Re: Can I take out a no deposit investment loan?
Posted: Wed May 13, 2015 9:10 am
Hello bond.
Welcome to the forums.
Yes, it’s possible to get a no deposit investment loan, with the most popular option being with the help of a guarantor.
A guarantor is a third party who will provide a guarantee for your investment loan, which is secured on their personal property. If for some reason you’re unable to pay back the loan, the guarantee will be exercised to recover the debt.
It should be noted that most banks won’t accept anyone except for your parents as guarantors. Some lenders may accept immediate family members such as siblings or grandparents but you may need to meet additional lending criteria in order to qualify.
Some lenders may even accept a gift as a deposit. You may also use the equity from your existing property to get a bigger deposit or simply use a personal loan as a deposit.
By the way, a 40k savings is 20% of 250k essentially meaning you may be able to get a $200,000 investment loan at 80% of the face value without a deposit.
Cheers,
Otto
Welcome to the forums.
Yes, it’s possible to get a no deposit investment loan, with the most popular option being with the help of a guarantor.
A guarantor is a third party who will provide a guarantee for your investment loan, which is secured on their personal property. If for some reason you’re unable to pay back the loan, the guarantee will be exercised to recover the debt.
It should be noted that most banks won’t accept anyone except for your parents as guarantors. Some lenders may accept immediate family members such as siblings or grandparents but you may need to meet additional lending criteria in order to qualify.
Some lenders may even accept a gift as a deposit. You may also use the equity from your existing property to get a bigger deposit or simply use a personal loan as a deposit.
By the way, a 40k savings is 20% of 250k essentially meaning you may be able to get a $200,000 investment loan at 80% of the face value without a deposit.
Cheers,
Otto