No Deposit Home Loans

No deposit home loans are now very common. As it gets harder to save deposits for property, more and more no deposit home loans are becoming available at increasingly competitive rates and conditions. Not all lenders offer them for all postcodes in Australia and you will find that no deposit home loans typically come with more 'conditions' and 'serviceability' requirements, but for many Australians, particularly professionals who can service a loan but maybe not save a deposit, no deposit loans are a fantastic way to get out of the rent cycle and into your own property. There are many options with no deposit home loans and typically these relate to the way you choose to amortise the related fees or make repayments. Your options are probably broader than you think and this market is increasingly competitive, so talk to your local mortgage broker to work out which lender and offer is best for you.

Some Options: 100% no deposit - no application - 'quick start' Home Loans

Normally you have to save at least a 5% deposit plus costs before applying for a loan. With a no-deposit loan, you can borrow 100% of the purchase price of the property, but you still have to pay your normal property purchase and finance application fees and lender's mortgage insurance. One X Inc Finance lender, St George offers a 'Quick Start' option which has no LMI or loan extension fee. While it does have a higher interest rate and higher early termination fee, it could be a good option for some professionals.

Another X Inc lender, FirstMac offers a 100% home loan up to $500,000 with 100% offset, Visa debit card and interest only up to 10 years, This loan is available for both owner occupier and investors. Economy Home Loans offers a great low rate 100% home loan with no application fee.

These are just a couple of the options available and if you are a professional on a good income, want to get out of the rent cycle faster or are an investor - talk to your local mortgage broker about how the different 100% home loans work.

More Information or comparison

If you would like to talk to us confidentially about 100% or no deposit home loans and how they work, email us the form below or call at any time on 13 XINC (13 9462) and we will return your call within 2 business hours.

how are eligible postcode decisions made?

Postcodes eligible for 100% home loans are revised by lenders ongoing. Decisions are made based on the credit risk profile of the postcode, which is in turn based on the postcode's valuation history. If you are considering a 100% home loan, make sure when you are discussing your finance application with your mortgage broker that you let them know the postcodes you are looking in.

mortgage payments versus renting

While the rising cost of real estate is bad news for potential home owners wanting to get out of the rent cycle, the increasingly competitive 100% offers from lenders means that you can now get great interest rates and much more flexibility with many 100% home loans. In some australian markets, this 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!