The No Deposit Home Loan
Political debate in Australia has recently focused on how difficult it is for new home buyers to move from renting, or living with their parents into their own home. Now their dream can come true!!
How you can buy your 1st home with less than $1000 in the bank!
Interest Rates From 7.54%pa* Fixed For 1 Year
1st Home buyers are eligible for First Home Owners Grant (FHOG) of $10,000.00 up to $15,000 (C.A)
Example:
- Purchase Price $280,000.00
- 2 applicants, 1 child
- Income applicant 1 $45,000
- Income applicant 2 $20,000
- Gift / savings $1,000
- Stamp duty and Government Costs $13,323.00 (Based on Stamp Duty in Victoria)
- Loan fees $ 975.00 Application fee, Valuation fee & legal fees
- LMI $ 6326.00
- Total required for purchase $300,624.00
- Loan amount $280,000.00 including capped LMI of $6326
(Incorporated is a Line Of Credit of at least $20,000) plus
- FHOG $10,000.00 (Advanced at settlement) plus
- Secured Visa Credit Card of $10,000.00 with the rate tied at the LOC rate for Life of Loan currently 8.3%pa
(Advanced at Settlement for costs)
- Gift/savings available $1,000.00
- Total Funds Available at Settlement $301,000.00
This is a scenario that has worked for hundreds of applicants who have as little as $1,000 cash in hand but have stability in employment and a clean credit history.
Note: * First year fixed at 7.54%pa;
Then at the variable rate @ 8.15%pa
The current Standard Variable Rate is 8.32%pa
Average rate over first 5 years would be approx.8.03%pa.
Repayments for year 1 =
- Principle and Interest loan of $260,000 = $1,825.09
- Principle and Interest LOC of $20,000 = 230.50
- Credit Card full drawn at $10,000 @8.3% = 315.00
- Total = $2,370.59 per month = $547.09 per week.
Loan 1 is paid off over 30 years;
Loan 2 is paid off over 25 years; and the
Credit Card would be paid off in 3 years.
Repayments for years 2 and 3 =
- $260,000 @ 8.15%pa = $1,935.05,
- Plus LOC and Credit Card,
- Total = $2,480.55 per month = $572.44 per week.
Repayments thereafter, starting year 4 =
- $260,000 @ 8.15%pa, and = $1,935.05
- P. and I. LOC of $20,000 @ 8.3%pa = 230.50
- Total = $2,165.55 per month = $499.75 per week.
NOTE: Both the LOC and the Credit Card can be redrawn at any time, causing these repayments to change.
Terms, conditions, fees, charges and full lending criteria applies and are subject to change without notice.
All information is correct as of 24th August 2007. Information above is an example only and does not necessarily represent your situation.
Any questions contact:
William MacLean, Finance and Wealth Strategist,
MacLean Finance Pty Ltd,
5 Ruby Street, Burwood East, Vic., 3151
03 9802 0211.
Own Your Property, Love Your Loan,
Secure Your Future Wealth!”
