Welcome to our No Deposit Home Loans information page: This page is designed to assist you in understanding the basics of this type of loan and to give you an understanding of some of the features and downsides.
About Our services:
- Our brokers are experts in obtaining home loan approvals and specifically trained in loan structuring and credit policy, ensuring the best possible outcome for your needs.
- We provide an Australia wide service, at no cost to you.The lenders pay us a commission for the introduction of your business.
- Our website is designed to help borrowers understand the differences between loan types and the importance of having a mortgage broker to assist you in finding the right lender.
About No Deposit Home Loans:
What is a No Deposit Home Loan?
You have no deposit, but you still want to buy a home?
You should speak with us! We have quite a few options available to assist you with your No Deposit Home Loan enquiry.
Our most creative home loan. As the name suggests, a No Deposit Home Loan will allow you to buy a property, even if you have no savings for a deposit. There are four options available to you.
NOTE: lending criteria for these type of loans is generally tougher than most loans because of the high risk nature of the loan being applied for.
There are several options below that will be available to assist you in applying for No Deposit Home Loans.
Please remember, these types of loans can be very complex and we recommend that you speak with your mortgage adviser regarding your individual needs.
No Deposit Home Loans – options:
- 105% loan with guarantor. With help from your family, you can borrow more than the purchase amount in order to also cover the associated fees and charges.
- Non-refundable gift. A non-refundable gift of cash from a family member can assist you in purchasing a property.
- Equity in an existing property. If you have a property already and want to buy another property, you can use the equity from your existing property as your deposit.
- Personal Loan as a deposit. If you have sufficient income, it is possible to obtain a personal loan to create a deposit. This type of lending is an expensive option and will only be looked at as a last resort.
- We also have other options available via vendor finance. The vendor finance option is not something we normally recommend due to the complex and expensive nature of this type of loan and so we have decided not to write any content regarding vendor finance for our website. Your mortgage broker will discuss this option with you once they have exhausted all other options.
Should You Choose a No Deposit Home Loan?
You should choose a No Deposit Home Loan if there are no other options available to you. There are some very good loans available using some of the scenarios above. The no deposit home loans have competitive rates and are also fully featured, allowing you to repay extra, redraw funds et cetera. You also have the option of fixing your interest rate to provide repayment stability.
What benefits are there for you in a No Deposit Home Loan?
- If you do not have a deposit, you are still able to apply for a home loan, in order to buy a property.
- You may be able to incorporate all of the fees and charges associated with your purchase into the new loan.
- You will be able to save thousands of dollars in Lenders Mortgage Insurance costs.
- You could also possibly consolidate smaller debts into the home loan. This will allow you to pay more money on to your home loan each month.
- You will be able to get out of the rental cycle sooner and actually start to pay off your own home.
What do you need to be careful of in a No Deposit Home Loan?
If you are in the position of needing to apply for a No Deposit Home Loan, then you are limited as to what other options are available. This main thing to remember here, is how will you qualify the loan? Not what loan you will apply for.
There are too many scenarios to guess what type of loan you will need if you have no deposit or even a little bit of savings.
Please speak with your mortgage consultant to discuss the options available.
- Even though we have explained what a No Deposit Home Loan is, there are 2 areas that need to be considered. Qualifying the loan and once it is qualified, what type of loan and options are available to you?
- You will have a choice of different loan types such as fixed rate, variable-rate, split loan facility, 100% offset loan amongst others.
- Please contact your mortgage broker to discuss your options.
How can I apply?
These are your simple steps to apply for a loan.
- Contact us on the numbers above to speak to a mortgage broker, or complete our online enquiry form.
- You will speak with a broker who will take into account your needs by discussing not only your requirements, but also any concerns you have, and offer you some possible strategies and ideas that you may not have thought about.
- Once we know what you require, we will draft and email you a proposal– this will usually consist of a few options that are easy to understand.
- Once you have had a chance to look at what options are available, you can contact your broker or the broker will call you, to discuss the proposal.
- You can then decide if you wish to proceed or you may just want to discuss more options.
What are my other options?
There are many options available:
- Whether you are after a variable interest rate, a fixed interest rate, interest only loan, equity loan or any of the other loans available, it is important that you find out what is available to you before applying for a loan.
- The loans listed below are available for most lending purposes. Whether you are refinancing your home loan to a lower rate, or a property investor looking to buy that second or third property, we will have some ideas for you to consider.
- Even if you are a first home buyer purchasing a new home or renovating your existing home, there are some great deals available from the banks and lenders that we are accredited with.
- Please click on a link below to learn more about other loans that are available to you.