Buy your first home sooner and save on mortgage insurance

With 101 not only can you borrow the full purchase price (or valuation if lower), but you can also save thousands in mortgage insurance costs.

A guarantor (parent/s of the applicant/s) simply needs to provide the lender with a limited guarantee supported by either a first registered mortgage or in a limited number of circumstances a second mortgage over their property, for the amount you need to borrow over 80% of the property value, and you won’t be charged a cent in lender’s mortgage insurance.

SCENARIO

The Problem: Michael wants to buy his first home for $350,000. He would like to borrow $372,500 to cover the purchase price of the property, the associated costs, and consolidate a personal loan. He doesn’t have any savings, but his parents, who own their own home, are willing to help.

The Solution: The 101 option means Michael can borrow the amount he wants to, with the support of his parents and a limited guarantee of $92,500 secured by first mortgage over their home. After considering the range of 101 home loans available, Michael chose a Pro Pack because of the discounted rate and money management facilities it offered.



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