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Revision as of 19:53, 3 February 2008
, 19:53, 3 February 2008→No Deposit Home Loans In Australia: add content
== No Deposit Home Loans In Australia ==
== No Deposit Home Loans In Australia ==
Rising housing prices in recent years have made it very difficult for many homebuyers to save the deposit. Lenders have recognized this and have created the no deposit loan product.
No deposit loans are generally available for new and established buildings, owner occupied, as well as for investors. To qualify for a no - deposit loan you need to be an Australian Citizen or permanent resident and currently living in Australia.
Borrowers often need to acquire lender's mortgage insurance where the Loan to Value Ratio (LVR) exceeds 80%. Generally, the higher the LVR, the higher the premiums. Hence the premiums on a no deposit loan can be large.
Combining stamp duty exemptions and first homeowner grants, no deposit loans allow borrowers to gain a foothold in the market based on their ability to service the mortgage rather than having the savings required to qualify for a more mainstream loan with deposit.
No deposit loans can also be a useful tool for investors wanting to take maximum advantage of leveraging.
While no deposit loans can be secured for similar rates to standard home loans, you should be aware that there is the risk of ending up in negative equity. For example, you purchase a house for $300,000 borrowing the full amount and the property market falls by 10%, you now owe $300,000 for a property that is worth $270,000 - that's a shortfall of $30,000 you need to recover.
As with all loans, make sure that you borrow within your means. Work out a budget, stick to it, and do not borrow more than you planned just because it is available. Also, consider the property market that you are buying into: are the prices rising or falling?
Plan to repay the loan as quickly as possible; take advantage of redraw and offset facilities and make additional repayments where possible. Remember, you pay interest on every dollar owed, every day. The faster you reduce your loan the less exposed you are to the danger of a market dip.
'''Mrs. Mortgage...'''
Mrs. Mortgage is a mortgage broker firm operating in Melbourne, with resources able to stretch around Australia. Mrs. Mortgage is headed by the original "Mrs. Mortgage" Jennifer Schelbert. Jennifer has been working in the mortgage broking industry for years, and deciding that the industry needed a highly ethical company that could cater to the personalised needs of the individual, decided to go out on her own.
Today Jennifer holds a Diploma in Financial Services (Finance/Mortgage Broking Management), and has contacts with dozens of different lenders to get the best deal for you.
Today Mrs. Mortgage is a growing firm that has more than one "Mrs. Mortgage" working for it. As the company continues to grow, it still holds true to its core values of high ethics, while working for the client in the best possible manner. This means that when you come to see us we will not just put you into the mortgage that will make the best commission for us, but the one that will suit you the best. This may even mean that we might send you back to your existing lender with no commission for us!
At Mrs. Mortgage we realise that very often people may wish to see us for advice on how to purchase their first home or investment property. If this is the case we will not push you into a contract until you are ready. Our service to you is free, but other fees may apply. So call Mrs. Mortgage, talk to me, and find out how we can help you.
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== External Links ==
== External Links ==
