If you need a home loan but don't have a deposit, read carefully....
Can’t sit still? Itching to get into the property market right now? Living, eating, breathing, dreaming about property but have no savings?
If you want to buy property now, but don’t have a deposit saved, then you could look at a no-deposit home loan. Traditional loans require a 5% - 20% deposit, but with a no-deposit loan, this is not necessary, instead you borrow 100% of the property value.
With this type of loan, customers borrow 100% of the property price, or in some cases 110% to cover all the legal costs, mortgage insurance and moving costs as well. Obviously as you are borrowing such a large amount the lender will charge you a higher interest rate than that of a standard home loan, and you will need to be sure that you can afford the higher repayments.
The Good Stuff
There are many advantages to this loan, with the main one being borrowers are able to purchase a property without needing to save the deposit. This can be useful for first-home buyers, as well as investors or people buying second homes, who find a property before being able to save enough of a deposit. Remember, you can still access any government grants that you are eligible for such as the first home buyer grant, therefore if you can afford the repayments, a no-deposit loan can be an attractive option.
The Not So Good Stuff
Because you are borrowing a higher amount than you would if you had a deposit, you are going to pay more in interest as the amount of your loan will be higher. You may also be required to pay Lenders Mortgage Insurance, and there can be higher fees associated with a no-deposit loan.
Plan for your future
If you just can’t wait any longer to buy your first home, or you are investing in a second property but don’t have any savings, then a no deposit home loan can suit you well. You should talk to a mortgage broker first to ensure that the product you choose is right for you, and you understand what you are signing up for. No one likes nasty surprises, which may happen if you don’t check the terms and conditions carefully. Your mortgage broker will be able to check the contract on your behalf and ensure that your no-deposit home loan is going to benefit you long term.
If you make the wrong choice, your home could be at risk. Talk to a local Brisbane mortgage broker about which home loan to choose, and the best ways to repay the mortgage faster. Call us on  or submit your details on line.
|
|
More in this Section | How safe is your home loan? What happens if my lender goes bankrupt? | Ten useful tips for paying off your home loan faster.
| Home Loans available to you | Pro packs for high income earners | Did you know that your mortgage could do more than just pay for your property? |
Brisbane & Gold Coast Home Loans
|
|
Variable rate home loans now with all the bells and whistles. |
|
Bring together all your credit cards, car loans and other debts into the single facility. |
|
Interest rates keep falling. Are you getting the best deal you can?
|
|
Don't be penalised just because you run a successful small business. Be treated as an equal here.
|
|
Get past the tough times with home loan solutions to over come a bad credit history.
|
|
A honeymoon loan can save you thousands to begin with. The trick is reading the small print.
|
|