While the option to purchase a home without having to deposit any savings is still strongly demanded – the no-deposit home loan has long been consigned to the mortgage museum. Generally, lenders won’t lend more than 95% of a property purchase.
The reality is that even when the loan existed , it always came with additional conditions and costs including expensive Lenders Mortgage Insurance (LMI).
Often, consumers don’t realize the long term benefits of putting down an upfront deposit.
Typically a borrower can save thousands in both interest rates and insurance premiums by putting down a deposit on their home loan.
Another typical myth regarding no-deposit loans was that they didn’t require additional funds to complete the settlement.. Additional home loan purchase costs such as legal fees, property inspection and stamp duty still had to be met.
Today there are a number of low deposit options in the market but they come with different costs and conditions.
A Loan Market mortgage broker can talk to you about a variety of low deposit home loan options and explain the features they carry.
For more information, please contact:
Sunshine Coast Loan Market Mortgage Broker
Ph: 0421 054 432