No Deposit Home Loans
Low or no deposit home loans allow you to purchase property with little or no deposit. In many cases you will be able to capitalise Lenders’ Mortgage Insurance onto your loan balance to avoid having to pay this cost upfront; your Loan Market mortgage broker will arrange this for you during the loan application process. This type of loan is particularly popular with first home buyers.
Lenders will require proof of a good income before considering you for a low or no deposit home loan, and may apply stricter assessment criteria and higher interest rates to the loan. Your Loan Market mortgage broker knows the assessment criteria you are required to meet and will package your application to best address this.
no deposit home loan assessment criteria
If you are interested in getting a no deposit home loan and would like to know more about the assessment criteria or to talk to a Loan Market mortgage broker about the home finance options that are in your best interest, call us on 13 LOAN (or direct on +61 2 9249 3739) or email us the form on this page and we will contact you within 2 business hours.
100% home loan - no deposit
A 100% or no deposit home loan covers the entire purchase cost of the property, but you will still need to finance any associated costs and Lenders Mortgage Insurance. Lenders often base their decision on eligibility for a 100% home loan on where you live as well as your ability to meet the repayments, so it's important to discuss your preferred purchase locations with your mortgage broker. The interest rate may be slightly higher.
95% home loan - low deposit
95% home loans are generally still available at standard interest rates. Often borrowers also capitalise their Lenders' Mortgage Insurance costs into the loan, taking the overall borrowings to around 97%. This means you only need to provide a small deposit and cover associated costs.
Loans to cover associated costs
Some lenders may also consider you for a personal loan in addition to a no deposit loan, to allow you to borrow some or all of the additional costs associated with your property purchase, such as stamp duty and conveyancing fees. You will need to discuss this option with your local mortgage broker.
increase your deposit
Whilst a no deposit home loan can be suitable, it's always a good idea to put together as much of a deposit as you can, to minimise costs and give you more room to negotiate on interest rates. Put together a basic savings plan using the savings calculator to increase your deposit amount.
secure a no deposit or 100% home loan
To organise finance for your property purchase with little or no deposit, or to discuss the home loan that is in your best interest, talk to your local Loan Market mortgage broker and we will return your enquiry within 2 business hours. Or call us at any time on 13 LOAN or direct on +61 2 9249 3739.
