Alan Stott

BANKS & MORTGAGE INSURERS MAKE IT HARDER TO BORROW!

YES....IT'S TRUE! 

Despite the grate success of the First Home Owners Grant Boost, the Banks and Mortgage Insurers have changed their lending policies and have reduced the maximum we can borrow to 90%, and now require all borrowers to have a minimum of 5% genuine savings. The borrower must evidence the prescence of these funds in their account for at least the last three months.

I still have access to very limited 95% lend products, but the borrower must fit strict criteria.

I also have a very useful 98% lend product, where the lender does not charge the borrower lenders mortgage insurance. Again, strict criteria exist in terms of debt ratio's, maximum joint incomes of $120,000pa and a maximum purchase price of $412,000.

For FREE ADVICE call me to find out how we can help you with your new borrowing requirements.

FIRST HOMEOWNERS GRANT BOOST TO CONTINUE!

The industry is breathing sighs of relief after the government revealed it will be extending the boost to the First Home Owners Grant (FHOG).

Speaking at the official announcement of the federal budget last night, Treasurer Wayne Swan said that since it was introduced, the boost had "supported employment and helped 59,000 Australians buy their first home."

He went on to say that in light of the continuing global uncertainty, and the success of the initiative, the government would extend the boost for a further six months, with a reduction coming into place for the final three months..

Going forward first homebuyers will be eligible to receive the full boost of $14,000 for established and $21,000 for new housing until 30 September. After this date, $14,000 will be offered for new homes and $10,500 for established homes for the three months to 31 December.

The move has been applauded by the industry.

This will give First Home Buyers an opportunity to save a 5% deposit over the next 3 - 6 months so as to meet lenders' requirements that borrowers now have a 10% deposit of which 5% must be genuine savings where the loan involves lenders mortgage insurance.

To discuss how you can plan to take advantage of this extension, phone me now on 0400 649 700 or  email alan@beatthebanks.com.au.