How do I qualify for a no deposit home loan?

Any general questions you might have in regards to loans and finance.
Angus
Posts: 3
Joined: Mon Jan 21, 2019 2:48 pm

How do I qualify for a no deposit home loan?

Postby Angus » Mon Jan 21, 2019 2:54 pm

Hey, I’m a computer programmer (JavaScript frameworks) working within the tech industry with decent pay in the Greater Sydney area. How do I qualify for a no deposit home loan? If I do - what’s the deal here? Why is there no deposit required? Are the interest rates higher for these types of home loans?

User avatar
Otto Dargan
Mortgage Specialist
Posts: 7726
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: How do I qualify for a no deposit home loan?

Postby Otto Dargan » Mon Jan 21, 2019 4:30 pm

Hello Angus. Welcome to the forums.

Regarding your first question, there are a few ways you can qualify for a no deposit home loan:
  • A guarantor home loan is a guarantee from your parents that use their house as collateral for your home loan. You can borrow up to 110% of the property value including the costs of completing the purchase and consolidating some small debts.
  • If your parents can provide a gifted deposit of 5–15% of the property value, you can use that towards the deposit on your house. Providing a gift letter signed from your parents to the bank is required and, above all, the gift must be non-refundable.
  • Using equity from another property: If you already own a property, you can use the equity from that property as a deposit. In case of default or for whatever reason you can’t make mortgage repayments, the lender can sell that property.
There are other no deposit home loan options available including using a personal loan, your SMSF or vendor finance but it's best to speak with a mortgage broker to find out which option is right for you.

Call 1300 889 743 or complete our online enquiry form today.

As for your last question, generally speaking, home loans with no deposit enjoy the same competitive interest rates as other types of home loans.


Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Angus
Posts: 3
Joined: Mon Jan 21, 2019 2:48 pm

Re: How do I qualify for a no deposit home loan?

Postby Angus » Mon Jan 21, 2019 5:36 pm

Those options don’t work for me. Do I have any other option to get a no deposit home loan or am I screwed?

User avatar
Otto Dargan
Mortgage Specialist
Posts: 7726
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: How do I qualify for a no deposit home loan?

Postby Otto Dargan » Mon Jan 21, 2019 6:13 pm

Hi Angus,

From what I gather you have stable employment and a good income - that can help you when banks assess your creditworthiness.


Here are some tips that will help you qualify for a mortgage:
  • Save your cash: Try to save at least 5% of the deposit in a savings account, banks will accept this as genuine savings and you’ll be in a strong position to qualify for a home loan.
  • Stable employment: Lenders look for stability in their borrowers and usually like to see that their borrowers have been working in that job for at least 2 years.
  • Prepare to buy program: Use our prepare to buy program so we can fully assess your situation and let you know what else may be stopping you qualifying for a home loan.

Call us on 1300 889 743 or you can fill in our free assessment form to see if you qualify.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Angus
Posts: 3
Joined: Mon Jan 21, 2019 2:48 pm

Re: How do I qualify for a no deposit home loan?

Postby Angus » Mon Jan 21, 2019 7:20 pm

I have a savings account and make regular contributions towards it, though not nearly enough to cover the 5 % deposit for a house. I make about $90,000 p.a. What can I do here?

User avatar
Otto Dargan
Mortgage Specialist
Posts: 7726
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: How do I qualify for a no deposit home loan?

Postby Otto Dargan » Mon Jan 21, 2019 8:05 pm

Hi Angus,
You’re on the right path. However, without looking into your details, we cannot really make a fair assessment.

We have experienced mortgage brokers who have worked for different bank’s credit departments so they know how the banks will view your home loan application.

Our mortgage brokers can help you complete the following assessment:
  • Identify “credit issues”.
  • Complete a credit scoring assessment.
  • Complete a credit check.
  • Work out if you need a deposit, and if so, how much you need to save.
  • Calculate your borrowing power.
  • Inform you of what you need to change to get approval.
It is best to just give us a call on 1300 889 743 or you can fill in our free assessment form

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts


Return to “Home Loan Forum”

Who is online

Users browsing this forum: No registered users and 2 guests