Are 95% mortgages only for first-time buyers?
Contrary to popular belief, 95 mortgages are not only for first-time buyers, but for all buyers that qualify and apply! It is heavily advertised for first time buyers in the Australian housing market, and it makes sense as to why!
Paying 20% on a home for a deposit is the norm and what most lenders and banks aim for. However, not everyone can save for a 20% deposit easily. For instance, an average home in Australia can cost approximately $500,000. If you take 20% of $500,000, that is approximately $100,000. The average household can take decades to save that much money and that is not including exit fees or extra charges due for signing a mortgage.
With a 95 mortgage, the government allows banks to cover 95% of the sale of a home. The remaining 5% is to be paid by the homebuyer. This smaller percentage is easier to achieve and takes less time overall. However, since only 5% of the home loan is taken care of, this means that the repayment amount each month is relatively high.
Mortgage House offers potential home buyers many different types of mortgages. These mortgages are quick and easy to apply for, as long as a person has a credit score as well as a deposit.
95% Mortgages For First Time Buyers Conclusion
A 95% mortgage is a great option for a first time homebuyer that is still saving for upgrades and repairs. However, 95% mortgages are not only for first time homebuyers. Mortgage House lending specialists can assist interested homebuyers in the applicant process.