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Low Equity Home Loans

Our mortgage brokers could help you to borrow up to 95% of the value of a home.

The days of the 100% home loan are over (for now).  This page is dedicated to buyers with a modest level of equity or savings who want to buy a home. 

History tells us that property increases in value over time.  Sometimes the increases are dramatic and sometimes the market is static, or negative for a short while. 

For most people, owning a home is how we invest in our future.  The characteristics listed below are important in determining whether or not a low equity home loan will be available.

If you can say "yes" to all of the following then we should be able to help you.

 

Stable employment and income

Salaried employees and wage earners will need to demonstrate at least 12 months history with their current employer. 

Business owners and self employed will need to show at least 24 months trading history backed up by financial statements. 

Variable income sources like commissions, bonuses and overtime are often discounted in the debt servicing calculations that we will perform. 

 

A good ability to service a home loan from your household income

Generally banks and other lenders require that part of their loan is repaid rapidly, which means that a greater than normal level of debt servicing will be required to meet their lending criteria. 

Unfortunately, it is not practical to provide the various models here.  Nor is it possible to be precise with what level of income you will need to qualify, because individual circumstances vary and every case is different. 

To use a 'rule of thumb' we recommend that your home loan does not exceed 4 times your household earnings. 

 

Unblemished credit history

This speaks for itself. 

A single minor debt collection may be acceptable. A history of debt collections will probably rule you out of a low equity home loan.  

 

A record of savings

Unfortunately the boundaries here are blurred so it is difficult to be precise. 

The 'rule of thumb' is that 5% genuine savings will be required, but exceptions might be made in some cases for a mixture of gifted and saved deposit. 

 

Minimal other debts, including credit card debt

Student loans are excluded from our definition of other debts.

The criteria relating to other debts is subjective but, as a rule, buyers should not have any other debts or hard-core credit card exposure.  Occasionally, it is possible to help buyers with other debts of up to $10,000 but this is the exception to the rule.  

 

If you have any questions

We hope the information above helped to answer some questions for you, but we also understand that sometimes you need answers which are specific to you. 

We are always happy to answer your questions and the more information you can give us the better our answers can be. 

The best thing to do is apply to get pre-approved.

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