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).
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