Borrowing gov charges

[Nick1995]

Say i had a 17500 deposit for a 350k house 5% is there Anychance you couldraise the deposit and borrow more to pay for insurance and stampduty ect?

 

[Corey Batt]

Most lenders will allow LMI to be capitalised onto the loan - or a portion of it depending on the LVR.

Stamp duty however cannot be capitalised, the only way you can borrow other charges is through drawing it from another properties equity. (this is how you do 105% LVR purchases when you have a property portfolio)

 

[tobe]

not as a home loan, unless you have equity in another property or have someone who wants to be your guarantor. Some lenders will permit a personal loan or similar to pay these other costs.

 

[Brady]

General rule 11% of purchase price required.

So $350k property minimum funds required approx $38.5k

 

[Terry_w]

If you had a LOC secured by another property then yes. If not, then a commerical lender is not going to lend you. Try a related party lender.

 

[Nick1995]

If you had a LOC secured by another property then yes. If not, then a commerical lender is not going to lend you. Try a related party lender.

Thanks guys. Trying to get this money together is not the easiest thing. Will just have to keep max saving!

 

[Jamie M]

Hi Nick

Do you have another property?

Tobe's mention of a guarantor is another option - but there's LOTS to consider with this approach. It can work well in some situations but be hazardous in others.

If you're doing it alone - bankwest is still doing 95% + uncapped LMI. Means you can get away with contributing closer to 9% of the purchase price to make up the minimum 5% deposit and costs.

Cheers

Jamie

 

[Nick1995]

Hi Nick

Do you have another property?

Tobe's mention of a guarantor is another option - but there's LOTS to consider with this approach. It can work well in some situations but be hazardous in others.

If you're doing it alone - bankwest is still doing 95% + uncapped LMI. Means you can get away with contributing closer to 9% of the purchase price to make up the minimum 5% deposit and costs.

Cheers

Jamie

Hey Jamie. This will be my first property. I have about 19k saved. Was trying to get family to loan me some for samp duty ect but looks like ill just have to keep saving. Thanks for the advice!

 

[Peter_Tersteeg]

If this is your first property and you can't get assistance by way of a third party equity guarantee, then you're going to have to save the funds for deposit, stamp duty, etc.

At a minimum, you'd need about 11% of the property value (for a 95% loan). Your options would be very restricted so ideally you'd have bout 15% to 17% to get a 90% lend.

 

[Redom]

Hey Jamie. This will be my first property. I have about 19k saved. Was trying to get family to loan me some for samp duty ect but looks like ill just have to keep saving. Thanks for the advice!

Do you have access to the FHOG Nick? I.e. are you purchasing as a PPOR?

That could help a fair bit.