Hi Mummas,
I’m just after some single mumma tips/advice.
I would like to purchase my own home in the next 6-12 months. I have 3 children, permanent employee. I will have a deposit. I guess I’m after success stories from mums who have managed to get a mortgage. What tips and tricks you think would be invaluable to pass on.
5 Replies
20% deposit is best for anyone buying a house.
Also suggest Barefoot investor
Sometimes (in my case) a 20 percent deposit just isn’t realistic. Consider the rent you pay out trying to save that extra 10 percent and LMI may not be nearly as much. My LMI was about 4 k, that’s like only ten weeks rent and saving that extra 10 percent could take YEARS. So buying with a 10 percent deposit can certainly be a good option if you can make the repayments. My advice, start out with something small, something in an area that may not be the best, but once you have a place, it will be easier to get another. See a broker and get a plan together.
A 30 percent deposit is better, a 40 percent deposit even better, but you have to be realistic.
It is deffinently possible, I've just watched my partners ex do it, however she did inherit a large sum of cash that covered all the costs involved and then some.
Unless you are on a really good wage it is going to really minimise the amount you can borrow. Having 3 dependants is a huge drawback too - raising kids is expensive so this is less money you can afford to put towards paying a mortgage.
You really need to do your homework first, there is more then just a deposit that is required, there is upfront costs that aren't added onto the mortgage that on average are an additional 5% of the value of the house your purchasing.
But hey, don't let that stop you! if you don't give it ago you will never know. I'd suggest seeing a broker when you have a substantial deposit ready. They will point you in the right direction.