Hello Mikail. Welcome to the forums.
The best no deposit option for a first home buyer
is a guarantor loan
with which you can borrow up to 110% of the property value. You can use the equity in your parent’s home to secure your mortgage so you can buy the studio apartment with no deposit. With a guarantor, you can avoid the high cost of Lenders Mortgage Insurance (LMI) as well as qualify for low-interest rates.
The other no deposit home loan option is a gifted deposit
. If your parents or close relatives can gift you a deposit, you can borrow up to 95% of the property value with no genuine savings. Lenders usually require a signed gift letter stating that the gift is, in fact, a gift and not a loan.
There are other options for a first home buyer with no deposit:
- Personal loan as a deposit: This option is only viable for an individual with a high income, less than $10,000 in debt and a perfect credit history.
- Use your superannuation: If you have over $150,000 in your super, you can set up a self-managed superannuation fund to buy a property. However, the property cannot be an owner-occupied property, it is only for investment purposes.
Give us a call on 1300 889 743
or fill in our free assessment form
to find out if you qualify for a no deposit home loan.