Buy a Home With No Deposit!

  • Struggling to save a deposit?
  • Prefer to keep your deposit for a rainy day?
  • Have the banks said “no” to you for not having a deposit?
  • Get approved for a home loan without the need of a deposit!
  • Rates are the same as normal loans and in some cases better!
  • Stop renting today and own your own home!

How can I get a home loan
with no deposit?

Unfortunately the days where banks lent 100% of the purchase price on a single property are over. However, there are still some nifty ways this can be done! Now let’s be honest.. Getting a no deposit home loan approved is not easy! It certainly takes specialist knowledge, planning and correct execution. Here are four ways you can get home loan with no deposit.

Guarantor Equity Gifted Money

With a guarantor loan you can borrow 105% of the purchase price and above, we've even seen up to 110%! You will need a family member who owns a property that has sufficient equity.

How does it work?

The bank's put what's called a "limited guarantee" on the guarantor's property. It's like an insurance they have on the guarantor's property that is only called upon if the bank is still at a loss after selling your property. Generally the limited guarantee is about 25% of the purchase price. Some banks are a bit greedy though and want 30% and above.

Pros
  • Borrow 105% of the purchase price
  • In some cases borrow 110% of the purchase and consolidate your debts!
  • Keep your entire deposit for a rainy day or to buy an investment property
  • Don't waste a cent by paying lenders mortgage insurance (LMI)
  • Get a discounted rate, even lower than a standard loan!
  • Buy a property now! Don't wait to save a deposit!
Cons
  • Guarantors are at risk for the limited guarantee amount for a short time. Generally the guarantee can be removed within 3 - 5 years and sometimes a lot sooner!
  • It becomes a pain for the guarantor to sell or refinance while the limited guarantee is still active. We strongly recommend against it!
  • Did you know most lenders don't accept guarantor loans?
  • Getting a guarantor loan approved is no walk in the park!

Why use a Specialist Broker?

Guarantor loans are specialist loans. They are complex and each bank has their own set of criteria for approval which is constantly changing. On top of that if the guarantor has an existing mortgage than you are now dealing with two banks who have different policies and procedures. Things can get quite interesting to say the least!

Mortgage Pros are guarantor specialists. We understand the different requirements each bank has and how to assess and structure guarantor loans. Don't risk getting your guarantor loan declined! Talk to us today!

Get your FREE consultation OR 1300 030 388

Using the equity in an existing property, can save you from paying a cash deposit. Generally you can access up to 90% of the value of your existing property plus the lender's mortgage insurance (LMI) on top.

Equity = Property Value - Amount Owing

How does it work?

An equity release is increasing the amount of your existing loan. This is done through a refinance or redrawing your available funds. The increase will be used for the purchase of your new property. In most cases, you can increase the amount of your existing property up to 90% plus LMI and secure up to 95% plus LMI for your new purchase.

Pros
  • No need to save for a deposit
  • Keep your entire savings for something better! Go on a holiday! Invest! Go have some fun!
  • Bigger borrowings equals greater home loan discounts!
  • This method is the secret to how people acquire multiple properties!
Cons
  • Depending on your equity position you may need to pay LMI
  • You could be paying your loan for longer! Often your current loan term gets extended again to 30 years.
  • If you cross securitise any default on the loan will affect all your properties!

Why use a Specialist Broker?

Equity lending is a complex area. The more properties you own the harder it becomes to get your next loan.

Mortgage Pros are equity specialists. We understand the different requirements each bank has and how to assess and structure equity home loans to maximise your borrowing capabilities amongst multiple financial institutions.

Get your FREE consultation OR 1300 030 388

Gifted money, a broad term, can mean funds gifted to you, money you have inherited, first home owner grants from the government or even money that you may have come across under your pillow!.. Yes, this apparently happens!

How does it work?

The maximum you can borrow from a bank is 95% of the purchase price plus Lenders Mortgage Insurance (LMI). This means you need a gift of at least 5% of the purchase price plus enough funds for costs such as stamp duty, legal fees and banks fees. In total if you are not getting any government grants, we estimate you need roughly 10% of the purchase price.

Pros
  • No need to save a deposit
  • Stop renting and own your home sooner
  • Beat the constantly increasing property prices
Cons
  • Higher costs in LMI
  • Only a handful of lenders will take on your situation
  • Some banks may charge you a higher rate depending on how low your deposit is.

Why use a Specialist Broker?

Gifted money is something most lenders are very uncomfortable with! There are very specific requirements for the banks to even consider these applications.

We are pros when it comes to building a case to get your loan approved with the banks. We know how to persuade the banks that not everyone is in the position to save a deposit especially when considering the rising prices of rent and cost of living.

While most other brokers would approach non bank lenders resulting in you paying a much higher rate, we know how to negotiate competitive interest rates with reputable lenders that are most likely to accept gifted money.

Get your FREE consultation OR 1300 030 388

  •  We were looking to get our next investment property and wanted to get the best deal. We spoke with two of the very large mortgage brokers and were pre-approved. A friend recommended we also speak with Mortgage Pros so we met with the guys and lucky we did!.

    They managed to refinance our existing property and give us money to fund our next purchase. The process was so easy. They also managed to get us a discount below the banks advertised rate! I cannot recommend Mortgage Pros enough. Thank you team and we look forward to working with you again for our next property purchase.

    Bilal and Jowan
  •  My circumstances were a little out of the box! I actually work for a bank as a branch manager so I feel like the dentist that recommends tooth paste in the the television advertisements by writing this recommendation! I had been working with the bank for over 10 years, however had recently moved into a new role and was subject to a 3 month probation period.

    The bank I work with declined my application on this basis alone even though I had a 20% deposit! Frustrated with my circumstances I did some research and came across the Mortgage Pros website! A quick phone call and I was reassured that I would most likely be eligible with a major bank! The end result was a pre-approval within 2 business days at a much lower rate than my own bank and also lower than the recommended banks advertised rates ! These guys are certainly pros! Thank you

    Naj
  •  Just wanted to say a very big thank you to Mortgage Pros! They were able to get us the approval without the need for a deposit in 24 hours. With their help we were able to make it just in time for auction. They also got us a better rate than all our family and friends!

    Peter Ha and Ashley Xu
  •  Mortgage Pros are superstars. Westpac had declined my loan for my next investment venture to buy 5 units on one title. I called Mortgage Pros and from there it was just magic. Not only did they get me a quick approval but they also negotiated a further interest rate discount for my other 6 investment properties. Mortgage Pros saved me thousands!

    Philip Cao

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the right home loan?

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