Applying for a no deposit home loan

Any general questions you might have in regards to loans and finance.
Randy0
Posts: 4
Joined: Tue Feb 12, 2019 3:58 pm

Applying for a no deposit home loan

Postby Randy0 » Tue Feb 12, 2019 4:01 pm

Hello,

I’m in a bit of a pickle at the moment! My friend recommended that I contact you. So here it goes! I’m looking to purchase my first property that’s priced at $700,000 in Armidale. I want to buy it within the next couple of months, but the problem is that I used up all the deposit I had to pay off my sister’s medical treatment. So as of writing this, I don’t have any deposit whatsoever. I was wondering if you could provide me with any assistance on what I can do! Any assistance would be very appreciated.

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Otto Dargan
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Re: Applying for a no deposit home loan

Postby Otto Dargan » Tue Feb 12, 2019 4:16 pm

Hi Randy,

Welcome to the forums.

You actually have quite a few options to get a no deposit home loan. Here are a few that you can take:

Guarantor home loan: With a guarantor home loan, you can borrow up to 105% of the purchase price if your parents act as your guarantors who secure the loan on their property.

A gifted deposit home loan: Some lenders will allow you to borrow up to 95% of the property value with no genuine savings if your parents or someone else can gift you a deposit.

Personal loan as a deposit: Although not recommended, it is possible to use a personal loan as part of your deposit to buy a home. This option is only available if you are in a strong financial position.

Call us on 1300 889 743 or fill in our free assessment form and one our mortgage brokers will help you find the best option for you.

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

Randy0
Posts: 4
Joined: Tue Feb 12, 2019 3:58 pm

Re: Applying for a no deposit home loan

Postby Randy0 » Tue Feb 12, 2019 4:32 pm

Wow! I wasn’t aware that I had so many options. Thanks for helping me out with this. I’m liking how the first option sounds. I have good relations with my parents and they have a decent-sized property in Grafton. They should be willing to act as my guarantors. Can you provide me with some additional information on this? I’m also open to any suggestions.

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Otto Dargan
Mortgage Specialist
Posts: 7706
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: Applying for a no deposit home loan

Postby Otto Dargan » Tue Feb 12, 2019 4:53 pm

Hey Randy,

Buying a property with your parents guaranteeing your loan is a great option!

Where other options have strict lending criteria that people cannot meet, a guarantor loan is pretty straightforward and highly-effective.

With this loan, you can borrow up to 105% of the property value, and you don't need any deposit. You will also not have to pay Lenders Mortgage Insurance (LMI), and may also get discounted interest rates from some lenders.

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

Randy0
Posts: 4
Joined: Tue Feb 12, 2019 3:58 pm

Re: Applying for a no deposit home loan

Postby Randy0 » Tue Feb 12, 2019 5:01 pm

Hey, That’s great! One last question! I will ask my parents if they are willing to be my guarantor. But what if that doesn’t work out? I honestly don't see any of the other options working out for me!

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Otto Dargan
Mortgage Specialist
Posts: 7706
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: Applying for a no deposit home loan

Postby Otto Dargan » Tue Feb 12, 2019 5:18 pm

Hey Randy,

Unfortunately, there are no lenders in Australia that provide no deposit home loans other than the options mentioned above.

If these options don’t work out, the best approach is always to save a deposit with regular deposits into a savings account, in this way meeting genuine savings requirements.

These other tips should also help you to qualify for a home loan:

Prepare to buy: Join our prepare to buy program so we can complete a full assessment and let you know other reasons you may be declined for a mortgage.

Save a 5% deposit: Save 5% of the purchase price in a bank account in your name. Make regular contributions.

Don’t change jobs: When you are borrowing close to 100% of the purchase price, the lenders like to see that you have a stable income and that you have been in your job for some time.

Pay your bills on time: If you don’t have much of a deposit then lenders will lose a significant amount of money if you can’t make the repayments. For this reason, they look very closely at your credit file and rental history.

Stay in touch: Our mortgage brokers specialise in guarantor and 95% home loans.

You can also call us on 1300 889 743 or fill in our free assessment form and one our mortgage brokers will help you find the best option for you.

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

Randy0
Posts: 4
Joined: Tue Feb 12, 2019 3:58 pm

Re: Applying for a no deposit home loan

Postby Randy0 » Tue Feb 12, 2019 5:26 pm

Great! Thanks! I appreciate the gesture. I will call you tomorrow.


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