For first home buyers and investors purchasing a property, the most popular choice is a 90% home loan.

There is already equity in the property right from the start and so lenders are more relaxed with the terms of this loan.

You will still need to pass normal credit guidelines and serviceability requirements to secure your mortgage loan.

Do You Qualify for a 90% loan?

In Australia, each bank and the non-bank lender has their own individual set of lending guidelines to evaluate your loan application. The trick to securing your loan is in choosing the lender that is the best match for you.

To Qualify for a 90% Loan You Should Meet the Following General Criteria:

  • The purpose of the loan should be to purchase, refinance or build property. Owner occupied or investment properties are acceptable. Debt consolidation and some other loan purposes can be successful on a case by case basis.
  • You should have a good credit history. If you have a few minor paid utility defaults or other small defaults your application may still be approved; if your application is convincing in other areas.
  • You have to be up-to-date with your current obligations such as rent, credit cards, and personal loans.
    Lenders prefer stable employment. Normally 6 months in your present job or 2 years in a similar job will suffice.
  • Your income should be sufficient to cover the repayments of the loan.

This is Called Your ‘Serviceability’

If you have genuine savings of 5% of the purchase price you will be in good standing with most lenders. Applications with no genuine savings (where the deposit comes from the sale of an asset or a gift) will generally be considered if you have a decent credit history.

So how do you find out which lender will accept your loan? Call us on 1300 55 10 45 or enquire online to speak to one of our mortgage brokers that specialise in 90% home and investment loans.

After we assess your circumstances we can work out which lenders are likely to approve your home loan. Then we can compare the interest rates, fees and the price of LMI premiums and suggest which loan is the cheapest and best suited for your situation.

Although lenders often have similar interest rates for their 90% home loans, there are often significant differences in their fixed rates, hidden fees, and LMI premiums.

We will normally suggest three suitable lenders and then you can choose the best loan for you. Please give us a call on 1300 55 10 45 or contact us online if you would like one of our specialists to work for you.

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Can you get a 90% home loan for over $1,000,000?

The majority of lenders only approve 90% loans up to $1,000,000.

Policy restrictions from the mortgage insurers mean that the only way to borrow more is to have several properties as security for the loan. If you are in an especially strong financial position some banks (that have special agreements with their mortgage insurers) can consider a 90% loan up to $2,000,000.

Some lenders may allow you to borrow the cost of the LMI premium for loans up to $1,500,000 at 90% LVR. While for larger loans, you cannot borrow the mortgage insurance and so your loan will only amount to 87% of the property value after they deduct LMI.

Why can you only borrow 90%?

The majority of Australian lenders limit their maximum loan amount to 90% of the purchase price including the capitalised LMI premium. This is because lenders are worried about the number of first home buyers that have no genuine savings history coming into the mortgage market and the instability this could cause to house prices.

This is also the main reason why many lenders have put a stop to 95% loans and all lenders have stopped offering 100% loans.

This has also because some banks have received more applications than they can ordinarily process. The demand for credit exceeds the supply of funds and therefore banks are stricter with their credit policy in order to lower the number of people loan applications.

Apply for a loan today

CALL US - 1300 55 10 45

Call and speak to one of our Customer Care team on 1300 55 10 45.

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You should seek pre approval before entering into a 90% Home Loan arrangement. The reason is simple, building is a complex excerise requiring good co ordination and technical skills.

Articles for 90% Home Loan

Lenders are aware of the complexity builders face, and the possibility of costs over runs. This comes primarily from in-experience with managing this type of project. Hence most lenders are not generous when it comes to lending at high LVR’s on a 90% Home Loan.

Frequently asked questions

Why utilize or use a 90% Home Loan expert?

How does 90% Home Loan work?

How to maximize your chances of being approved?

It is safe to look for pre-approval before entering an owner builder arrangement. Pre-approval will give you a thought of what your maximum loan will be, which can enable you to decide whether or not its the correct choice for you.

How much can I borrow?

How to apply for 90% Home Loan?

What is Bad Credit?

When you’ve got a bad credit history you’re typically not qualified for a loan from a bank or traditional credit lender. However, there are loan options available. You’ll simply need to show that you can repay the loan by providing evidence of a regular income, whether that’s through employment or Centrelink. If you’re unemployed and require a loan.

How can I get approved for a loan if I have bad credit?

Fortunately, there are lenders out there who look beyond your credit file. These bad credit loan lenders will take into account income, equity and other things that will enable you to acquire an advance.

How do I get a home loan with bad credit?

One of the fundamental factors that will decide whether you will be accepted will be your income and the nature of your bad credit. Typically, if your bad credit was triggered by a life event then lenders tend to be more understanding. However, if you were aware of your bad credit but continually and knowingly made it worse, then lenders may be more skeptical. Regardless, researching your options, attempting to fix up your credit and choosing an expert loan specialist to run with should enable you to get back on track.

Our mortgage broking is second to none. Don’t waste your time and money running around from bank to bank, sifting through ambiguous loan offers only to find they don’t work. Take advantage of our expertise and let us find the right loan or finance to suit YOUR needs.