100 LVR home loan

100% LVR Home Loan

In 2013 it is possible to get a 100% LVR home loan from 1 lender in Australia. Post GFC 2008, many lenders pulled back their 100% home loans as many were affected by funding issues. However, today using a particular lender we are able to get you into the property market with a 100% home loan which is underwritten by an Australian Bank.

Lender who offers 100% home loans

There is one Australian bank who offers 100% LVR home loan in 2013. This lender will even lend over 100% LVR for loan amounts under $1,000,000 for the right applicant.

Do I still need a deposit for 100% home loan?

You will still need to demonstrate 5% genuine savings for a 100% home loan. In this case the lender will lend you 95% LVR + the LMI on top up to 100% LVR. There is no restriction on the cost of the LMI which is added to the loan amount. Hence the additional Lenders Mortgage Insurance (LMI) can cost up to 5% and can be added to the loan amount bringing the total LVR to 100%. Hence  becoming a total of a 100% home loan.

The table below illustrates an example of how the funding will work for a purchase of $650,000 in NSW.

Purchase price 5% Deposit required Loan @ 95% LVR LMI Premium Total loan including LMI Final LVR inclusive of LMI
$650,000 $32,500 $617,500 $26,141 or 4.23% of loan amount $643,641 99.23%

How to get a 100% LVR home loan

In order to get this 100% home loan, you will still need 5% genuine savings of the purchase price.  Further you will need to have a stable job with demonstrated proof of affordability and a clear CRAA.

Period of genuine savings for 100% home loan

You will require 3 months genuine savings for a 100% home loan. You could overcome the genuine savings requirement by using equity in another property you own, sales proceeds from another property you sold, shares which equate to the amount of genuine savings required or a term deposit. The money you are using has to be yours for at least the last 3 months with proven demonstrated history.

Borrow over 100% LVR with this home loan?

You can borrow more than 100% LVR using this home loan product. Hence you will be able to get a $20,000 line of credit taking you over a 100% LVR to help pay for your stamp duties and legal costs if you require it to cover any shortfalls. This product is very handy for people who are re-entering the property market and are non-first home buyers and will not receive any government incentives like stamp duty concessions or the first home owners grant.

Interest rates for a 100% home loan

The interest rates offered by this lender for a 100% home loan are the same as a normal type of loan. Hence you will be able to get professional package discount like any other normal loan from a bank.

Loan types for a 100% home loan

You could get all the general loan products with a 100% home loan. These products can include any of the following:

Costs in setting up a 100% LVR home loan

The costs in setting a 100% LVR home loan are the same as setting up a loan at a lower LVR. The only increase will be in the cost of the LMI. LMI charges are more on higher LVR’s than let’s say 90% LVR.

Freebies with this 100% home loan

We have helped organise for potential clients a fuel cash back offer for clients who take up this 100% LVR home loan. Hence you will be able to get a 10c per litre fuel rebate for 2 years if you take up this loan offer.  All you need to do is send in your fuel receipts every time you fill up and they credit the amount you’re entitled to into your savings account!

If you are looking for a 100% home loan, Mortgage Providers will help you get this from the only lender who offers this product on the market. Further we can get you a line of credit from the same lender at home loan rates to help assist you pay for other government charges if they arise or are needed. If you thought you had no chance of entering the property market because you did not have enough deposit and the ability to meet all the other associated costs, then you will be glad you contacted Mortgage Providers. You will be one of our many surprised customers.