Is a 100% home loan a good thing for you?
There are a number of things to consider before you take out a 100% or 105% home loan. Borrowing 100% or 105% of the homes value can be a great way to get in your first home. But there is a downside, generally the interest rate is considerably higher than what it would be if you had a larger deposit. Here we look at 100% and 105% home loans and how they can benefit you and also some of the pitfalls of taking out such a loan.
DOMDocument::loadXML(): Start tag expected, '<' not found in Entity, line: 2
Looking for a great value home loan with super fast approval?
Get Pre-Approval online & get a response in minutes with MyRate. What is a 100% home loan
Loan valuation ratio (LVR) is calculated by dividing a loan amount by the property's value. For example if you have a $800000 home loan and your home is worth $1000000 then you loan valuation ratio is 80 percent. So, with a 100% home loan you are borrowing 100% of the home loans value, meaning you need no deposit. Generally loans with a higher LVR command a higher interest rate.
Lending organisations encouraging debt
Many lending organisation may be very willing to provide you with the funds to get you into your home by lending you 100% or 105% of the total value of the home. Lenders today are often criticised for lending excessive amounts in the fear that home buyers cannot sustain such high debt levels. Should interest rates rise, home buyers with significant levels of debt could face the prospect of the bank foreclosing on their house. Each lending institution has its own criteria for approving debt levels, depending on which lending institution you apply for you may find you are approved or disapproved for a 100% home loan.
DOMDocument::loadXML(): Start tag expected, '<' not found in Entity, line: 2
Digg this Post page to del.icio.us Post page to Furl
Home Loan Info.com.au
Bookmark this site!
Featured Home Loan Information
If you are looking for information about a Canberra home loan, you have many options available to you when it comes to choosing your home loan. Here are just three home loan options you will have when seeking finance for your new home in Canberra.
When house hunting in Brisbane, there are a number of home loan options available to today's home purchaser. Fixed, variable or split rate home loans, the list goes on, but where to start? Here we take a look at some of the options to help you find the perfect home loan in Brisbane.
Buying a new home can be stressful at the best of times, but buying a house at auction can be doubly stressful. Here we look at some of the issues you will need to consider when buying your dream home at auction.
While Hobart's housing market is strong, housing affordability has actually improved throughout 2006. Therefore, this improved housing affordability provides the perfect opportunity for new home buyers in Hobart to get into the property market before house prices rise further. Here are some tips for first home buyers in Hobart on home loans and the First home Owners Grant.
Over the past decade, Australian property owners have developed a love affair with renovating and redecorating their homes. If you need any evidence of this, then you just need to turn on the television to find a wide variety of home decoration and renovation shows. So, how do you get the funds to pay for your own home renovations? You can start with a renovation loan. Here we look at the options available for renovation loans.
