I have no deposit – can I still borrow?
The short answer is yes, but it’s not easy. Here are some options:
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.
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.
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.
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.