Our brokers work hard at understanding our client’s unique circumstances and helping them overcome common home loan challenges. Whether you’re a first home buyer or an experienced investor, we’ll help you find the best home loan for your situation. Whether you’re self-employed and have trouble proving your income or you’re a contractor or casual worker, we offer solutions for all types of clients’ income sources.
If you’re a student looking to buy a home, you may be wondering if you can qualify for a mortgage. The good news is that there are several options available to you, even if you don’t have a lot of money saved up. Work with qualified brokers from Break Free Home Loans. Our experts can help you find a loan from the right lender with flexible repayment terms to suit your financial needs. We work with a wide range of lenders who provide home loans for students. More importantly, we can help you complete an application on your behalf that addresses all the eligibility requirements. Want to maximise your chance of loan approval? Apply with us today.
What Is A Home Loan For Students?
How Much Is Possible To Borrow
However, most of the time, you’ll be able to borrow up to 70% to 85% of the property value if you’re employed and have enough savings. Things like your HECS and other debts will affect the amount you can borrow. It’s usually easier to get a home loan for students when you are not on student loans. For instance, home loans for PhD students who have their tuition settled and earn a regular income are usually quite straightforward to obtain.
Many borrowers also ask; Can international students buy a house in Australia? If you are an international student, you will also be seen as higher risk and may be asked to pay a higher deposit at 20% and 5% extra for stamp duties.
How To Get A Home Loan As A Student?
A guarantor can be anyone from your parents or other close relatives who agrees to guarantee your mortgage using their own property as a security for the loan. With a guarantor, you can apply for a home loan without a large deposit or having to pay the Lenders Mortgage Insurance (LMI) charges.
Use The First Home Loan Deposit Scheme
Interest-Only (IO) Loan
There are also interest-only home loans for students. These have lower initial repayments than principal and interest home loans. For a period of time, usually 1-5 years, you only need to pay the interest component of the loan and not the principal borrowed. This means your repayment amounts are significantly reduced. However, your interest bill is usually higher over the life of the loan than if you’ve paid your principal and interest. You may also be asked for a bigger deposit by the lender.
Can International Students Buy a House In Melbourne?
- Offering a higher deposit (at least 20% and an extra 5% to cover stamp duty)
- Have a full-time working partner
- Have good credit history in Australia
- Demonstrate good saving habits while studying
Accepted Visa Types
- Student Visa (Subclass 500)
- Skilled Recognised Graduate Visa (Subclass 476)
- Skilled Graduate Visa (Subclass 485)
- Skilled Regional (Provisional) Visa (Subclass 489)
You may also need clearance from the Foreign Investment Review Board (FIRB) to purchase a residential or investment property in Australia.
About LMI Waiver
Is Taking Student Home Loans Worth It?
You shouldn’t just estimate the cost of your loan, you need to carefully budget and consider your lifestyle and expenses. Can you make your repayments while still studying and working part-time? Take into account your current and future plans, and whether they will affect your ability to repay your loan. Don’t take on a loan you’ll risk defaulting on as this can mean a major hit to your income, credit score and ability to apply for finance in the future.
How To Choose The Best Home Loan For Student
One of the first things to consider is whether you will be able to afford the monthly payments. Home loans for students usually have higher interest rates than traditional mortgages, so your payments could be higher. You’ll also need to factor in the cost of property taxes and insurance.
Another thing to think about is how long you’ll need the loan for. Home loans for students typically have shorter terms than traditional mortgages, so you’ll need to make sure you can afford the payments when the loan is due.
If you’re not sure whether you can afford a home loan as a student, talk to a financial advisor. They can help you understand your options and make the best decision for your situation.
Have Any Questions?
Frequently Asked Questions
Can Students Buy A House In Australia?
When applying for a home loan as a student, you’ll need to provide proof of income, employment, and assets. You’ll also need to have a good credit score to qualify for a loan.
What Is A Home Loan For Students?
The interest rate for a home loan as a student will depend on your credit score and the type of loan you’re applying for. However, most lenders offer competitive rates for student loans.
How To Get A Mortgage As A Student?
You may also need to provide additional information, such as your school transcripts or proof of enrollment. Be sure to ask your lender what documentation they require before you begin the application process.
If you’re approved for a home loan, you’ll need to make a down payment. The size of your down payment will depend on the type of mortgage you’re getting and the lender’s requirements. In some cases, you may be able to get a mortgage with no down payment at all.