Do I need to qualify to use personal loan as deposit?

Any general questions you might have in regards to loans and finance.
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Otto Dargan
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Re: Do I need to qualify to use personal loan as deposit?

Post by Otto Dargan »

Hi Howard F,

Yes, you will have to meet certain criteria if you want to use a personal loan as your deposit.

Here are some of the requirements that you'll generally have to meet:
  • A high income to afford both repayments,
  • Little existing debt (car loans, high credit card balances, etc),
  • A clear credit history,
  • Some savings to make up any shortfall, and
  • A proven rental history (preferred).
Most lenders do not offer home loans with if you have a borrowed deposit due to genuine savings requirements, where many lenders 5% of the purchase price in money that you have saved yourself. If you have some savings then we’ll have more banks to choose from and you’ll have enough money to cover other costs such as stamp duty and legal fees.

In addition to this many lenders do not offer personal loans if they are being used as a deposit on a home.

Before you make a decision, we strongly recommend that you consider a guarantor loan or go through our no deposit home loans page to see if there are better alternatives for your specific situation.

You can also call us on 1300 889 743 or enquire online and we will have one of our no deposit home loan specialists look into your application.

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

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