Hi this is my first post so go ahead and redicule me!! Lol.
I have got 5-10% deposit saved for a home loan for a property worth 430k-450k and all the deals that i have seen on ozbargain are for someone with 20% deposit. The cheapest that i could find is with bank of queensland @4.87% variable with 100% offset. Its called clear path home loan.
Does anyone know if there's anything better or ways for me to find out myself if there's anything better out there.
Any help would be appreciated!!
Thanks mate. BOQ would capitalise the LMI in the loan and i wouldn't need the stamp duty as i am a first home owner. Thanks heaps for your replying.
I'm headed down ing direct, 4.89% with full offset on a 10% deposit… One of their shortest running promos was lmi for $1 - this was the reason I jumped with them. One of the keys was a max lvr of 90%, so you needed to cover stamps, legals, etc yourself
I'm told this promo is expired, but could try talk your way into it?
I checked their website but unfortunately it looks like this deal is expired. I will try to talk to them about this deal. Thanks mate.
1
Hey R-W,
I just went down this path not too long ago. In my honest opinion, I suggest going to a broker as per airzone suggestion.
When you have a small percent for the loan, there is plenty of disadvantages (also outlined by airzone).
The other thing is that when going though a broker, your chances of getting accepted are much higher. If you go ahead and try apply for a heap of loans yourself without any support, this may work against you. This is because each bank will do a credit check, and each credit check will affect your overall score. Unfortunately, this could mean that someone could simply look at your score and reject you and the cycle would continue.
Once again, you will have to be aware and wise with your broker. Their primary source of income is from commission, so they will try and set you up with a bank that works best in their favor.
Thanks for the info bud. I'll try brokers next and see what sort of deal they offer me.
I tried desperately to go through a broker a couple of years ago but couldn't find one that needed work badly enough to even bother responding to my enquiries.
Broker here -
Give me a private message I'll see if I can help you out.
You will pay higher interest and also have to pay Lenders Mortgage Insurance if you borrow more than 80% of the property value. I don't think you can expect much lower, but certainly look around (or use a broker to see if they can find a better deal).
Factor in about 12-14k in LMI, and if you aren't eligible for stamp duty reduction, another 18-20k or so there. This can be capitalised in the loan, but this will obviously affect your loan to value ratio.
Actually a broker can work all this out for you, so it might be easier to go down that path. In a few years when your property has appreciated in value, your current loan might be around that 80% of the property value, then you can refinance to a lower rate loan (with or without a broker).