95% No Deposit Home Loans - Owner Occupied
No deposit home loans are a fantastic way for the potential home buyer to get into the housing market. With prices always on the increase it is sometimes difficult to save for the deposit that most lenders ask for, when you consider that the average house price is 300k you are looking at needing to save a minimum of 15k and this is a lot easier said than done.
So how does a no deposit home loan help? Well it's simple, as the name suggest this type of home loan bridges the deposit gap and allows you to borrow up to 95% of the purchase price, what this does is allow you to either put funds you have into stamp duty and associated costs or even use the First Home Owners Grant if your entitled to it.
Aside from these options there is also a deposit gap loan or another option is to have a family gift if this is available to you. Overall a no deposit home loan is a great vehicle which allows you to enter the housing market, these home loans are not only for the first home buyer but anyone who wishes to purchase an owner occupied property.
It should be noted that with the Credit Issues being experienced Globally, Lenders know require applicants to show 5% genuine savings for any loans that are above 85% Loan to Value. Although Lending institutions will still consider applicants under a no deposit scenario, it is of utmost importance that you can demonstrate a 5% savings pattern over a 6 month period.
For further information we recommend, prior to any purchase that you obtain a pre-approval, ensuring that the Lender of choice is comfortable in providing you with the finance to purchase your next Owner Occupied Property.
You can contact us for more clarification.
Many existing home owners have chosen a no deposit home loan as their preferred choice when purchasing their next property. Many of these clients choose this option because it allows them to use the equity in their existing property to fund new stamp duty charges and also pay off existing debts such as credit cards or personal loans. In essence many of these clients start with a clean state of credit and opt to only have one loan which is their home loan after having paid off other debts through the sale of their existing property.
When it comes to interest rates there is minimal difference between a no deposit home loan and traditional home loans which allow up to 95% borrowings. You have the option of choosing a fixed or variable interest rate, setting up a bank account, weekly, fortnightly or monthly repayments and even redraw facilities depending on the home loan provider you choose.
Here are some key points on No Deposit Home Loans for you to refer to:
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No deposit home loans provide full funding of the purchase price |
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Allows you to use your savings to fund the associated costs of purchase such as stamp duty |
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These home loans allow you to enter the housing market sooner and stop the rent cycle which is dead money |
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Home loan flexibility in being able to choose fixed or variable rates and other banking facilities based on the home loan provider chosen |
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Ability to choose the property type i.e. house on land, unit, apartment or even construction |
As you can see the choices that a no deposit home loan provides are broad so you're not limited or disadvantaged by selecting this type of product simply because you don't have a deposit. We have helped hundreds of people get into their ideal home through our wide choice of no deposit home loans and our experience when helping first home buyers obtain the grant.
We specialise in home loans which do not require a deposit so we have the know-how and product choices to help you right away.
Whatever the purpose of the no deposit home loan our consultants can help so Contact Us via this site to find out more.
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Useful Sites as a point of reference: |
| Web Designs & CRM Systems | FBAA | More info on No Deposit Home Loans | Other Home Loan Options |  |
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