#AskABroker: How Can I Make Saving For A Home Deposit Less Challenging?

Published by Otto Dargan on August 17, 2023

Hi, I’m Steven Chan, one of the many trusted mortgage brokers at Home Loan Experts. Are you tirelessly saving, cutting back on daily pleasures, and still feeling like the dream of homeownership is forever out of reach? It’s a common feeling. A recent survey by Canstar found that saving for a home loan deposit takes singles just under nine years, and couples on a dual income a bit above four years.

What can you do about it? Try looking into these options:

Government Homebuyer Schemes

  • First Home Guarantee Scheme: If you’re a potential first-home buyer struggling to save, this scheme might be the key for you. With just a 5% deposit, and no Lenders Mortgage Insurance (LMI), it could unlock the door to owning your home. This is part of the Home Guarantee Scheme.
  • Family Home Guarantee Scheme: Perfect for single parents or legal guardians, this program could allow you to buy a home with only a 2% deposit and no LMI. This is also part of the Home Guarantee Scheme.

Support From Family

  • Guarantor Assistance: If a family member, like a parent, believes in your dream of owning a home, they can use their property as additional collateral for the bank. This support might allow you to buy a home without needing a deposit at all, and it could even lead to waived LMI.
  • A Generous Gift: Receiving a gift, like a non-refundable sum or inheritance from a family member, can be a big help in buying a home. It’s a financial helping hand from someone who cares.

Think Outside The Box

  • Explore Personal Loans: If you have a regular and dependable income and you don’t owe much money on credit cards or other loans, lenders might see you as a low-risk borrower. This means you may qualify for a personal loan with favourable terms.
  • Tap Into Your Equity: Banks and other lenders may allow you to borrow money against your equity. Essentially, you’re using the part of your home that you own as collateral for a loan.

Ready To Take The Next Step?

Feeling inspired or curious about these options? Home Loan Experts is here to guide you through no-deposit and low-deposit loans to make your dream home a reality.

Call us on 1300 889 743 or complete our free online assessment form.

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