How To Buy A Home With A Small Deposit (Or None At All)!
If it feels like you’ve been trying to save for a deposit forever then we have just the solution for you. In fact, we have FIVE for you to choose from!
1. Get a gift from your parents
First of all, did you know that lenders can approve your loan even if you don’t have genuine savings? Of course, this is only possible if your parents gift you the deposit. In most cases, around 9% to 10% of the property price is enough to cover your deposit and purchase costs such as stamp duty.
2. Go guarantor
If your parents have their own property then another option is to apply for a guarantor loan! The plus side of this type of finance is that you may be able to borrow up to 105%, avoid paying LMI (Lenders Mortgage Insurance) and get a low interest rate.
3. Leverage equity
If you’ve already invested in a property then one option is to leverage the equity in that property to finance your new home.
4. Vendor finance
If you aren’t an investor, then you can apply for vendor finance instead. What happens here is that a private investor loans you the money for you to use as a deposit. This is the best option for borrowers who have a good income but are having trouble getting approved with a bank.
5. Use a personal loan
Another way for you to buy a property with a small deposit is to borrow 5% of the property price with a personal loan which you can then use as your deposit for a 95% home loan. Remember though, you will still need a bit more to cover your stamp duty and other purchase costs!
If you’d still like to try and save more then these tips on how to save a deposit are just what you need to help you on your way to owning a home.
Speak with one of our expert mortgage brokers
If you want to avoid waiting another five or six years to get into the property market, call us on 1300 889 743 or fill in our free assessment form so one our expert mortgage brokers can help you apply for a low deposit home loan.