🏠 How can a Nil Deposit home loan be possible?
✌️ These days there are 2 main ways to get a true zero deposit mortgage.
1. Using equity in a Guarantor's property.
This is called a "Guarantor Loan" or "Family Pledge" loan.
Typically a family member's real estate is used as an extra security for the loan of the borrower.
There is a bit of paperwork and understanding involved here.
2. Using equity in your own property.
This is if a borrower already owns property, and wants to buy another.
It can be "Cross-collateralised" or "stand alone" security (depending on needs and objectives).
The whole purchase price plus costs could be borrowed using both properties.
🦕 Decades ago, there were more 100% +costs loans available without the above options, but most lenders and mortgage insurers moved away from this.
"Just because you can, doesn't mean you should"
As responsible lenders, we always still need to assess capacity to make the ongoing repayments!
Ideally, a new borrower borrowing 100%+ of the purchase price will have a history of making repayments to a home loan, or a history of making rental payments - for example. At the very least, good evidence of saving of some sort over a period of time.
Truly's advice, financial services and property strategies are complimentary. We do this for the best interests of our clients and we relentlessly strive to serve as the best mortgage brokers with uncommon excellence!
James Brett. Principal Mortgage Broker ☎️ 0439 591 759
Victor Simone. Principal Mortgage Broker ☎️ 0438 257 888
Nermalee Bowe. Senior Mortgage Broker ☎️ 0431 274 554
Dragan Disljenkovic. BD & Relationship Manager ☎️ 0422 435 900
Credit Representative Numbers 521733, 550284 & 547037 are authorised under Australian Credit Licence 389328
