97% LVR Home Loans

97% LVR Home Loan

97% LVR home loans are available for most people looking at buying their home. These high LVR property loans come from a range of financial institutions and lenders operating in Australia. Best of all having a 97% LVR home loan allows you to enter the property market with minimal deposit in a time of rising house prices.

97% LVR Home Loan

What deposit is required for a 97% LVR home loan?

For a 97% LVR, you will still need to show 5% savings. The savings can come from a variety of sources. This can include:

  1. Savings over 3 months
  2. Rental history over 12 months
  3. Lump Sum deposit
  4. Sale of asset
  5. Cash savings
  6. Inheritance
  7. Gift deposit
  8. Redraw in another home loan

Which lenders offer 97% LVR home loans?

There are several lenders offering 97% LVR home loans. It is worth mentioning that different lenders have different policies, and therefore have different requirements for this type of loan to be approved. Your mortgage broker can show you the difference in lender pricing, policy and procedures.

Are 97% LVR home loans more expensive?

97% LVR home loans are NOT more expensive that normal loans. In fact, in many cases, 97% LVR home loans can be done at normal interest rates just like a loan at a lower LVR. With a dynamic and competitive home loan market in Australia, a good mortgage broker can help you choose the cheapest and most flexible lender who offers a 97% LVR home loan.

97% home loan

What is the cost for a home loan at 97% LVR?

The set up costs for a 97% LVR home loan are the same as a normal type of loan for most lenders we use at Mortgage Providers. The only difference in the cost will be a slightly higher lenders mortgage insurance (LMI) premium as a result of the high LVR borrowing. It is important to remember that different lenders have different LMI charges, and whilst choosing a 97% LVR home loan, you must also choose the lender with the cheapest LMI. For more information, please refer to Compare Lenders Mortgage Insurance.

What types of loans are available at 97% LVR home loans?

The home loans which you can obtain at 97% LVR include:

  1. Basic home loans
  2. Standard variable home loans
  3. Professional Package home loans
  4. Fixed home loans
  5. Refinance home loans
  6. No Genuine Savings loans
  7. Construction loans
  8. Vacant land loans
  9. Probation home loans
  10. 100% Offset loans

Can I borrow more than 97% LVR?

Yes it is possible to borrow over 97% LVR using up to 2 home loan lenders and mortgage providers. The criterion is very similar to a normal loan, with an ability to borrow up to 100% of the purchase price in certain circumstances with 1 particular lender. You will still need to show a deposit of up to 5% in genuine saving or equity for this loan. This policy can come in handy if you had to pay stamp duty, or consolidate some personal debts simultaneously during the property purchase.

At Mortgage Providers, we know who the 97% LVR home loan lenders are. We can package the 97% LVR mortgage with different lenders and tailor the most flexible and cheapest package to suit your needs.