No Deposit Home Loans:

What is it?
A No Deposit Home Loan allows you to borrow more than the purchase price or valuation of a property. It allows you to borrow 106% of the property value.  It is intended for established residential property ONLY and covers the costs of; stamp duty, legal & registration fees.

 

There are NO ONGOING ACCOUNT KEEPING FEES

 

Why should you consider it?
The No Deposit Home Loan has been created for those who dream of entering the property market, but for whatever reason, have been unable to save for a deposit.

"You've got the lifestyle but nowhere to live it"

The primary Australian dream has always been to own your own home.  This dream has been realised by some as a result of gradually saving the usual 10% deposit over many years.  For others, unfortunately, the Australian dream has never come to fruition.

In recent years it has become a well known fact that the potential home owner has found it increasingly difficult to save the deposit necessary to purchase their own home.  In today's society, the rising costs of necessities, not to mention luxury goods, have over committed income earners in ways they would rather forget.

This, along with escalating property prices and inflexible lending institutions, has meant that home ownership is virtually unattainable.  To make matters worse, the added costs of State Government Stamp Duties almost ensures that the Australian dream will remain just that...a dream!

Some individuals, perhaps yourself included, have in the past made the effort to save but as house prices rise, the incentive has slowly withered.  "Why should I commit to saving for a house when I won't have a house to show for it?"

 

Can you get a No Deposit Home Loan?
Many lenders are not willing to let you borrow 100% of the purchase price, let alone borrow over 100% to cover the associated costs of purchasing a property (e.g. stamp duty, legal’s, etc).

Fortunately, for the potential home owner, the No Deposit Home Loan could be for you.  Banks and other lending organisations are now recognising that the potential home owner has – well – potential!

What they are looking at when determining whether to give you a No Deposit Home Loan is your potential. This is whether you have secure employment and a good steady income?

The first 100% 'no deposit' loan was settled by the product provider on 30 November 2000.  They have since put 3,000 borrowers into their first homes with 'no deposit', lending 100% of the purchase price.  They are Australia's only specialist no deposit lender.

 

How we can help you?
If you want to buy a house and are having trouble saving a deposit to apply for a loan then a No Deposit Home Loan may be your answer. 

Please contact us for a free no obligation appointment where we can look at your individual situation.

 

F A Q

What is The No Deposit Home Loan?
The No Deposit Home Loan is a new and unique home loan product, aimed specifically at the first home buyer.

The No Deposit Home Loan specialises in assisting potential home owners purchase existing residential property without the normal deposit requirements of the traditional lending institutions.

Providing you qualify you can borrow up to and over 100% of the purchase price of the property.

 

How much deposit do I need?
You do not need to have a deposit to purchase your property with the No Deposit Home Loan.  We will lend you the full purchase price* of the property plus most of the costs associated with a property purchase.

 

 What are some of the costs involved in buying a property?
The major costs that need consideration are:
• Stamp duty on the contract price of the property
• Mortgage duty
• Solicitor's costs

 

Are there any monthly or continuing fees on my home loan?
No.  Once your loan is established, there are no continuing monthly fees.  Other fees and charges may apply and are set out in your loan contract.

 

If my application is declined, is my application fee refunded?
If the No Deposit Home Loan incurs any costs in processing your loan application, you will be refunded your application fee less those costs.

 

Can I make additional repayments?
Yes.  All repayments in excess of the minimum monthly repayment amount are deducted from the principal of the loan.  However, you must pay the minimum monthly repayment every month regardless of how much money you have deposited to the loan previously.

 

What guidelines are you working with to ensure that customers don’t over commit themselves?
The No Deposit Home Loan operates within the statutory framework.  “The Lender” is a member of the Mortgage Industry Association of Australia and committed to ethical and responsible lending.  Each loan is considered on its individual merits with strict serviceability guidelines in place.

The No Deposit Home Loan focuses on the borrower’s ability and attitude to service a loan based on the conduct of previous and current commitments.

 

What if I have had a default or any judgments listed on my credit report?
Unfortunately, with no deposit required and the amount of funds we are providing to purchase the property, we are unable to help customers with any of these entries on their credit report.

 

In which geographic areas will the No Deposit Home loan lend?
The No Deposit Home Loan is available for properties in selected metropolitan areas, greater metropolitan areas and regional areas with a minimum population of 35,000.  Rural properties are unacceptable.

 

What kind of properties will The No Deposit Home Loan lend on?
• Freestanding houses
• Semi-detached houses
• Town houses
• Strata units
All properties must be in fair to good condition.

 

How long will it take before the loan application is approved?
Provided your loan application has been completed correctly (and you qualify), you will receive a conditional loan approval within 24-48 hours.

 

Financial Advisers Australia - Australian Credit Licence Number 388789  

Prepared by John Hehir FAA (Financial Advisers Australia).