If you want to purchase your first home but you do not have enough deposits, some lenders may be able to lend you 100 per cent of the purchased price as long as you have good income, stable job and perfect credit history.
Gift from parents: Most lenders would require genuine savings when you borrow 100 per cent of the purchase price. The reason being is that if you can save, you can repay the home loan. However, some lenders may accept the funds come from different sources, such as gift from parents.
Guarantors: If you can use your parents’ home or investment home as an additional security property, you can borrow more than 100 per cent of the purchase, which is enough to cover all costs associated with the purchase. You may not need to pay LMI in this case.
Costs associated with the purchase:
Purchase stamp duty: this is one of the most expensive costs. If you are first home buyers, you can be eligible for the stamp duty concession.
Registration fee: This fee is charged by the Government to change the name of property title and register new mortgage on the title.
Conveyancing fee: This fee is charged by your conveyancer/solicitor. The cost is normally from $700 to $1,500.
Lenders fee: some lenders may charge you the set up fee, which is also known as establishment fee. However, this fee can be waived depending on the product and the lender that you choose.
LMI: This is the second major costs that you need to pay for loan at over 80 per cent. It varies from 1.5 per cent of the loan amount to 3.5 per cent of the loan amount.