) so yes.
    There are lenders that will lend 95% of the purchase price yes.
     
  3. joeydagr8

    joeydagr8 Member

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    Ok great thank you
     
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  4. Morgs

    Morgs Well-Known Member Business Member

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    Some lenders will do 95% + capitalize the LMI but just keep in mind rates are high in this space.
     
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  5. joeydagr8

    joeydagr8 Member

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    Yes I expect to pay higher interest rate until
    We get lvi below 80 and refinance
     
  6. Rex

    Rex Well-Known Member

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    Risky strategy - it will be at least 7 years before you hit 80% LVR at normal P&I repayments, assuming no movement in house prices. So you could be locked in for a while, unless you want to tip extra savings in to refinance early.
    But you might be eligible for Keystart if buying up to $480K, which has very low desposit requirements (as low as 2%) but of course quite high interest rate. You don't have to be a first home buyer, you just can't own other property at the time of purchase.
     
  7. joeydagr8

    joeydagr8 Member

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    Yes that's why I was keeping under 480k if possible , me and my partner earn over 200k a year so would try hit 80 lvi quite quickly
     
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  8. joeydagr8

    joeydagr8 Member

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    Basically we have 25k in next month or so which is enough deposit and fees for key start with no lmi, but I would prefer a different lender with a better rate if possible
     
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  9. hammer

    hammer Well-Known Member

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    Get a broker to help you out. @Jess Peletier is in WA and can find you the loan you need. I know because I was bugging her about a similar deal only last week!
     
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  10. Lindsay_W

    Lindsay_W Well-Known Member

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    Riskier than continuing to rent and try to save enough cash for a 20% deposit (+ Costs) ??
    With a risk of property increasing in value at the same time
     
  11. joeydagr8

    joeydagr8 Member

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    Thanks mate
     
  12. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    + 1

    ta
    rolf
     
  13. Rex

    Rex Well-Known Member

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    Prices can go either way - we're talking Perth here. With hindsight, waiting on the sidelines and saving a larger deposit would have been a masterful strategy for somebody considering purchasing in Perth a few years ago - properties are now 20% cheaper and those who previously jumped in with low deposits have had their equity wiped out and then some.
    Though fair to say that was an aberration for Aussie property, and not a common occurrence. Still...
     
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  14. Lindsay_W

    Lindsay_W Well-Known Member

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    Yes this is true and Hindsight is a wonderful thing however there are a few people already talking about Perth being at the bottom of the property cycle, does anyone know for certain? Probably not, but after years of decreasing/stagnant prices it might be a good time to get in? (I note that you're from there and have much more knowledge regarding that market than I do)
    Up to the OP to do their own research on it and then make the decision I guess
     
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  15. Rex

    Rex Well-Known Member

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    Full disclosure, I made a purchase in Perth 3 months ago, so I am betting on the market being at the bottom. But I'd still be wary of jumping in on a high LVR purchase if it's a high interest rate.