First Home Buyers Information
Mortgages are made available as a ratio of the amount lent to the value of the home. This is called home to value ratio (LVR) Generally the maximum LVR is 95% to 97% of the value of the home you buy.
For example, if you purchased a home valued at $100,000 and you borrowed $95,000 the LVR would be 95%.
If your LVR is 80% or more, you will need to show that you have saved 3% to 5% of the value of the home over 3 to 6 month period (plus associated costs such as stamp duty and mortgage insurance) in order to be approved for home finance.
Gifts and lump sums receipts will not qualify as savings. They may be in addition to the 3% to 5% savings to assist with the balance of the deposit and or buying costs
Find out more about