FTB New home mortgage - advice please?!

garymac

I apologise now if this is a dumb, stupid or in any way idiotic question to ask. But I'm a bit confused about something in an advert i've seen for a new home and would be very grateful for some clarification:

An advert for a new home goes like this:

"this is a stunning 3 bedroom property and with price starting at 147,995 with a possibility of a 5% deposit paid"

The same advert goes on to advertise that the developer can do mortgage advice etc.

My query is this: can the 5% deposit referred to be used as a deposit for a mortgage? eg - that 5% deposit be used to obtain a 95% mortgage. I guess that such a mortgage would only be available via their mortgage broker etc.

Any help would be appreciated!

ACG

Some builders do have agreements with lenders where the "5% deposit" goes towards the deposit needed.

In reality though, the property is probably over priced by 5% so theyre probably not giving you anything.

Also, brand new homes usually lose value as soon as they have been bought and then take a few years to build up that value again.

MagicCats

You may find the builder also has a caveat whereby you must use their financial advisor for the mortgage thus restricting you to their chosen lender which might not be best for you.