I have no deposit – can I still borrow?

The short answer is yes, but it’s not easy. Here are some options:

Equity in another property

If you already own another property you can use your equity in that as the deposit for your new property. If you are doing this it may also be a good time to discuss mortgage consolidation.

A financial gift

Other options that avoid LMI include accepting a direct financial gift of 20% of the purchase price, again often from parents. Be truthful. Don’t tell the bank it’s a gift if it is actually a loan and do familiarize yourself with the estate planning issues that relate to a gift as opposed to a loan.

Take out a personal loan

You could take out a personal loan to cover the deposit. You will already need to have a small deposit (3% to 5%) as well as a high income and low expenses, a spotless credit history and no other significant debt.

Use a broker

All these financing options are complicated and require a thorough knowledge of the marketplace. If you need to use a broker, we can approach the lenders that best match your needs and also help you to present a credible application.