2008.12.15 09:07:57
Even though ANZ, National, ASB and Sovereign have officially limited lending to 80 per cent of a property’s value, this doesn’t mean first-time buyers must delay their dreams while they save the rest.
Back in Australia this was the norm when I started mortgage broking yet this did not stop the determined from getting a home.
“There are still a couple of mainstream lenders out there that will lend 95 per cent, and there are other ways to get the deal over the line.
One way is to see if the vendor will leave funds in the property subject to a second mortgage to be repaid within an agreed period, a form of loan called vendor finance, which is enjoying a resurgence in the current credit conditions. Currently Hot Property Investments has a couple of properties where this is possible.
First-home buyers could also ask their parents to raise the deposit against their own property. This won’t cost parents anything provided the kids can meet the mortgage repayments on their behalf.
First home buyers could also secure their new purchase against their parents’ property, the bank will cross-collateralise the loan against both properties, so in this case the parents also become liable to repay the loan if anything stops the kids from paying.
Hot Property Investments has some great cash-flow positive properties that will make perfect first investments. With interest rates at record lows and property prices sitting at levels not seen for years this is a great time to buy.
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