Personal loan to fund home loan deposit?

Hi Guys,

I'm currently trying to finance an apartment purchase.
However, I got knocked back on my first application because the credit check unearthed a debt we didn't even know about - a more detailed discussion about that is here: http://www.somersoft.com/forums/showthread.php?t=55471

I really need 80% LVR to be able to borrow with my partner's black mark on the credit rating. My broker and a few other people have suggested I get a personal loan to fund the shortfall in the deposit. I need another $40-50k to make up 80% LVR.

Will lenders lend me money for a deposit? It seems silly to me. How should I go about it?
I shouldn't have any issue borrowing or repaying a $40-50k loan, but how do I ask for it? If I just said I want a loan for a home deposit will they just laugh?

Thanks!
 
lenders will look at your servicabilty so the cost per mont you outlay for your 40-50K personal loan. if you can afford it and still pass servicabilty i can't see why not.
 
Will lenders lend me money for a deposit? It seems silly to me. How should I go about it?
I shouldn't have any issue borrowing or repaying a $40-50k loan, but how do I ask for it? If I just said I want a loan for a home deposit will they just laugh?

No, they won't laugh, probably just grimmace a bit (like the face my ex-accountant used to pull) :p

Reality is that:
1. No you won't get a personal loan saying that you want it for a house deposit
2. No the house mortgage people won't give you an 80% loan knowing that you borrowed all (or most of the deposit)
3. You will (may) find a MB who can do something creative for you (possibly)

The other way is to delay your purchase by say 12 months.
Borrow the $50K as a personal loan OK and buy shares with it
In 12 months time reapply for the home loan. When they ask where is the deposit coming from? tell them: I'm selling some shares.....oh and by the way I have a personal loan - but here is my repayment history.
 
There are no easy ways around it. Most lenders have house deposit as an excluded purpose for their personal loans, and most lenders will not knowingly let you use borrowed funds as funds to complete the purchase, even if your serviceability is fine with both debts. Add to that the credit file issue, and its a non starter. Points for thinking outside the box.
Other alternatives apart from putting off the purchase/ purchasing something smaller with a lower LVR, purchasing in only one name, is to perhaps look at having a guarantor go on the application, with or without your other half as an applicant, finding an equity partner, or non conforming lender with higher rates and exit fees.
There is no easy answer.
 
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