No Deposit Home Loans Do 100% home loans still exist?
|"Welcome to Celebration Finance." - Gurbinder kler
NO DEPOSIT HOME LOANS | $25,000 HomeBuilder Grant
The federal government has announced a $25,000 grant to either build a new home or renovate an existing home. The grant is available for home buyers and home owners who sign a contract before the 31st of December 2020.
Equity is the difference between how much your property is now worth and how much you still owe on the home loan for that property. If your property is now worth more than you still owe on the home loan for it, this is known as ‘positive equity’. If you already have a home loan on a property, you may be able to use some of the positive equity on that loan as a deposit towards buying another property – if you can afford to repay two mortgages at once, that is.
Personal loan
Using a personal loan to fund your home loan deposit is technically possible in some scenarios, but it is not a common or easy method for buying a home. Some lenders do offer home loans to those who get a personal loan for a deposit, if the borrower can prove they have a high enough income to repay both the personal loan and mortgage.
Monetary gift
If you receive a large monetary gift (say from the ‘Bank of Mum and Dad’) or ‘windfall’ from something like an inheritance or the lottery, you may decide to put that towards a house deposit. These may be accepted by some banks but lending requirements will differ. For example, you may need to provide a “gift letter” which says the monetary gift is non-refundable and unconditional – or in other words, that there’s no expectation the money will be repaid. It’s worth noting, though, that some banks will only accept a deposit made up of “genuine savings”, and therefore wouldn’t accept funds you haven’t built up yourself by saving.
|"Welcome to Celebration Finance." - Gurbinder kler
Examples of how you may be able to get a home loan if you lack the savings for a deposit include:
Guarantor provides deposit or co-signs loan
First Home Owners Grant (FHOG)
First Home Loan Deposit Scheme
Monetary gift
Equity in another property
Personal loan
We’ve explained each of these options in more detail below.
Asking someone to go guarantor for you
One option for breaking into the property market is to ask a family member if they would be willing to co-sign your loan as a home loan guarantor. Some lenders may let borrowers borrow up to 100% of the property value if they have a parental help.
It’s not a request that should be made or granted lightly. If your parents go guarantor on your loan, it means they need to provide documentation proving they could repay your loan if you failed to meet the repayments. It also means that if you did miss a repayment, they would become liable for the loan repayments. Find out more about the requirements for a guarantor home loan and the pros and cons of asking your parents to help you buy a house.
First Home Owners Grant
First home buyers looking for a financial leg-up may be eligible for a First Home Owners Grant from their state government, if they meet certain requirements, and if they plan to live in the property as their home for a certain timeframe. Find out more about the First Home Owners Grant (FHOG).
First Home Loan Deposit Scheme
The First Home Loan Deposit Scheme is designed to help some first home buyers get a loan with a deposit as low as 5%, without needing to pay for LMI. The government essentially acts as a guarantor and secures the remaining deposit to bring the home buyer up to 20%. The guarantee is limited to 10,000 first home buyers a year and there is an income cap of up to $125,000 per year (or $200,000 per year for couples) for applicants.
Find out more about eligibility and which lenders can offer home loans under the scheme. Try Our Calculators for more knowledge
MORE INFO PLEASE CONTACT HERE Gurbinder kler Celebration Finance. M: 0414750586 E: info@celebrationfinance.com.au ACL 337294 ACR 501789
