How Much Can I Borrow with 10% Deposit?
Conventional home loans require three months of bank statements, payslips, and a 20% deposit. Things have changed in the lending industry. Non-bank lenders such as Mortgage House work with applicants who provide low financial documentation, have bad credit, or can only provide a 10% deposit.
Lenders look at the loan to value ratio when assessing mortgage applications. The preference is to lend at an 80% LVR. This means that the applicant provides a 20% deposit. If the applicant only provides a 10% deposit, this raises the LVR to 90%.
A 90% LVR is a higher-risk home loan. Applicants who have a stable job, a positive credit report, low existing debt, and strong income can qualify for a 90% LVR mortgage.
The amount you can borrow depends. Some lenders will finance up to $1 million at a 90% LVR for well-qualified applicants. But the exact amount varies from one applicant to another.
Mortgage House loan specialists employ innovative tools that help them assess applications efficiently. Once they complete their evaluation, the team speaks with you about the amount you can borrow.
To gauge the home loan amount, consider using our online home loan calculator. It’s free and helps the applicant start putting together their finances. It’s great preparation for the application process.
Borrow with a 10% Deposit Conclusion
Mortgage House works with homebuyers who can put down a 10% deposit. Our loan specialists have tools that help them reach the best loan terms for each applicant. For more information, contact our team.