Monday, January 13, 2020

Can You Still Get No Deposit Home Loans?

Are you struggling to put down the standard 20% deposit needed to score a home loan?


You are not alone; many would-be homeowners in the country are sailing in the same boat. The good thing is that there are several family pledge home loan options for people like you. 

Criteria for No Deposit Home Loans

 

Getting a home loan without paying the mandatory 20% down payment is no picnic.

However, lenders use the following criteria to award no deposit home loans:

Clean Credit Rating: Following credit tightening of recent years, lenders are required to seek a higher level of comfort when assessing your application. That’s why you need a clean credit rating and history with the major credit reporting agencies.

Reliable Income: It’s a no-brainer that lenders will check out your employment income to gauge your ability to repay the loan. In most cases, income earners with good income surpluses have a better chance of being approved.

Spotless Repayment History: you must have a clean track record of paying your bills, debts, and monthly expenses on time. If you have a less than a stable history of paying off your personal loans, credit cards and even rent, you have lower chances of getting a home loan by way of a family pledge application.


Other factors that the lender might factor into the equation include location and type of home you are looking to buy.


Important Ways to Getting a No Deposit Home Loan

 

1. Family Pledge
The difference between a conventional home loan and a Family Pledge home loan boils down to getting a guarantor or a cosigner to borrow 100% of the home value. You can also get a guarantor to pay the deposit by way of a gift. One advantage of a family pledge no deposit home loan is that you’ll enjoy a broad range of additional features, including offset account, flexible repayment options, redraw facility, and so much more.

2. Take Out a Personal Loan as Deposit
If you cannot raise the down payment on your big purchase, you can borrow a personal loan to cover the deposit. It is ideal for high-income earners. This is only available through some Banks
 

3. Monetary Gift
It is quite common for parents or relatives to gift people money to pay down the deposit or even the entire value of the home.

4. FHOG

The First Home Owner Grant was specially designed to help first time home buyers to get funding for deposits.

5. Leverage the Equity in Your Other Properties
If you have equity in your other homes or business buildings, you can redraw, top-up or even refinance to cover the deposit of a new home loan.

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