Buy your First Home with LESS THAN 20% Deposit

Why a 20% benchmark?

There is a good reason why 20% is seen as the ‘ideal’ deposit.

If you borrow more than 80% or more of your home’s value, you will be asked to pay lenders mortgage insurance (LMI). You may have heard of this – it’s a type of insurance that protects the lender (not you) if you are unable to keep up the loan repayments.

Unlike normal insurance, LMI isn’t something you need to shop around for. Your lender will arrange it, and it involves paying a one-off premium when you take out a home loan. The bigger your deposit, the less you pay in LMI. You may be able to add LMI to your loan, which lets you pay it off over time instead of having to pay it up front when you take out your home loan.

What about other costs?

You’ll need to consider other things like stamp duty and legal fees. Be sure to factor these expenses into your home buying budget.

How about NO REPAYMENTS til the end of Construction?

That’s right – Jazz Homes is offering no interest or repayments until the end of construction of your new home. We will fund your build, all you need is an approved loan for the contract amount and a minimal deposit and we will take care of the rest. This offer is available on selected packages.

Other solutions to get you there?

Many first home buyers enjoy a helping hand from their family to get across the deposit line. That doesn’t mean your parents have to provide a cash hand out. Family members can act as guarantor for all or part of your home loan, and this can also be a way of avoiding the cost of LMI. It pays to get good legal and mortgage advice, so you know what your options are and how you can get in the property market sooner!

If you would like any further information please contact us via admin@jazzhomes.com.au