No Deposit Home Loans and Deposit Gap Loans

News & Views - No Deposit Home Loans On Line

No Deposit Home Loans & Deposit Gap Loans
Now more than ever Home Owner are able to enter the market soon than later utilising the No Deposit Home Loans and Deposit Gap Loans that are available from Financial Institutions. We have many Lenders on our panel that provide these type of Home Loan Options.

Main benefit of this type of loan
The main benefit of this type of loan is that you don't need genuane savings as long as you have funds to complete the transaction at settlement.

You can also concider fixing your loan at competitive rates.
It is worth considering a No Deposit Home Loan

 

 

 

 

 

 

 

 

 

 

 

 

 

No Deposit Home Loans & Deposit Gap Loans

No deposit home loans are a fantastic vehicle which can help you purchase your home, a recent product which works well with no deposit home loans is called the ‘Deposit Gap Loan’ and works hand in hand with these types of home loans.

Whether you are a first home buyer or simply require a no deposit home loan to help you make your next purchase there are many times where there is a shortfall in funding even though the property is fully funded by the home loan.

These shortfalls can arise from things like stamp duty expenses, mortgage insurance or associated fees from the lender or conveyancing costs. Even where a first home buyer obtains the grant a shortfall can arise and this is where a deposit gap loan can assist.

The deposit gap loan has been introduced specifically to assist buyers in covering the costs of purchase whatever these costs may be as mentioned above. In general this product will provide up to 5% of the purchase price for the sole purpose of purchasing a property and these funds can only be used to pay for associated costs of purchase.

In essence, when you combine a deposit gap loan with a no deposit home loan you are effectively obtaining up to 105% finance on the property price, if you are a first home buyer entitled to the grant you can combine your grant with the deposit gap loan and potentially only require a 2% gap loan.

There is no minimum percentage you can borrow so whether you require 1% or 5% of the purchase price the deposit gap loan can help bridge the gap.

Below are some key points to consider when looking at using a deposit gap loan:

A deposit gap loan can be used for any purchase of an owner occupied property A deposit gap loan can be used for any purchase of an owner occupied property
This loan can provide up to 5% of the purchase price depending on the strength of the application This loan can provide up to 5% of the purchase price depending on the strength of the application
The deposit gap loan allows you to enter the property market a lot quicker than having to save a deposit and the associated costs of purchase The deposit gap loan allows you to enter the property market a lot quicker than having to save a deposit and the associated costs of purchase
Competitive interest rates are available for the deposit gap loan Competitive interest rates are available for the deposit gap loan

Even if you are looking for a 95% home loan and have funds to cover costs you can still use the deposit gap loan to cover the 5% deposit required so this product is not restricted to no deposit home loans.

Let’s take a look at some of the most commonly asked questions about the deposit gap loan:

Can I use the deposit gap loan for an investment property? Can I use the deposit gap loan for an investment property?
You can only use the deposit gap loan for owner occupied properties You can only use the deposit gap loan for owner occupied properties

Do I need to be earning a minimum amount to apply for a deposit gap loan? Do I need to be earning a minimum amount to apply for a deposit gap loan?
Yes, the minimum earnings are 20k per annum for each person applying Yes, the minimum earnings are 20k per annum for each person applying

I’m self employed, can I apply for a deposit gap loan? I’m self employed, can I apply for a deposit gap loan?
You can be self employed although you will need to provide tax returns and ATO notices You can be self employed although you will need to provide tax returns and ATO notices

Can I pay off the deposit gap loan by making additional repayments? Can I pay off the deposit gap loan by making additional repayments?
Yes you can make additional repayments to lessen the term of the loan Yes you can make additional repayments to lessen the term of the loan

Do I need a clean credit when applying for a deposit gap loan? Do I need a clean credit when applying for a deposit gap loan?
Yes you do need a clean credit rating, this also applies to obtaining a no deposit home loan Yes you do need a clean credit rating, this also applies to obtaining a no deposit home loan

Can I use the deposit gap loan to consolidate existing debts such as a credit card? Can I use the deposit gap loan to consolidate existing debts such as a credit card?
The deposit gap loan can only be used to cover the costs of purchase as it is secured against the property being purchased The deposit gap loan can only be used to cover the costs of purchase as it is secured against the property being purchased

There are many benefits to choosing a deposit gap loan and to find out more about this loan or simply ask some more questions we invite you to contact us and speak to one of our home loan consultants who will assist you.

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