No and low deposit home loans

Important note: Genuine no deposit, 100% home loans which cover the full purchase price of the property are unavailable in the current economic climate.The following information on no deposit home loans is for your information only. If you have only a small or no deposit, talk to your mortgage broker about your home loan options, including setting up a good budget to assist you to build the required savings.

No and low deposit loans gained popularity early in the century as it became harder for borrowers to save deposits for a property. Even at the height of their popularity, no deposit home loans typically came with more ‘conditions’ and ’serviceability’ requirements, but for many Australians, particularly professionals who could service a loan but maybe not save a deposit, no deposit loans were a fantastic way to get out of the rent cycle and into their own property.

Following the Global Financial Crisis, 100% home loans were removed from the market. Low deposit loans to the value of around 95% of the property are an option for low deposit holders.

There are also a range of other options for low deposit holders, so talk to your mortgage broker for assistance.

More information or comparison

If you would like to talk to us confidentially about low deposit home loans and how they work, email us the form below or call at any time on 13 LOAN (13 5626).

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Some options: 95% home loans

Low deposit, 95% home loans provide up to 95% of the value of the property, and may even allow you to capitalise LMI (check with your mortgage broker). What you can use to make up your 5% deposit will vary between lenders – some will require the full 5% to come from genuine savings, while other will allow a mix of sources including genuine savings, monetary gifts, inheritances and government grants.

Mortgage payments versus renting

The availability of low and no deposit home loans means that the ‘tipping point’ between a mortgage payment and continuing to rent is far closer. And that is before you consider the advantages of property appreciation!