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small deposit? no worries now (again)

Wednesday, April 30, 2014

We've almost done a full circle and some banks are back to offering loans to people with less than 20% deposits.  In fact in one case you only need 5% deposit - but mostly 10% seems to be ok for the right customers...

Of course, the Welcome home loan stopped the gap in the past 6 months, however it is a bit cumbersome to get approved and so I'm thrilled to see the banks come back into this space.  Some wont give us a pre approval over 80% unless you have a house in mind - but some will but its only good for 2 months so you really need to be ready to buy.  AND most of them have dropped the higher interest rates for people with small deposits that made it really hard (nigh on impossible) for the past 6 months.

So what does this mean to you?  Well... judging by the approvals Ive got already these are the things the banks are looking for:

smileyIf you were pre approved before with a small deposit you are probably ok for us to refresh the info and go again

smileyTwo incomes is always better than one - they really want to see strong cashflow

smiley The 10% can be made up of kiwisaver and savings.

smileyExcellent bank account conduct and very little short term debt.

If you only have 5% deposit and very strong incomes one lender will allow a 2nd mortgage over 80% - this is a more expensive option but may suit some people. 

So, if you think this seems perfect for you or it sounds like a good idea but you dont know how it might work for you then give me a yell and we can see what might be the best option.

 Contact me if you'd like to discuss your situation. 027 503 1080 or 03 319 5482.

I'd love it if you passed this on to your colleagues and friends and have an awesome day!



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