For many would-be first home buyers, the ongoing cost of their rent can be a barrier to saving a sufficient deposit for their home loan. Many lenders recognise this and are giving first home buyers a lower barrier to enter by offering home loans with lower deposits.
How low deposit home loans work
Low deposit home loans allow home buyers to borrow up to 95% of the value of their new home, as well as up to 2% more to cover the cost of Lenders Mortgage Insurance.
You will still need to have some savings, as well as a stable income to prove you can service the loan.
There are several other ways to get a loan without a large deposit. Some lenders can also:
- Recognise regular rental payments as part of your genuine savings requirement.
- Accept a pledge from a family member which potentially allows you to borrow 100% of the value of your new home.
Getting the right low deposit loan
With numerous low deposit home loans out there, and several other ways to go about securing your loan, it’s important you get what’s best for you, not your lender. At AAA Mortgage Solutions we are highly experienced and have access to a huge amount of lenders, so if you get our help you can be rest assured we are acting in your best interests, and that we know what we’re talking about.
We place huge emphasis on educating our clients, so that they can be personally confident in their decision.
Let us keep you updated with the latest information so you can reach your goals faster.