The mortgage market has tightened up somewhat, but provided you have strong income and a stable job history or no debts, then 95% is still an option for you.
We now have four or five different options if you are borrowing over 80%. In all instances they only apply to people with decent incomes – household incomes over $80,000. Between 80% and 90% is fairly easy provided the income is there. Above 90% does become expensive (allow for up to a 3% one-off upfront fee) and the lenders do get more fussy.
Account conduct and your ability to repay debts also becomes important the less deposit you have. We need to demonstrate three months of “good behaviour.” Above 80% your account conduct needs to be impeccable.
Don’t bother applying if you have no deposit or less than 5%. I’m amazed by the number of people who still apply with not even the remotest deposit saved. Without a 5% deposit you could be the Prime Minister and you still wouldn’t get a mortgage.
Preapprovals
Unless you’re a saint, we cannot get preapprovals from lenders above 90%. At this level of borrowing we can give you a good indication of your likelihood of being approved. Before we approach lenders we need a sale and purchase agreement (with a ‘subject to finance’ clause.)
Who are we?
About us
Squirrel is an independent mortgage broking and advisory business. We are happy to help you get the best out of your mortgages whether that is buying property, refinancing or simply restructuring everything to make it work better. If you are buying a new home then you can apply online with us and we’ll save you a bucket load of money, time and stress. Sign up for our free newsletter and get emailed our latest mortgage advice and insights on the housing market.
