If you’re hoping to buy a home this year, the start of a new year is a great time to set some home buying goals, whether that be to save a little more or to cut down on your spending. We’ve put together some New Year’s Resolutions to consider if you’re planning to buy a home in 2020.
What is the Essential Services Package?
At People’s Choice, we’ve created an Essential Services Package to help eligible essential workers with their home and investment loans. As our essential workers keep our communities safe and continue to do this during the COVID-19 pandemic, we wanted to show our appreciation and say thank you.
The package can help with the upfront costs of buying a home. Are you wondering how much deposit you need for a home loan? To avoid paying Lenders Mortgage Insurance (LMI), you generally need to have a 20% deposit, which gives you a Loan to Value Ratio (LVR) of 80%. How much is Lenders Mortgage Insurance? LMI can be an expensive fee and its cost depends on how much you want to borrow and how much deposit you have. The bigger the deposit, the lower the cost of LMI.
With our Essential Services Package, you can borrow up to 90% LVR and we'll waive the LMI fee, potentially saving you thousands of dollars. This will lower the upfront cost of buying a house.
If you do end up borrowing over 80% LVR, with the Essential Services Package you'll be given a discounted interest rate for your home or investment loan. The interest rate for the package is the <80% LVR rate. The maximum borrowed amount is 90% LVR, meaning you’re able to borrow up to 90% of a property’s value without LMI being payable.
The Essential Services Package is for anyone in their homebuying journey – regardless of whether you’re a first home buyer or you already own a property.
What’s the eligibility criteria for the Essential Services Package?
To be eligible, you’ll need to be a registered nurse, fully qualified paramedic, or a sworn in state or federal police officer. You’ll also need to meet income requirements, which vary depending on whether it’s a joint or individual application. For joint applications only one person is required to qualify, meaning you don’t both have to be essential workers.
Our Essential Services Package can be used for an owner-occupied home or an investment property. We have a range of home and investment loans to suit your needs. You can compare them using our comparison tool.
To enquire about our Essential Services Package or get your home loan application underway, please call or email a friendly Relationship Manager.