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Home Loans Adelaide arrow First Home Buyer arrow What Deposit Do I Need?

What Deposit Do I Need?

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Recently there have been some changes to the way lenders will lend out money, to obtain a loan with only 5% deposit has become much harder and the going concensus from lenders is that they want 10% deposit, depending on the lender these funds can come from many sources.
Whatever your deposit, and whatever loan you choose, it’s important to understand all of the fees, rates, and conditions of your loan. That’s where Eadon Homes Loans can help.

 

Mortgage Insurance

You may have to pay Mortgage Insurance when buying a home. This is insurance the lender requires you to purchase to cover them in the event that you (the borrower) default on the home loan and the property is sold for less than the outstanding amount on the home loan. Most mortgage lenders require this insurance if you are borrowing more than 80% of the value of the property. For lo-doc and no-doc loans, Mortage Insurance may be required for home loans of 60% or more. Remember, lenders’ Mortgage Insurance covers the lender, not you.

 

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