A low deposit home loan can be a great start for an individual looking to get their first property. You may be able to get a mortgage with a deposit as low as 5%. The deposit must be genuine savings and not a lump sum i.e. tax offsets, inheritance; etc. Each lenders' policy regarding genuine savings differs slightly so seek advice from your mortgage broker first. Lenders mortgage insurance may also be payable.
Low deposit home loans can be quite flexible and tailored to suit your needs.
Guarantor home Loan
Guarantor home loans involve your parents or another third-party who already owns property guaranteeing your loan. As guarantors, their property is used as collateral against your loan, so this is a responsibility that should be carefully considered by the Guarantor.
Some lenders allow the guarantor to choose how much of the loan – up to 100 % – will be secured against the property, but 20% is often considered the standard amount. A guarantor home loan can be a great option if you are a first home buyer who has the income to manage your home loan repayments but not yet enough for a deposit.
For help finding the loan that is right for you, talk to a Choice Home Loans broker today.
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