No Deposit Home Loan or 100% loans
If you have good cash flow (a good income) but low equity (no deposit), you may want to consider getting a No Deposit Home Loan.
While most other lenders will have no deposit home loans, it really is 97.2% to the property and 2.8% retained for Lenders Mortgage Insurance (LMI). You still have to come up with LMI either in cash, from your first home owner grant or by saving it. However, one of realestate.com.au Home Loans panel lenders (St.George), does offer a genuine 100% Home Loan but the rate on this home loan is usually higher.
No Deposit Home Loans - More Information and Help
If you would like more information on No Deposit or 100% home loans or to talk to a mortgage broker about home loan options that are in your best interest, call us on 13 LOAN (or +61 2 9249 3739 for international callers) or email us the form on this page and we will return your contact within 2 business hours.
Advantages and Disadvantages of No Deposit Home Loans
| Pros |
Cons |
You can buy property sooner without waiting until you save a larger deposit |
Stricter lending criteria makes approval more difficult |
Most come with features such as additional repayments and redraw |
You are limited to certain types of properties |
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As you are borrowing more money, you'll pay more interest in the long term |
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You are limited to certain types of properties |
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Mortgage insurance will be higher than "deposit" home loan products |
No Deposit Home Loans Repayment Options
The increasingly competitive lending market means that there are now more options available with no deposit loans; these options usually relate to the way you choose to make your repayments. To work out which lender and offer is in your best interest, talk to your local mortgage broker.
More information or help
For confidential assistance with your home loan or to talk to your local mortgage broker, call us at any time on 13 LOAN or call our direct line on +61 2 9249 3739.
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