What are my no deposit home loan options?

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Sawyer9
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Joined: Thu Apr 25, 2019 3:28 pm

What are my no deposit home loan options?

Postby Sawyer9 » Thu Apr 25, 2019 3:30 pm

Hello,

I’m a car salesman from Marlborough and I’m looking to purchase my first home around Bowen. The problem is that I don’t have much in savings at the moment. But I have a stable job and earn around $55,000 a month. I was wondering if you could tell me what my options are to get a home loan?

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Otto Dargan
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Re: What are my no deposit home loan options?

Postby Otto Dargan » Thu Apr 25, 2019 4:04 pm

Hi Sawyer,

Welcome to the forums.

You have quite a few options to receive a no deposit home loan through some of our lenders. You can use:

- Guarantor home loans: You can borrow up to 90-105% of the property value if your parents act as guarantor by securing the loan on their property.
- Gifted deposit: You could even use a gift from your parents as the deposit. You will have to provide a signed gift letter from your parents.
- Personal loan: This option is only available to borrowers in a strong financial position so it may not be applicable to your situation. You also still need some funds of your own to cover stamp duty and other expenses.
- Use your superannuation: If you have over $150,000 in your superannuation fund, you can set up a self-managed superannuation fund (SMSF) to buy a property.

To find the best no deposit home loan option for your situation, speak with one of our specialist mortgage brokers by calling on 1300 889 743 or fill in our free assessment form.

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

Sawyer9
Posts: 3
Joined: Thu Apr 25, 2019 3:28 pm

Re: What are my no deposit home loan options?

Postby Sawyer9 » Thu Apr 25, 2019 6:24 pm

Wow! That’s great. I wasn't aware that I had so many options. But just to be on the safe side of things, can you tell me if there’s any sort of catch involved with choosing a no deposit home loan?

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Otto Dargan
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Joined: Sat Sep 06, 2008 5:55 pm
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Re: What are my no deposit home loan options?

Postby Otto Dargan » Thu Apr 25, 2019 6:25 pm

Hey Sawyer,

Excellent question!

When it comes to no deposit home loans, you need to consider the following points:

You have to meet stricter lending criteria than if you had a deposit.
Some lenders charge a higher interest rate for no deposit loans, although this is not the case with all lenders.
Since you’ll be borrowing a higher amount, your regular mortgage repayments will also be higher.
You’re not exempt from all bank fees and may still need extra funds to cover application fees, lender fees, legal fees and valuation fees.

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

Sawyer9
Posts: 3
Joined: Thu Apr 25, 2019 3:28 pm

Re: What are my no deposit home loan options?

Postby Sawyer9 » Thu Apr 25, 2019 6:26 pm

Oh! That sounds fair enough. Thanks for the help but all of this sounds a bit complicated to me. As a first time homeowner, I am eligible for a grant by the government. I should have enough in deposit if I add the grant to what I have saved up. Can you tell me if it’s possible to use my grant as a deposit?

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Otto Dargan
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Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: What are my no deposit home loan options?

Postby Otto Dargan » Thu Apr 25, 2019 6:27 pm

Hey Sawyer,

Every Australian citizen who is looking to buy their first property can receive a one-time First Home Owner Grant (FHOG). It is funded by the federal government and managed by the state government.

The first home owners grant amount will vary depending on which state you are in, if you are buying a new or established home and the purchase price of the property that you are buying.

You can use our first home owner calculator to get an estimate of the grant that you might receive.

Unfortunately, you cannot use your FHOG as a part of your deposit. Lenders want to see that you’ve planned and saved a deposit yourself because this shows to them that you’re likely to be a good borrower.

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


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