Amy Lunardi

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1,235 appearances 4 recordings 1 series first heard May 2020 last heard Dec 2022

Amy Lunardi’s voice in public audio — every appearance, attributed to the second.

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Australian Finance Podcast · Is Now The Best Time to Buy a House? Guest: Amy Lunardi · 3 May 2020 podcast

You're paying it over the life of the loan.

So it doesn't actually end up being a significant increase to your cash flows, but it is a cost.

And for a while as well, there's

Banks haven't been too excited about 5% deposits.

I mean, I borrowed 97% for my second property.

That was for an investment too.

Gone are those days.

But what this scheme is, is for people who only have a 5% deposit, the government is guaranteeing that loan.

So the government is stepping in kind of as that mortgage insurer and saying to the banks, we've got this.

So if you've got 5%, you don't have to pay that hefty lender's mortgage insurance.

Now, something that I tried to clarify before this call and no one could answer for me is what happens if you buy half of the 5% deposit and you're in a position where you are forced to sell it and for some reason you have to sell it at a loss?

I would presume that you would then owe the government that money because that's what happens with LMI.

I believe that that might be the case.

That's something that you would want to be clarifying.

So when you talk about, you asked me sort of my thoughts around the pros and cons of this.

The pros is that obviously saving a deposit is the biggest, one of the biggest hurdles for people.

And especially in a moving market, your money gets eroded because as prices go up, unless you're out saving the market or your borrowing capacity is outpacing the market, you actually start getting left behind.

So what I think it's good for is those people who are maybe coming out of study and they're going into these well-paid jobs where they've got good borrowing capacity and cash flows, but they want to be able to buy sooner rather than later.

And they just don't want that time to save up for the deposit.

My cons is that you do pay more interest over the life of a loan than obviously because you're borrowing more.

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