Can we get a 95% sub-prime mortgage?

Posted on 24 January 2008

Myself and my partner are trying to get a sub prime mortgage of 95% is this possible? The deposit comes from my partners work as a long service pay award, would this be an acceptable form of deposit?

Sarah

Hello Sarah,

Yes there are sub-prime mortgages at 95% but the rates are very high, and it's not terribly advisable to buy without a little bit more of a safety cushion at the moment. Property values are widely expected to fall and you could end up in negative equity.

As for the deposit, yes a pay-out of that sort is fine. Anything legal and not borrowed is generally exactly what they like.

Best of luck.

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