We work closely with clients as trusted advisors and are accessible to clients when needed. 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. Self-employed and having trouble proving your income? Maybe you’re a contractor or casual worker? Whatever your situation, we offer solutions for all types of clients’ income sources.
What Is A Low Deposit Home Loan?
Sometimes you can secure similar rates to a standard home loan, or even other benefits such as offset account feature, extra repayments, and fixed interest rates. This will all depend on your situation, however, so it’s important to consult a professional for advice if you are considering taking on a low deposit cheapest home loan.
How Does A Low Deposit Home Actually Work?
This also gives you a broader range of ways you can meet your minimum deposit, such as your superannuation, the First Home Owner Grants, and more.
It’s important to remember that just because you can borrowed a larger amount, it doesn’t mean that you should. You will still need to ensure that you can comfortably make the repayments on your loan, even if interest rates rise.
How To Get Approved For Low Deposit Home Loans in Melbourne
Credit History
Reliable Income
Stable Employment
Actual Savings
Property
Available Deposit Options
Talk to a mortgage broker today to see how much you could borrow with a low deposit home loan.
How Much Can I Borrow?
Low Deposit
While your typical home loan deposit is 20%, a low deposit home loan will usually allow you to borrow up to 95% of the value of the property. Some lenders will even let you borrow up to 97% of the loan, depending on your circumstances.
Usually, low deposit home loans are usually given for deposits of 3%, 5%, 10%, and 15%. These are considered high-risk loans and come with several strings attached, but you will be able to borrow more than you would with a typical home loan.
If you’re seeking the lowest deposit home loan, our team can help you work out what that number is, based on your unique personal and financial circumstances.
No Deposit
You will need meet the conditions that different lenders may impose for no deposit home loans, but a mortgage broker will be able to help you here.
What You Should Know About Low Deposit Mortgages
Low Deposit Premium (LDP)
All Fees Are Capitalised
Most lenders will require that all fees and charges are added to your loan amount, meaning you’ll be paying interest on them. This is called ‘capitalisation’. So, if you have a $400,000 loan and the lender charges a $2000 establishment fee which is added to your loan, you will actually be borrowing $402,000 from the outset. You’ll pay interest on this entire amount, as well as any additional interest that is added to the loan over time. For example, if you cannot make payments on your loan for a time and $10,000 is accrued in interest, that amount is added to your loan’s total. This means that next time, the interest added will be a percentage of (your loan amount + $10,000).
Property Share
With a Low Deposit Home Loan, you may be able to purchase a property with another person who is also looking for finance, such as family or friends. This means that both of your incomes will be considered when assessing your loan application, giving you a better chance of securing finance.
Guarantor Support
This option can be useful if you have bad credit, are considered a high-risk borrower, or simply don’t have the funds to put down a full deposit. It may help you to secure finance when you otherwise would not be able to.
About Low Deposit Home Loans For First Home Buyers
Choosing A Lender For Home Loans With Low Deposit
Applicable Fees And Taxes in Melbourne
There are also variable and fixed interest rates to consider, with both affecting the long-term results of your loan and your ability to pay it back.
At Break Free Home and Commercial Loans in Melbourne, we can help you compare low deposit home loans in Melbourne to ensure you’re getting the best long-term loan options. Discuss your needs with a qualified home loans expert today.
Home Loans Low Deposit Calculator
Do You Have Questions? We Are Ready to Answer
Get in touch with us today to discuss your needs. We’re here to help you find the best Low Deposit Home Loan for you!
Frequently Asked Questions
What Is A Low Deposit Home Loan?
What Are The Benefits Of A Low Deposit Home Loan?
The main benefit of a low deposit home loan is that it can help you buy a property sooner than you may otherwise be able to.
What Are The Drawbacks Of A Low Deposit Home Loan?
What Are The Benefits Of A Low Deposit Home Loan?
How To Choose A Lender For A Low Deposit Home Loan?
There are a few different ways to choose a lender for a Low Deposit Home Loan. The first is to speak to a mortgage broker. A mortgage broker can help you compare home loans from a range of different lenders. They can also give you expert advice on which loan is right for you.
Another way to choose a lender is to do your own research. This involves comparing home loans online and reading customer reviews. Once you have found a few lenders that offer Low Deposit Home Loans, you can then contact them directly to discuss your options.
When choosing a lender for a Low Deposit Home Loan, it’s important to compare interest rates, fees and features. It’s also important to make sure that the loan suits your financial needs and goals.
How Can I Get A Low Deposit Home Loan?
How To Get Approved For Low Deposit Home Loans in Melbourne?
The approval process is different for every lender, especially if you’re trying to secure a low deposit home loan. Our brokers can help you understand what you need to do to get approved. We have a wide range of lenders on our panel, so we can help you find the right one for your needs.
If you’re ready to start looking for Low Deposit Home Loans in Melbourne, contact us today. Our experienced mortgage brokers can help you find the right loan for your needs and guide you through the approval process.
Contact our team
We love to hear from each and every one of you. Please feel free to reach out to us today!