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Family Equity

Mortgage One would like to take this opportunity to introduce the Family Equity. This product has been designed to help people with stable employment, commendable rental record and clean credit history to purchase a home with little or no deposit requirements.

Here’s Living Proof

Mathew (25) and Sandra (22) are both working full time. Mathew earns $44,000 p.a. and has been working with his employer for 5 years after completing his apprenticeship. Sandra has just finished university and has been working as an Accountant for the past 12 months with her employer and is now earning $36,000 p.a. They have both started saving for their wedding and are paying off a car loan of $15,000. Mathew and Sandra both qualify for the First Home Owners Grant & First Home Plus and have found a property they would like to buy for $400,000, so how did Mortgage One help them?

Purchase Price:	$400,000
Conveyancing Fees:	$1,000
Disbursements:	$300
Building Reports:	$450
Pest Inspection Report:	$300
Council & Water Rates:	$630
Building Insurance:	$500
Stamp Duty on Purchase:	$0 First Home Plus Scheme
Stamp Duty on Mortgage:	$0 First Home Plus Scheme
Loan Application Fee:	$750
Registration of Mortgage:	$70
Total Cost of Purchase:	$404,000

Mathew and Sandra’s income was sufficient to qualify for a loan of $404,000, however as Mathew & Sandra did not have any savings they did not qualify for Lenders Mortgage Insurance and hence the maximum they could borrow was 80% of the value of the property they wanted to buy, $320,000.

Family Equity allowed Mathew & Sandra to borrow the additional $84,000 they required by using Mathew’s parents as guarantors. Mathew’s parents Bill (54) and Mary (48) provided a guarantee supported by a mortgage over their home for $84,000 to cover the shortfall.

	Market Value	Loan Value Ratio	Loan Amount
Mathew & Sandra’s Property	$400,000	80%	$320,000
Mum & Dad’s Property	$650,000	13%	$84,000
			$404,000
First Home Owners Grant			$7,000
Total Cash Available			$412,000

Mathew and Sandra were able to secure their home, by demonstrating a stable employment history and income to service their loan and from some help from Mum & Dad even though they had not saved a deposit themselves.