What are my options for a no deposit home loan?

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Dwight S
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Joined: Fri Mar 01, 2019 11:44 am

What are my options for a no deposit home loan?

Postby Dwight S » Fri Mar 01, 2019 11:45 am

Hi HLE, I’m a salesman for Staples here in Brisbane QLD; yes, paper still exists. Anyway, I just got married and I’m looking to buy our first home. I haven’t been able to save a deposit but I earn about 50K excluding commissions. What are my options for a no deposit home loan?

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Otto Dargan
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Re: What are my options for a no deposit home loan?

Postby Otto Dargan » Fri Mar 01, 2019 1:04 pm

Hello Dwight S. Welcome to the forums.

You can still get a no deposit home loan through several options such as:

  • Guarantor home loans: You can borrow up to 90-105% of the property value if your parents act as guarantor by securing the loan on their property.
  • Gifted deposit: You could even use a gift from your parents as the deposit. You will have to provide a signed gift letter from your parents.
  • Personal loan: This option is only available to borrowers in a strong financial position so it may not be applicable to your situation. You also still need some funds of your own to cover stamp duty and other expenses.
  • Use your superannuation: If you have over $150,000 in your superannuation fund, you can set up a self-managed superannuation fund (SMSF) to buy a property.

To find the best no deposit home loan option for your situation, speak with one of our specialist mortgage brokers by calling on 1300 889 743 or fill in our free assessment form.

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

Dwight S
Posts: 3
Joined: Fri Mar 01, 2019 11:44 am

Re: What are my options for a no deposit home loan?

Postby Dwight S » Fri Mar 01, 2019 3:14 pm

I think I might have to go with a no deposit guarantor home loan. Are there any extra features available with guarantor loans?

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Otto Dargan
Mortgage Specialist
Posts: 7243
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: What are my options for a no deposit home loan?

Postby Otto Dargan » Fri Mar 01, 2019 6:10 pm

Hi Dwight S,

A no deposit guarantor home loan includes almost all loan features similar to a standard home loan such as:

  • Professional package discounts
  • Waived application, valuation and monthly fees
  • Fixed rates (1 year, 3 years, 5 years, 10 years and 15 years)
  • 100 % offset accounts
  • Unlimited extra repayments (variable rate loans only)
  • Redraw facilities
  • Interest only repayments (up to 15 years)
  • Weekly, fortnightly or monthly repayments
  • Vacant land, building or construction loans

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

Dwight S
Posts: 3
Joined: Fri Mar 01, 2019 11:44 am

Re: What are my options for a no deposit home loan?

Postby Dwight S » Fri Mar 01, 2019 6:49 pm

If I were to go through with this, what are some drawbacks of going with a no deposit home loan?

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Otto Dargan
Mortgage Specialist
Posts: 7243
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: What are my options for a no deposit home loan?

Postby Otto Dargan » Fri Mar 01, 2019 7:02 pm

Hi Dwight S,

When going with a no deposit home loan, consider the following drawbacks:

  • You have to meet stricter lending criteria than if you had a deposit
  • Some lenders charge a higher interest rate for no deposit loans, although this is not the case with all lenders.
  • Since you’ll be borrowing a higher amount, your regular mortgage repayments will also be higher.
  • You’re not exempt from all bank fees and may still need extra funds to cover application fees, lender fees, legal fees and valuation fees.

We’re specialists in no deposit and guarantor home loans.
Speak with one of our experienced mortgage brokers today by calling us on 1300 889 743 or fill in our free assessment form.

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


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