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100% Home Loan

If you’re sick of renting and want to own your own home, Mortgage One has lending solutions to help you enter the property market sooner.

Mortgage One would like to take this opportunity to introduce the 100% Home Loan. 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

Michael (24) and Christie (22) are both working full time. Michael earns $45,000 p.a. and has been working with his employer for 9 months after graduating from university. Christie has just finished a 4 year apprenticeship with her employer and is now earning $35,000 p.a. They have both managed to save $6,000 and are paying off a credit card debt of $3,500. Michael and Christie 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
Registration of Mortgage:	$70
Total Cost of Purchase:	$403,250

The 100% Home Loan allowed Michael & Christie to borrow 100% of the purchase price of their property. However as with all loans, they will need to pay an application fee, stamp duty on the mortgage and Lenders Mortgage Insurance as they are borrowing over 80% of the purchase price.

100% Home Loan	$400,000
Less: Lenders Mortgage Insurance	-$10,800
Less: Loan Application Fee	-$750
Less: Stamp Duty on Mortgage	$0 First Home Plus Scheme
Net Loan Proceeds	$388,450

The total cost of Michael & Christie’s home purchase was $403,250 and the net loan proceeds provided by the bank is $388,450 which means they will need to cover the difference of $14,800. This is achieved by combining their savings with the First Home Owners Grant and small gift from Michael’s parents of $3,000.

Cash Saved	$6,000
Gift from Parents	$3,000
First Home Owners Grant	$7,000
Total Cash Available	$16,000

Michael and Christie were able to secure their home, with a saved deposit of $6,000, and the ability to demonstrate a stable employment history and income to service their loan.