skye

Can you get them? or would you advise against them......... and what are the pitfalls of doing it..

martinw01908

I have never seen them offered but as a Brit yet to move I understand that the Aussies like to put down large deposits and pay the thing off as quickly as possible. So I would guess not likely.

Pitfalls if you can get one: The same pitfalls as a UK 100% mortgage. Higher interest rates than mortgages with a deposit. The more you put down the less interest you will pay over the lifetime of the loan compared to a 100% mortgage and the better borrowing rate you are likely to get.

With 100% mortgages especially - don't overstretch yourself and keep some emergency funds in case of unforeseen circumstances or falling property prices.

northerner

Yes you can get them. Same as UK really - you'll pay a bit more interest for the privilege. Remember that interest rates are higher here to start off with though...

Graham

Dorothy

They do 100% mortgages, but if you work out what you need to pay upfront in fees, etc, you are better off putting 5-10% down. On a $300,000 mortgage you would need just over $15,000 downpayment plus fees, which are pretty much covered by your first time homeowner's grant of $7000, so you only need to come up with the 15K. With a 100% mortgage you have to come up with almost $17,000 worth of fees and insurance, of which 7k is covered by your grant. In the end, you are far better to come up with the extra 5,000 as it works out to a huge savings in the long run.
Get a good mortgage broker working for you when you decide to buy and they will explain all the fine print.

wanderingwombat

Ask a 100% loan provider as well

http://www.firstpermanent.com.au/

WW