If you want to buy your own home but do not have a deposit, you may still qualify for a home loan in Australia. Let us see how you can do that –
Using a Personal Loan for Deposit
If you have a good income source then there are lenders that may allow you take a personal loan and accept it as deposit for a home loan.
A Guarantor Home Loan
In this type of loan, your parents accept and sign an agreement with the lender that states the lender can sell your parents’ house to recover the money in case if you do not pay back your home loan. This agreement also allow you to borrow up to 110% of the home buying price.
Gift Money
You can buy a house if your parents gift you 5% to 15% of the cost of buying home. There are close to 60% of first homebuyers in Australia that take help from their parents while purchasing their first home.
Using Your Self-Managed Superannuation Fund (SMSF)
You can purchase a home in Australia if you have over $100,000 in superannuation. The only limitation is that it should be an investment property rather than a property you will use to live in yourself.
Using the Equity Base
If you already own a property in Australia then it will be easier for you to purchase a new one. You have to agree and sign an agreement with the lender that you will give up your current property if you are unable repay your mortgage.
Here are some more tips in case if you do not have the above listed options to get a home loan in Australia –
Save Money
Stop doing avoidable spending and start doing regular deposits in your savings account. Saving up to 5% for initial deposit through your regular savings will be considered as genuine savings by the bank and you will be most likely to qualify for a home loan.
Stop Switching Jobs
Stop changing jobs, if you do so, your efforts in applying for a home loan will go in vain. Banks look for borrowers who are stable in their jobs and prefer those who are at least employed for 2 years in the same organization.
Payoff Debts
Making payments on time of utility bills, credit card payments, loan repayments and taxes strengthen the possibility of getting your home loan approved. Try paying off all your unsecured debt way before you apply for a home loan. The less you owe, better are the chances of getting an offer is per your needs.
