What to consider when buying property with a 5% deposit.
Too risky, not possible, not worth it? Think again. If you satisfy the below requirements you may be eligible to borrow 95% of the purchase price of your home.
Have a clear credit history.
It is a legal requirement that banks lend to only those who are in a position to pay back their loan, therefore will ask to see your credit history. It is part of their responsibility in ensuring that people do not become overwhelmed and default. This record will need to be provided by one of the main reporting agencies and will need to be spotless.
If you’re a doctor or accountant good news!
These positions are deemed more stable and at less risk of leaving you jobless.
A long stable history of working in well paid positions will also work in your favour.
To demonstrate that while it may take you a little while you WILL pay off the loan a bank may request to see your bank statements from the few months prior to submitting your application.
They will be looking for dedication and consistency when it comes to saving patterns ensuring that you have what it takes to put away the $$$ month after month.
To qualify you will need to be purchasing a regular property.
This includes a house, townhouse, unit or vacant land.
You will also be required to purchase a home in a major city or town.
This is because these areas are more in demand and if you’re at risk of defaulting homes in these areas can be sold much easier.
These requirements work on a case by case basis so if you have any questions click here to speak to a Shore Financial broker.