How to get a personal loan for deposit of a house

[Uiriamu]

Hi All,

Just wanted to see if anyone had any experience getting a personal loan where the stated purpose was as funds to help purchase a house.

 

[Peter_Tersteeg]

Most lenders will not accept a personal loan as part of your deposit.

There are some very limited exceptions, for example Adelaide Bank will supply a $20k credit card to assist with stamp duty and other costs, for the most part you need to put some of your own money into the deal, either by way of savings or equity in another property.

Family guarantees are also available which can overcome the deposit problem.

 

[Evachange]

And if you one of the lucky ones you may be able to get a gift from family to use as a deposit.

A stat dec will be required stating its a gift and not refundable.

Kind Regards,

 

[Corey Batt]

I won't common on personal lenders taking on such a request, but there are very few products which accept borrowed non-genuine savings as a deposit, and they generally have other drawbacks (higher rates, LVR restrictions etc).

 

[Mick C]

Before going down the personal loan part ...make sure the home loan provider will give you the money you need; as you will be applying for a non-genuine savings loan + higher LVR which is not a easy mix to get approved.

Even with a personal loan, you need to have atleast 2-3% in the purchase cost as savings as a min, the rest of the 4-5% "can" be a Personal loan...but as mentioned not a easy loan to get approved as your only limited to 1 lender ( that we use anyway) + very very strict criterias.


Cheers

 

[Paul@PFI]

The loan repayments will also lower the ability to service the proposed home loan. eg You might find the repaymnets on a $20K loan may affect your ability to borrow by a greater factor ie $100K. So it may be futile.

 

[Aaron_C]

The loan repayments will also lower the ability to service the proposed home loan. eg You might find the repaymnets on a $20K loan may affect your ability to borrow by a greater factor ie $100K. So it may be futile.

True but most people in this situation have strong incomes so a personal loan is no big deal for servicing.

 

[Evachange]

If the LVR is 80% or less and you have a gift then non gen savings may not matter with some lenders.

Over 80% is different all together.

Personal loan for a deposit of course is something different all together.

Cheers,

 

[Rolf Latham]

WBC

Park the loan funds for 90 days

Then it's gen savings and 97 % lend is doable subject to normal verifications
.
Other gen savings fix might be rental history etc .

You'd need to really think about this though if u can't save a deposit usually one can't afford the loan

At
Rolf

 

[tobe]

citibank will do a PL for up to $30k as part of a home loan package. If you dont have gen savings, then max LVR for the home loan is 85%, meaning this product is only feasable if you have some cash from another source or a very low purchase price in mind.

 

[r3ckless]

As peter mentioned earlier, most lenders will not accept personal loan funds as a deposit. Keeping in mine, you will need genuine savings of 10% for an investment loan with some banks. genuine savings is basically having the funds sit in your account for 3 months... something to consider?

 

[Aaron_C]

The bigger issue is that you wouldn't be able to get the personal loan in the first place.

 

[Brady]

Cocktail anyone?