Buying PPOR with minimal deposit

Hey all, looking for some advice.

Currently in the market as a FHB and looking to purchase a modest PPOR for around $280k - $290k with a 95% LVR using $9k FHOG. My problem is that I don't have enough savings to cover the shortfall for deposit (factoring in Stamp Duty, Mortgage Insurance, Loan costs and Legals). I have $75k tied up in shares that I'm not keen on selling just yet.

What options do I have other than to wait and save?

Rgds,
Rob

 

Not sure on the technicalities of this but getting a margin loan against the shares to then use the cash to put for extra deposit? Not sure how that would work security wise with the bank/institution though.

 

I'd sell the shares.
You'll be saving at least 6% in interest (which is like a 9% guaranteed return before tax)

What shares are they?
IMO the share market will probably go sideways for a loong while
so if I can get a guaranteed return of 10% now I'd take it.

You will not only save interest but if you put down 20% you will not need to may mortgage insurance so you save that way as well.

Or you can wait until you have a bigger deposit

 

Rob,
For a $290k property in Vic, with PPR concession stamp duty and costs are just on $12k. There are not many lenders lending 95% anymore unless you are an existing customer (it could be a credit card or savings account). As it will require LMI (<80%) the insurers are wanting to see genuine savings. The $75k share should qualify you for that.

Minimum deposit will be around $29k to $32k depending on lender and LMI costs. LMI is normally added to the loan so it is not directly funded by you upfront. FHOG of $9k assists and you could sell some of the shares to make the difference. You can see the advantage of FHB's 8 months ago taking advantage of the Boost and Bonus on offer.

The other option is look at family support by way of a guarantee, different lenders use different methods but the main lenders do offer the family guarantee/pledge option, normally provided by parents.
Let me know if I can help.
Good luck
Greg