House deposits are a core part of buying a home. But how important are they really? While most lenders will demand a 20% deposit for a new home, it’s becoming increasingly common for many home buyers to forego a deposit when purchasing their new home.
Ready to find out how you can get into your new home without a 20% deposit? Then keep on reading!
Why Do Lenders Require House Deposits?
House deposits have some benefits, both for the lender and the home buyer. For lenders, it’s a way to mitigate risk, by having a bigger buffer in case you default. For you, it means a lower purchase price, lower repayments and less to pay back in total.
However, there are many downsides to these large deposits. Which is why Darren created his no or low deposit new home system.
How to Secure a New Home Without A House Deposit
While most lenders require 20% deposits, there are ways you can get a home loan without one.
Lenders Mortgage Insurance (LMI)
LMI was created specifically to help home buyers get approved for home loans without a deposit. It’s essentially another fee you pay on top of your mortgage that protects the lender if you default on the loan.
Guarantor home loans are another option to help get you into the market. Simply put, these are when someone, usually a parent or sibling, acts as a guarantor for the loan. It doesn’t have to be for the full amount, and many lenders will allow a guarantor to simply guarantee the deposit, or a fixed amount, to lower the risk.
Of course, this option is only available if you have someone to act as a guarantor. Unfortunately, not everyone has access to this. Which is why Darren created his no or low deposit new home system.
Darren’s No or Low Deposit New Home System
The best option if you want to get into the market without a house deposit is to contact Darren Walters and the No1 Property Guide team. With more than 20 years’ experience in property and finance, Darren knows what it takes to get into the market.
By carefully assessing your situation at the start of the process, we’re able to get an accurate understanding of what you can and can’t do straight away. We primarily work off 2 pieces of information. Your income versus your debts.
If you have a high enough income to cover your existing debts and your mortgage repayments, then we can almost always help!
Following this, we begin the process of looking for land in your desired area. As well as a suitable floor plan and house design.
Darren has built close working relationships with all the major builders and developers over the years. Giving us access to the most prestigious estates and developments in the region.
This is also how we’re able to offer our fixed price, full turnkey house and land packages.
Read More About House Deposits
- Darren’s Top 6 Tips on How to Invest in Property in Australia
- Use a No Savings Home Loan to Get into Your Own Home
- What’s My Property Worth? – Accessing the Equity in Your Home
- What is My Borrowing Capacity?
What is a Fixed Price, Full Turnkey House & Land Package?
A fixed price, full turnkey house and land package is a specialty here at No1 Property Guide.
Simply put, it means that when we hand you the keys, your new home is 100% ready to go. In fact, you can just ‘turn the key’ and move in!
What makes our full turnkey homes different from the rest is that they are truly that, full turnkey. Many builders will offer ‘turnkey’ homes that aren’t 100% ready to live in. Sometimes they won’t include a letterbox, clothesline, and sometimes even a driveway.
In these cases, you’ll need to pay to have these ‘extras’ added out of your own pocket. But with No1 Property Guide, we include these costs in your package right from the start. So you know that when we give you your fixed price. That is all you will need to pay. No hidden costs or nasty surprises.
What if I Have a House Deposit Saved?
If you have a house deposit already, great! Being able to put money towards your deposit is a great thing and will help you lower your overall loan repayments. One important thing to note, however, is how you got your deposit.
One of the lender requirements for a deposit is that the majority of it is “genuine savings”. This means that you, and anyone else on the application, had a savings plan and put money aside over time to save it. A gift from a family member generally won’t count as genuine savings. Some lenders may not be willing to include that in their assessment.
Let Our New Home Consultants Guide You Into Your New Home
Whether you’re just starting your journey, or you’ve been trying to save for years, No1 Property Guide is here to help. Darren has helped thousands of renters achieve their homeownership dreams and it could be your turn next.
Your first step is to fill in our pre-qualification form. From there, our New Home Consultants will go over all your factual options and show you exactly what you can and can’t do using Darren’s no or low deposit new home system.
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