Home Buying...
 

I know this has probably been done time and time again but here it goes...

Currently renting and have been for last 16 months (in the same place).
Thinking about purchasing own home, however, we came to QLD with only little funds, which has soon diminished. So have no deposit to put down. We both work full time, with minimal outgoings (car loan, general living expenses).

Has anyone been able to get a mortgage, with first time buyer grant only being used as a deposit?

Thanks

Re: Home Buying...
 

People did that in the past but I don't think banks will lend 100% these days (the 10K grant really just pays for 'costs'). Best bet is to speak to a mortgage broker, they will know if there are any lenders willing to do this.

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Re: Home Buying...
 

Queensland government is currently offering a bonus for building a new home: add that onto the first homebuyers grant and I have seen ads on tv where one company is offering a 'no deposit' house and land package deal by using those grants as the deposit. You would have to buy a new home (which I assume means waiting for it to be built!) and would obviously be very restricted as to where you could live.

Sorry I can't be more explicit - I just remember seeing the ad, not any details about it.

The fact that in 16 months your savings have decreased rather than increased doesn't bode well for your ability to service a loan.

Re: Home Buying...
 

Our experience recently has highlighted the severe lack of 100% mortgage, we used an excellent broker (pm me for details, I don't think I'm allowed to advertise) but our broker secured a 95% mortgage, we used the FHOG but you still need approx 11% of purchase value in cash, to cover costs such as Lenders Mortgage Insurance and conveyancing etc - LMI is needed by most banks if borrowing more than 80%.

If I was in your position, I'd make an appointment with your local branch of your bank account. They can help put together savings schedules and goals - you perhaps may wait but eventually you'll get to the position you want (with a degree of commitment and focus :fingerscrossed:)

Good luck, it's a lovely feeling, knowing you've worked hard for something and got your own home!

Re: Home Buying...
 

The bank owns your home .... sorry couldn't resist.

Re: Home Buying...
 

Thanks KJCherokee well the savings we have are in the 'emergency fund' pot, so don't want to use if we can help it. Thanks for the info BTW. :thumbup:

@ Beoz - you are correct. In life we just borrow things anyway as we can't take them with us when our time is up :lol:

Re: Home Buying...
 

Right, so you both work full time with little outgoings? How about save up for a deposit? Renting is far cheaper than buying in Oz, if you can't save for a decent deposit now then quite frankly, you'll be stuffed with a home loan.

Banks are clamping down on lending because the housing market is dropping and overvalued so they aren't in lending with no deposit down.

Re: Home Buying...
 

I hate to point this out but if you can't save a deposit even with minimal outgoings then you can't afford to buy.

Re: Home Buying...
 

how do you know their circumstances, i havnt saved a deposit due to spending all funds setting up, this includes all spare income up untill now, they could be the same,

Re: Home Buying...
 

I thought the first home buyer grant was scrapped now, did I imagine that:confused:

Re: Home Buying...
 

We are in/have been in a similiar position for the last 4 - 5 years, at times i have thanked god i havent bought when things got tricky.

We are currently on our way to a reasonable deposit and happy to rent for another year until we are at our goal (I also want to sit tight and watch the market).

Nothing wrong with renting, make it work for you!, However i know how shit it can be renting, with the hidden stresses (pm me for details, lol).:)

Re: Home Buying...
 

If you both work full time, with minimal outgoings, then why would you want a 100% mortgage??!! why not save for a couple of yrs to get a good deposit ?!! Seems crazy to me that anyone would want to take out a 95% or 100% loan on a principle place of residence.

Re: Home Buying...
 

We are looking at the same thing (if we decide to stay in Australia). We did have savings but a sudden death in the family wiped them out, but at the same time we have found our dream house after 2 years of looking so wouldnt want to lose it in the year it will take to resave a deposit. We will decide end of the month if its here on a 100% mortgage or back to the UK where we will rent while we save a deposit there as 100% mortgages are effectivly dead there.

There are lenders that do no deposit loans. You will pay a higher rate of interest, but a couple of years down the track you can swap lenders.

Some actually offer over 100% in order to include the legal fees and things in the loan.

Google no deposit mortgage and you will se a range. If you can scrape together 5% deposit then Comm bank have a mortgage thats very reasonable.

Re: Home Buying...
 

If you have a mortgage of more than 80% you also have to pay some sort of protection insurance which protects the mortgage company against you defaulting on the loan. Sorry I can't be more precise on details.

BB

Re: Home Buying...
 

From memory it's 1.5% on a sliding scale and cuts out past 20% deposit. (something like that)