While this may seem like an obvious solution, as a future first homeowner you may be unaware that some lenders will accept deposits that are less than 20% of the purchase cost. The catch here is that you may be asked to pay Lenders Mortgage Insurance (LMI) to protect the lender. While this does involve an added cost, it can often be added to your home loan and means getting in the market sooner rather than later.
Often it can be a struggle to break into the market in the suburb you want to live in. Rent-vesting means buying a property somewhere more affordable and renting it out while you continue to rent to home you live in. This strategy allows you to keep your current lifestyle, while still entering the property market. As an added bonus – all associated costs will become tax deductible.
If your circumstances are right, some lenders will offer 100% finance. This is a great option for couples who can combine their income, or singles who earn a decent wage as they can get into their first home without having to save anything. Take this quiz today to find out if you’re eligible for a no-deposit home loan with Enigma Property Group.
If you are struggling to get finance on your own, consider buying into a home with a friend, family member or partner. A joint income opens up a much wider range of lending options. While this option might not always be viable if only one of you wants to live in the home, consider purchasing an investment instead.
If a member of your family owns property, they may be able to be a guarantor for your home loan. What this means is that they can offer part of their own home as equity to make up the difference between what you have saved and the 20% standard deposit. This will allow you to have a smaller deposit without having to pay LMI.
Enigma Property Group helps first home buyers get into the market through a range of avenues that do not require having a deposit saved. Take our eligibility quiz today to find out if you qualify for one of these options.