First home buying with a lower deposit
Max and Louise were looking to buy their first home, but as a young couple going through university, they didn’t have enough savings to be able to make the 20% deposit for a home loan.
Establish a guarantor home loan
Avoidance of having to pay Lenders Mortgage Insurance
Purchase of a property with lower mortgage repayment
Our Proposal
After having discussed different ways they could approach getting a home loan, we decided that due to their strong relationship with Max’s parents, a guarantor home loan would be a safe and logical option for the young couple. The benefits for Max and Louise were that by getting a guarantor home loan, they did not have to pay Lenders Mortgage Insurance (LMI), which meant they could focus on making additional loan repayments given their lower costs. Furthermore, their lender was reassured that mortgage repayments would be covered as they could demonstrate a clear commitment to their existing loan facilities and rent paid previously, meaning that the lender was happy to approve their loan.
The Outcome
Max and Louise were able to get into the property market far sooner and have their own place to call home without having to save a large sum of money. Furthermore, the savings on Lenders Mortgage Insurance (LMI) was significant at around $15,000, giving them a better and lower mortgage repayment.
