Your home is as important as your family. The choice of the perfect home is essential to have a perfectly tailored system to suit your everyday needs and situations.
Rent, flatmates and staying with parents are things of the past, with people opting for no deposit loans. Redraw facilities along with the feasibility of making additional payments turn out to be huge crowd pullers when no deposit loans are concerned.
No deposit loans provide you the flexibility of adjusting a part of your home loan without any deposit. All they require are guarantors. A portion of around 95% to 97%of the initial purchase price is guaranteed by the lender in this case. A 100% loan facility is guaranteed to borrowers by a few lending agencies, who can just go on to show more than one employed members in the family.
Best friends to the first-home buyers, a no-deposit loan covers the lenders risk, and the only payment to be made in terms of interest is the value of the lender’s mortgage. Siblings can also turn out to be guarantor in this case, with the applicant only requiring providing an RAMS.
Only 5% of the entire amount of the house loan is to be arranged by the borrower. It also does not require being part of your genuine savings. It can be inheritance or tax returns. The only requirement is for the money to be present in your name as on the given date.
The history to this type of loans comes with a strong evidence of parents backing up the guarantor’s needs. The savings in this stage turns out to be huge at the RMI required just falls to zero. The basic requirements however have to be met with the promise of a reliable income and strong employment background.
Varying with the amount you require, the deposit part can be completely skipped off. Any increases in the LVR, exceeding 85%, the guarantee of an additional savings of 5% in terms of genuine savings comes up. Renovations and home improvements are other facilities as offered by the no-deposit loans. Construction purposes for extra rooms or expansion is also a part of the no-deposit loan facilities.
Once you have decided on the kind of property that you are looking forward to, comes the next big step of finding your bank. One has to be entirely sure that the bank that they are going to caters to his/her needs specifically. Your bank will only engage in finding out your repayment capabilities, with the proportion of the property value ratio that the loan amount is based on.
Lenders have also brought forward a new concept wherein you can avail a home loan on low deposits too. There may not be a need to procure the entire amount for few borrowers and in this case all that is required is ensuring the guarantor factor.
A huge variance on these low deposit loans are available ranging from key start loans-wherein only 2% deposit in required; to a guarantor home loan and a parent assist loan. The equities, on the names of the parents; as on the given date, reduces your deposits if you are opting for the guarantor no-deposit loan.
By Ella Mathews