Re: How can I get a home loan with little savings of my own?
Posted: Fri Jun 01, 2018 1:44 pm
Hello Mohican. Welcome to the forum.
Yes, you can get a home loan without savings. You can get a guarantor loan if your parents are willing to pledge their security for your purchase.
Even though guarantor loans allow you to borrow all of the purchase price, many lenders still require you to have 5% of the purchase price in genuine savings.
The other benefits of going with a guarantor loan are as follows:
However, if you cannot cover the remaining amount, you can still save up for a while and apply again later.
There are a few lenders who don’t require this genuine savings requirement. You can enquire online or give us a call on 1300 889 743 if you want to know more.
Cheers,
Yes, you can get a home loan without savings. You can get a guarantor loan if your parents are willing to pledge their security for your purchase.
Even though guarantor loans allow you to borrow all of the purchase price, many lenders still require you to have 5% of the purchase price in genuine savings.
The other benefits of going with a guarantor loan are as follows:
- You are not required to pay Lender Mortgage Insurance (LMI) even if you borrow 100%. For normal loans, lenders will charge you LMI to protect themselves from loss for loans of more than 80% of the property value.
- You also have the ability to borrow up to 105% which can cover your other expenses like stamp duty so you don’t have to use any of your savings.
- You can consolidate any debts that you may already have as long as the loan amount is less than 110%.
However, if you cannot cover the remaining amount, you can still save up for a while and apply again later.
There are a few lenders who don’t require this genuine savings requirement. You can enquire online or give us a call on 1300 889 743 if you want to know more.
Cheers,