90% home loan lenders can help you secure a loan with a low deposit to worry about or prepare for your purchase. The challenge is finding the right bank or lender that can provide you with such an offer. Every bank and lender in Australia have a different set of lending guideline to follow. To be able to get access to the right lenders suited for your low-deposit mortgage, working with a loan specialist would be ideal.
To begin with your application, you can ask yourself these questions to be able to determine if you are indeed qualified for a 90% home loan.
If you are to purchase a new property, refinance an existing home loan, build an owner occupies the property or invest in a property, you are qualified for a 90% home loan application. Debt consolidation can also be considered as a 90% home loan application but under special circumstances.
If you have a strong credit history, you are most likely eligible for a 90% home loan. Unlike bad credit home loans, our risk as a client is higher, thus allowing you to enjoy better chances of approval plus better features when it comes to applying and getting approved for a mortgage.
Do you have minor defaults or small defaults on your credit history? You are still eligible for a low-deposit home loan even with these few issues in your finances. If you are currently paying other liabilities such as your credit card bills, rents and other personal loans on a timely manner, the chances of getting approved for a mortgage is higher.
Your capacity to repay a mortgage is one of the biggest factors that makes you eligible for a loan. You need to have a stable source of income. Stable employment is always given preference by lenders, generally 6 months in the current job upon application or two years of total work in the same field or market.
Having a considerable income is also essential since it affects your capabilities to repay a loan. Your serviceability counts.
Your savings can sometimes be eligible for a home loan. However, with a good credit history, some lenders may not require such amount. Nonetheless, it would be advisable to have enough savings to avoid possible issues that may hinder you from repaying your mortgage in the future.
Most lenders surprisingly will only approve a 90% mortgage up to $1,000,000. They rarely approve anything higher than that. They will only allow you to borrow such amount if you have several properties that can be used as security for your home loan. Some banks can approve a 90% loan for above $2,000,000 properties, only to those that have exceptionally strong finances. An LMI is usually required for 90%LVR homes above $1,000,000 and you’ll probably get about 87% of your loan amount after the LMI is deducted.
Ready to apply for a 90% home loan?
Intellichoice’s mortgage brokers can help you get approved through these tough loans. You can call us at 1300 55 10 45 or visit our Facebook page for more information.
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