and statutory costs that are normally associated when buying a property.
This loan facility fills a void in the market place as most people cannot save for a deposit or find it difficult keeping pace with the rising property values in the Australian market
Opting for this type of loan you are buying convenience at a premium. You will need to pay for the lenders mortgage insurance premium which is typically charged at around 3% of the property purchase price; so in essence you will still require some savings contribution going toward the purchase.
These loans are also charged at a higher interest rate due to the higher borrowing risk associated with the funding. You also need to pay for the establishment and valuation costs.
The main qualification criteria for this facility are to show a relatively high income with a good credit record.