Taking care of Low Deposit Loans for Perth’s first home buyers is something we often so there’s a good chance that we’ve seen your situation before and can help make it easier for you.
There’s the potential to save thousands of dollars with Keystart government assisted finance because they require lower deposits than the banks without the need for mortgage insurance.
Keystart home loans was set up by the WA government to help West Australians achieve home ownership when they couldn’t obtain finance through the mainstream lenders. The program includes deposit size and other major benefits such as no requirement for a mortgage insurer, something other lenders have with any lending over 80% i.e. A despot of less 20%. Keystart currently lends up to 98% of the value of the house and land package or property price if purchasing an established property.
Other forms of lower deposit lending comes from the mainstream banks. Most lend up to 95% of the value of the property or house and land package. These loans require mortgage insurance by the banks because they are deemed a higher risk.
Mortgage insurance premiums can sometimes be capitalised to the loan, meaning the purchaser doesn’t have to pay the premium up front and can spread it over the term of the loan. Mortgage insurance premiums can range from $0 - $12,000 on average.
If you’re in Perth, planning for your first home and unsure about the deposit you can raise, contact the first home buyer team at Iconic and we’ll give you the benefit of our experience.