95% Home Loans

What is a 95% Home Loan?
A 95% Home loan is a loan where the lender lends up to 95% of the value of a property. 95% Home loans are generally only available for property purchases, although there are some lenders that may also offer this type of loan for a dollar for dollar refinance.
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How much deposit do I need?
You need enough deposit to cover 5% of the purchase price of the property plus the purchase costs. The exact amount of deposit required to obtain a 95% loan is dependent on factors such as the following:
Please contact us to find out exactly how much money you need to purchase a home. We have access to calculators that can determine this based on the purchase price.
How do I Qualify for a 95% Home Loan?
To Qualify for a 95% home loan it is recommended that you have:
How much do I need to pay in Lenders Mortgage Insurance (LMI) on a 95% loan?
As soon as you borrow more than 90% of the property value the LMI premiums jump considerably. The premium is dependent on 2 factors, the loan amount and the Loan to Valuation Ratio (LVR). The higher the loan amount and the higher the LVR the higher the LMI premium rate will be.
On a 95% loan the LMI premium can range anywhere from 2% to more than 4.5% of the loan amount, depending on the loan size.
There can be significant differences between the LMI premiums charged at different lenders, particularly where the loan amount is in the $500,000 to $600,000 range.
When suggesting loan option we look at the interest rates of the loans but also look at the LMI premiums. If you can save thousands of dollars in LMI this can more than offset a slightly higher interest rate.
What is the maximum loan amount available for a 95% loan?
Generally, most lenders will allow a maximum loan amount of $700,000 to $1,000,000 on a 95% home loan.
We do have access to one major lender who can consider 95% loans of up to $2,500,000 for very high income applicants in a strong financial position.
What are the interest rates on a guarantor home loan and how do I apply?
To discuss your options please call us on 1300 66 12 11 or contact us online.
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