See how Mortgage Alternative benefits different buyers
Get on or move up the property ladder.
The following examples give you some insight into how Mortgage Alternative can help buyers to purchase their first or next home.
These are simply case studies and each situation will be different, so please always seek independent professional advice before making any decisions.
Meet Seb and Justine, couple, no dependants
Seb and Justine are determined to get on the property ladder and have been saving every dollar towards a house deposit. They’ve been working full time for several years, with Seb earning $50,000 pa and Justine earning $85,000 pa.
So far they have saved $50,000 (10%) for a house deposit and hope to purchase a house valued around $500,000 which will be big enough to grow with them. They were planning to save a 20% deposit to avoid mortgage insurance. But with a wedding to plan for, they’ve chosen to enjoy the benefits that Mortgage Alternative brings – a lower 4.5% upfront contribution including stamp duty, and no mortgage insurance. They can then use the leftover $25,000 savings to pay for their wedding without going into debt.
Based on their incomes, they can purchase a property up to $500,000 using Mortgage Alternative. If you also have no dependants, take a look at this table to see what value property you might be approved for, based on income levels.
Meet Jake, single, no dependants
Jake has been saving up a deposit for his first home for the last few years, but is some way off saving a 20% deposit to avoid mortgage insurance.
He has a stable job, earning $65,000 p.a. As he has already saved at least 4.5%, Jake has decided to use Mortgage Alternative to purchase a property, as the 4.5% up front includes stamp duty and he can avoid paying mortgage insurance.
Based on his income, he is able to purchase a home valued up to $290,000. So he has his sights set on a two-bedroom home on the outskirts of town.
Our linked table provides details of different income levels and the related property values that a single person with no dependants can purchase. If you too are single with no dependants, this table will help you to gain some understanding of what you may be able to purchase.
Meet Sarah, single, one dependent
Sarah is keen to use Mortgage Alternative to get back in the property market after recently separating. She has some savings that she can use for her 4.5% up front contribution, and her stable job provides an annual gross income of $95,000.
Based on her income and with one dependant, Sarah is able to purchase a home valued up to $450,000. She has found the perfect three bedroom house on the property listings website BuyOrInvest.com.au, where she knows all properties listed for buyers to live in are already approved for Mortgage Alternative.
Our linked table provides details of different income levels and the related property values that a single person with one dependant can purchase using Mortgage Alternative. If you are single with one dependant, this table will give you some understanding of what you too may be able to purchase. More than one dependant? Apply online and based on your specific circumstances, we can advise the maximum property value you will qualify for.
Meet Rafe and Lisa, couple, two dependants
Rafe and his family have lived in their current home for ten years and are hoping to move to a slightly larger home, closer to the city, work, friends and family.
They utilised the First Home Buyer’s Grant with their first home, but it meant living a long way from the city, and the travel costs for Rafe and Lisa to get to work have really added up over time.
With current living expenses, they are strugging to save up a big enough deposit to avoid paying mortgage insurance again on their next home, which they have already paid on their current mortgage.
Based on their current incomes of $95,000 and $50,000, they may qualify to utilise Mortgage Alternative to purchase a home valued up to $400,000. With only 4.5% up front including stamp duty and no mortgage insurance, they will likely get into their next home much faster with Mortgage Alternative.
To find out what value you could purchase a home for using Mortgage Alternative, view this table which is specific for couples with two dependants.