No deposit loans

  • Little or no deposit required
  • Must have strong financial history
  • Must have good credit position
  • Guarantor of the loan helps
  • Get into property sooner
  • Stricter lending conditions

No-deposit home loans are ideal for purchasers that do not have sufficient funds for a deposit on a home loan, but are able to demonstrate the financial stability to make the monthly repayments.

These loans are also attractive for investors who want to maximise the gearing for taxation purposes or income return when purchasing investment property.

Lenders generally apply a higher debt-servicing ratio (the level of debt you're carrying compared to your income) to these types of home loans. They are ideal for people with a good income and credit history who, for different reasons have been unable to save a deposit or wish to invest without deposits. Having a guarantor of the loan helps.

No-deposit home loans are not as common and are far more difficult to obtain so it's important to discuss your needs with a Time Finance Mortgage Broker to see what type of loan can be attained for you.

Benefits:

  • Allows you to purchase a property without having to save a deposit
  • You can enter the property market straight away
  • Generally allow for additional payments and redraw facilities
  • Allows investors to maximise gearing and taxation benefits

Disadvantages:

  • Usually have very strict application requirements
  • May be available for certain properties only, and particular areas only
  • May have higher fees and interest rates
  • Interest rates will increase if official rates increase
  • Risk that should the property market decline that the value of the property is less than the loan on the property
  • You will be required to have Lenders Mortgage Insurance (LMI)

With hundreds of different loan products in the market from all lenders, it can be a daunting time to go shopping for a home loan if you are doing it yourself or don't know what to look for. The benefits of why you should use a professional Time Finance Mortgage Broker are guaranteed.

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FAQs
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Depends on the size of your deposit, the value of the property, and your servicing capacity (based on your income and how much you are able to repay).

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Most mortgage lenders will require a deposit of 20% or more of the property price. Less may be required however will require mortgage guarantee insurance in most cases

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Depends on the type of loan, intrerestr rate, payment term, and whether you pay monthly or fortnighly. Use us mortgage calculators to guide you.

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Every state is different and may depend on the value, whether you are building or buying an established home. Read more in our FHOG article

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It is a rate that includes both the interest rate and the fees and charges relating to a loan, combined into a single percentage figure that lets you compare loans from differengt lenders on a fair comparison.

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This 'in principle approval' is usually valid for 3 months. Gives you the confidence on how much you can borrow before your purchase a property.

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The cost of Stamp Duty varies between States and Territories. Subject to your personal loan circumstances, the cost of stamp duty can be included in the loan amount you borrow.

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