Low Deposit Home Loans
Homeownership is closer than ever
No savings? No stress, you’ve got options
Your financial situation is as unique as your social feed and, just like your decision to unfollow your ex, there are some smart decisions to make when it comes to your money too. If you only have a small amount of savings, there are still plenty of smart paths to home ownership – because the alternative starts with you paying someone else’s mortgage which never ends well…
Little (like 1% little) savings?
Okay, in the dark ages of home loans you would have needed 20% for a deposit (ouch! my bank account hurts just thinking about that). But nowadays there are options for 5%, even 2% deposit loans. That’s right renters, finally the financial powers-at-be realised how impossible it is to save a huge deposit while paying off someone else’s mortgage! You can even cut a break with Lenders Mortgage Insurance (LMI).
Low deposit home loan #Matchmaker
Now that you’re intrigued, we’ve lined up all the financial options of your dreams. Bachelor who?
First Home Owners Grant – Some loan options will allow you to use your FHOG towards your deposit, reducing the amount you need to save.
5% Deposit – A lot of lenders will get you into your own home with as little as a 5% deposit (get the champagne ready because that’s a steal!) You’ll still need to pay LMI, so factor that into your savings.
Guarantor – You can get Mum and Dad (or an immediate family member) to use their equity as security against your new home. It allows you to borrow up to 100% of the value purchase price if your guarantor (thanks parents) will co-sign your loan. #infamilywetrust
First Home Loan Deposit Scheme – This is perfect if you’ve got that 5% deposit but don’t want to pay LMI. The Government will go guarantor for up to 15% of the purchase price so the bank of Mum and Dad isn’t the only option!
Keystart – You’ll only need 1% genuine savings (the other 1% can be gifted or from your FHOG) and don’t need to pay LMI. This is the lowest deposit home loan on the market. Dreams do come true! (With the right loan, of course).
Rental History – Here’s where it gets interesting. With some lenders you might not even need a 5% deposit if you can prove 6 months of rental payment history through a licensed real estate agent. #yesplease
Gifts – And no, we’re not talking about the many houseplants or candles you’ll get at the future house-warming party. Some lenders allow ‘gifted funds’ to form part (or all) of your required deposit. This could be from parents, someone close to you, inheritance, or lottery.
It’s time to find out if you qualify for a new pad!
Provide some details below and our in-house finance team will run the numbers and let you know if you qualify for a low deposit home loan.
Here’s a few As to some Qs you may have.
What is the lowest deposit for a mortgage?
So…you want to know how low they can go? Well smarties, with as little as 2% savings for a deposit (yes you read correctly, just 2% thanks to our friends at Keystart), you could be on your way to building your very own smart home. Need help getting your funds in check? Our finance smarties are always here to help!
Can I buy a home with a low deposit?
You betcha! Gone are the days of needing a 20% deposit to kick start your new home dreams. Our team of finance smarties can fix you up with options from as little as 5% or sometimes even a 2% deposit. With tonnes of finance options available, we will help guide you towards the one right for you!
How do low deposit home loans work?
Uhhh, just like every other home loan. Basically, with a low deposit home loan, it’ll mean that your loan will be higher than average, relative to the cost of your new pad. As a result, you may pay more interest in the long run (sorry not sorry). But what’s a lil extra cash to build a stunnin’ new home now with little savings? Totes worth it.
Can I buy a home with a 5% deposit?
YES, you super saver! Time to pop the champagne and start living your best life as a homeowner. But first, have a chat to our team of finance smarties so they can work out the best finance product for you. Quick, go now!