Problems with interest rates and repayments? Ask for home loan help.
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Lenders have different requirements with regard to deposit requirements however most require 20% equity unless otherwise they will cover the shortfall with Lenders Mortgage Insurance (“LMI”). Lenders Mortgage Insurance
Companies can enable a borrower a loan of up to 100% in some cases however this at the cost of a significant insurance premium. This premium will cover any loan shortfall should the lender be forced to sell the property however the LMI company will seek repayment from the borrower directly for the shortfall paid.
A very small number of lenders will allow borrowings with lesser deposits either without insurance or by internally insuring the debt with a premium or an interest rate loading.
A deposit on a property does not necessarily have to take the form of cash equity in the specific property. Lenders are able to utilise the equity in other properties owned by the borrower or they might even allow others to support the loan by way of Third Party Mortgage or Guarantee.
Call Your Local Finance mortgage broker on 1300 787 665 to discuss your options.
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