Low Deposit and No Deposit Home Loans
No deposit and low deposit home loans have received a lot of publicity in recent times as many banks and lenders have reviewed current lending criteria in line with a requirement for increased deposit amounts. This has meant that genuine 100% no deposit loans are now unavailable. One of the common misconceptions that has come about as a result, is that borrowers are restricted to a 90% LVR (loan to value ratio) and would therefore require a 10% deposit. This is not the case with all lenders and, if you know who to talk to, there are still some banks and lenders who will lend up to 95% and the remaining 5% deposit can take various formats.
They key to finding the right home loan for you, based on your current deposit situation, really comes down to knowing which bank or secure lender provides a home loan solution that can cater to your particular situation.
Low and No Deposit Home Loan Options – More Information and Help
Find out which realestate.com.au Home Loans panel lenders offer low deposit home loans that allow you to borrow up to 95% of the property value and get a mortgage broker to help you negotiate a better home loan package. Simply email us the form on this page or call 13 LOAN (or +61 2 9249 3739 for international callers) and we will return your contact within 2 business hours.
Low and No Deposit Home Loans Assessment Criteria
The assessment criteria on low and no deposit home loans is stricter and will often incur a higher interest rate than other home loan options. These criteria require that you provide proof of a good income, strong employment history and may also include postcode restrictions on the areas where you can purchase property. To work out what assessment criteria apply to you, talk to your local mortgage broker.
Advantages and Disadvantages of Low and 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 |
| As you are borrowing more money, you’ll pay more interest in the long term | |
| Lenders Mortgage Insurance (LMI) will be higher than “deposit” home loan products |
More information and home loan help
For more information on how and where to find a better home loan deal from an extensive panel of Australian banks and secure mortgage lenders, or to speak to your local area mortgage expert, contact us on 13 LOAN (direct +61 2 9249 3739)
