95% loans are designed to assist people who are looking to borrow as much money as possible against the valuation of the security property. These loans can be used for the purchase of a new home, renovations, debt consolidation or for personal use.

95% loans are suitable for first homebuyers who have proven savings over at least a six month period, but do not have a large amount saved. The lender is generally looking for applicants with a strong employment history and no or few credit problems.

The lender will usually take out loan mortgage insurance (LMI) on these loans and will pass on the insurer s costs to the borrower. This amount will often vary between lenders depending on the amount of the loan, the loan to valuation ratio (LVR) and the insurer the lender uses.

Some common features available are:

• Fixed or Variable Rate loans
  
  


• Extra repayments depending on loan options
  
  


• Only 5% Genuine Savings required
  
  


• Weekly, Fortnightly or Monthly repayment options
  
  


• 30 Year loan terms available