06/12/2024
Low Deposit? Here’s How You Can Still Buy Your Home.
Dreaming of buying a home but short on a large deposit? Explore these pathways to make your dream a reality:
1. First Home Guarantee Scheme
Eligible first-time buyers can purchase a home with as little as a 5% deposit, with the government acting as a guarantor, allowing you to avoid Lenders Mortgage Insurance (LMI). **
2. Lenders Mortgage Insurance (LMI)
With a deposit as low as 5%, LMI enables you to secure a home loan sooner. While it adds to your costs, it can be a strategic move to enter the market earlier.
3. A Deposit Boost Loan
A Deposit Boost Loan covers up to 20% of your property's value, allowing you to secure a traditional home loan without a hefty deposit. An upfront fee of 1.1%–2.2% of the property’s value applies, and the deposit loan is repaid over 15 years at a higher interest rate than standard home loans. **
4. Guarantor Loans
A family member can act as a guarantor, leveraging their properties equity to help you secure a loan without a large deposit, potentially avoiding LMI.
5. First Home Owner Grant (FHOG)
This one-time payment ranges from $10,000 to $20,000, depending on your state or territory, and can be used towards your deposit when constructing or buying a newly built property. Eligibility criteria vary, so check your local State or Territory requirements.
Don’t let a small deposit deter you from homeownership. Explore these options to find the best fit for your circumstances. Ready to take the next step? Let’s discuss your pathway to buying your home! 📩
