Lenders/credit providers vary from offering home loans with more-than 100% LVR. But, many lenders offer no deposit (low deposit) home loan. It is perfect chance of obtaining a home mortgage without any savings for slightly higher interest rate. A finance broker will assist you in obtaining the loan package.
Since the global financial crisis mainstream lenders/credit providers have made numerous changes to their lending criteria, and it is now not easy to get a 100 per cent-plus home loan deal. However, there are some specialised lenders/credit providers who have recognised the difficulty that many aspiring home owners experience when searching for home loans and so, have introduced no deposit (also called low deposit) loans, said Mr. Singh of Singh Finance.
Mortgage/Home Loan Products available
Here is a list of no deposit (low deposit) mortgage home loan products for you to consider that will:
>> Allow you to borrow up to 96% of the purchase price
>> Allow you to capitalise the Lenders Mortgage Insurance (LMI) on top of your loan amount, which can bring the total (LVR) to 97 per cent or 98 per cent
>> Allow you to borrow a maximum (LVR) of 100 per cent including LMI costs
>> Allow a maximum (LVR) of 120 per cent with LMI capitalised. But a "guarantor" is required, and
>> Even recognise 12 months continuous rental payments made by you as part of your genuine savings requirements
It is important to remember that the risk to the specialised lender/credit provider is greater for no deposit (low deposit) loans. And so, you will pay a "premium" interest rate for the privilege, usually about 2% higher than the current market rate.
Application Assessment Process
When assessing your eligibility for a no deposit (low deposit) home loan, the specialised lender/credit providers will adopt a stringent assessment process. They will be looking closely at your capacity to repay the home loan. To work out what assessment criteria applies to you; speak to an expert finance broker. Here, are a few tips to help you:
>> Ensure you can demonstrate a strong stable income
>> Try to show at least some genuine savings or show your 12 months continuous rental payment statements, and
>> Ensure your personal debts (credit cards and personal debts) are under control before committing to a no deposit (low deposit) home loan
Seek Expert Advice
As with any aspiring home owner, buying your first home at any stage of life can be an overwhelming process. Not to mention knowing which specialised lender/credit provider is willing and able to assist you can be daunting. So, having an expert finance broker on your side will save you lots of time and heartache.
So, before you think it is too difficult to get a home loan, don't despair. The key to finding the right loan, comes down to employing the services of an expert and professionally qualified finance broker, who specialises in all loan products and finance solutions, said Mr. Singh of Singh Finance.
He said, you need to sit down with an expert finance broker who will be able to explain that there are a number of specialised lenders/credit providers offering high "Loan-to-Value Ratio" (LVR) home loans that will allow you with no savings behind you to take on a mortgage home loan debt.
So, don’t worry if you want to obtain a no deposit (low deposit) home loan. Contact a professionally qualified finance broker to help you.
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