Mortgage Minute: Buying your first home with less than 20% deposit
In this Mortgage Minute we talk about buying your first home with less than 20% deposit.
Despite the LVR rules, it is possible to buy an existing property with less than 20%. The absolute minimum is 5%, however, the difference is that your interest rate will be higher than someone with a 20% deposit.
You will also need a valuation which isn't always the case when buying with the larger deposit.
In this case the bank will usually add a Low Equity Margin which can be as high as 1%. This margin continues to apply until your equity position improves. Some banks are currently offering discounts or even waiving the Low equity margin. Cash-back offers are also common and the banks have more leeway with the LVR restrictions being eased.
As there is more funding available we can potentially get you pre approved with less than a 20% deposit. So get in touch and we can help you get into your first home sooner, call 03 441 1307 and book a free appointment