Three ways to get your first home loan

Hi I'm Richard, Home Loans Producer at findercom

au Australia's property market seems out of control If you're a first home buyer you're probably thinking "How can I ever get my own home?" But there are options out there for borrowers with small deposits or even no deposit at all Here are three ways you can get your first home loan

First, you should consider a low deposit home loan Normally home loans require a 20% deposit and if you are buying a property worth say $700,000 that would require a deposit of $140,000 That's a lot of money But with low deposit home loans you can get a deposit that's 10 or 5% of the property's value Now that same property worth $700,000 would only need a 5% deposit of $35,000

Sounds great right? But there is a catch You'll have to pay lenders mortgage insurance on a low deposit home loan Lenders mortgage insurance can add several thousand dollars or more on top of the cost of your home loan But you can avoid lenders mortgage insurance and get a low deposit home loan You'll just need a guarantor

A guarantor loan lets you borrow 95 or even 100% of a property's value but there is a catch You'll need a trusted person to guarantee your loan Your guarantor takes a lot of risk If you can't pay back your debt they'll have to It's a risky option but the rewards are great

You can get your home loan with a low deposit and avoid lenders mortgage insurance But you do have one more option Most lenders will accept a cash gift or inheritance from your parents to form your deposit as long as you have 5% in genuine savings In other words you would only need a 5% deposit and you can still avoid lenders mortgage insurance You can make up the other 15% of your deposit by using a cash gift from your family

With the right kind of home loan and a bit of help you can buy your first home faster than you probably think and you can start right now by comparing home loans at findercomau