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Media Releases
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| -- WHY RENT-WHEN YOU CAN OWN YOUR OWN HOME? -- |
| Comment by Finance Consultant Les Scott |
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Why Rent when you can own your own home is a question regularly asked of people renting a home. The answer often is -we do not have enough or any savings. Well the good news for those renting is that some lenders are now being a bit more considerate when it comes to a savings record and will lend up to 100% of the value of the home-some even more. This is particularly good news for first homebuyers who can then use the $7,000 First Home Owners Grant to meet costs associated with the loan and home purchase.
The usual requirements to obtain a home loan are:
1. Employed with the income to service the loan.
2. Good credit history.
3. Savings of 5% of purchase price.
If all three of the above criteria are met homebuyers have the widest choice of lenders and loan products to choose from. However in these recent initiatives with lenders dispensing with the savings requirement while the number of lenders is limited someone paying rent with little or no savings can in fact purchase their own home.
In these “no savings loans” the other criteria of employment and good credit history become the key elements in having a loan approved. The employment needs to be sound in terms of the term and status i.e. full, part time or casual. A good credit history is always important for any borrowing. There is nothing wrong with having loans or creditcards as long as they have been well maintained. In cases where a potential homebuyer has a blemish on their credit report provided the debt has been repaid and a suitable explanation can be provided for the default lenders may still consider the loan application.
Lenders considering loans with no or limited savings also take into consideration the rent payment history of homebuyers. Statements from Real Estate Agents or Bank statements showing regular rent payments can be important in having a home loan approved. Lenders now are also taking into consideration sale of assets, gifts, an inheritance and the $7,000 First Home Owners Grant as a deposit. The current stable housing market with stable home loan interest rates and competitive home loan products have created a good opportunity for young people to buy their first home. Anyone considering buying a home can contact us anytime by phoning 07 3288 6400 for an obligation free discussion on home loans. |
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Les Scott is a principal in Les Scott and Associates-Home Loan Specialists
Phone 07 3288 6400, mobile 0427 064 650, Email:les@homeloanspecialists.net www.homeloanspecialists.net |
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