Buying a home seem out of range? Don’t have the 20% deposit banks and lenders demand? Then talk to the New Home Consultants at No1 Property Guide about our low deposit mortgages for first time buyers, previous homeowners, and investors alike.
Our specialised no or low deposit house and land packages are the perfect opportunity for renters to escape the rental nightmare once and for all. But we’re often amazed at just how many people don’t understand the options for getting into the market with a low deposit.
So, to help educate everyone on their factual new home options, Darren Walters, CEO and Founder of No1 Property Guide, has put together this article covering what you need to know to get into the property market with only a low deposit.
If you’re ready to take that first step and own your own home. Fill in our simple pre-qualification form. After that, one of our New Home Consultants will be in touch to discuss your factual new home options.
Do You Really Need a 20% Deposit?
You might have guessed already, but no! You don’t need a 20% deposit to get into your own home. In fact, here at No1 Property Guide, Darren has helped thousands of renters get into the market without needing the full 20% deposit most lenders say that you need.
The deposit you need can vary depending on your situation. So the best option is to fill in our pre-qualification form and talk to our New Home Consultants about all of your factual new home options.
Benefits of Low Deposit Mortgages for First Time Buyers
There are plenty of benefits to low deposit mortgages for first-time buyers, not least of which is the ability to even get into the market in the first place! Many first-time buyers are stuck in the rental nightmare because they can’t save up the 20% deposit lenders usually require.
Being able to get into the market without needing that large deposit is a huge plus for first-time buyers. Of course, there’s also the benefit of simply not needing to waste time trying to save. Potentially missing out on the capital growth of your home.
Lenders Mortgage Insurance (LMI)
One of the reasons low deposit mortgages for first-time buyers are possible is because of LMI. Lenders mortgage insurance (LMI) is a fee lenders charge that protects them in the event you default on the loan.
Generally, this is added on top of your deposit as an upfront fee. But some lenders will allow you to include it in your mortgage repayments.
Some government schemes and grants can help you get approved for a low deposit mortgage. Without you needing to pay lenders mortgage insurance. The First Home Loan Deposit Scheme (FHLDS) allows first home buyers to get into the market with only a 5% deposit while being exempt from paying LMI.
Most states also have a First Home Owners Grant of some kind. Giving first-time buyers additional funds to put towards their house. In QLD this is $15,000 that can be used as a part of the deposit or to cover the legal costs, stamp duty or LMI.
LMI may seem like just an extra expense, but it’s one of the best ways first-time buyers can secure a low deposit mortgage.
If you want to know more about LMI or how to buy your first home, fill in our pre-qualification form. Our New Home Consultants can then advise you on your factual new home options.
Low Deposit Mortgages for Investment Properties
Low deposit mortgages aren’t just for first-time buyers either! Investors and those who’ve owned before have access to these as well. While most of the government grants available don’t apply to investors. There are still ways you can access low deposit mortgages without being a first-time buyer.
If you already have an existing property, then leveraging your existing equity is a fantastic way to build your portfolio. By using the equity as your deposit, you can start building your portfolio and capitalise on the capital growth of your property over time.
Or, if you don’t have any existing properties, buying your first home and using that as an investment property is also an option. While most grants require you to live in your new home for a set period. Once that timeframe is over, you can do whatever you like with the property.
This means you simply need to live in your new home for 6-12 months. Then you can turn it into an investment property.
Happy Clients
At first I thought this was too good to be true, but straight after submitting my interest I received feedback. During the entire application process Clay kept me well informed and always made time to answer my never ending questions. Thanks to Darren and his team my dream is now reality.
Michele Stone
Thank you to Darren, Clay and the team for helping me and my partner secured a home loan in the middle of the pandemic. Clay and Taylor go above and beyond to make every step so simple for us. We can’t thank you guys enough, you guys are the best in the business. We appreciate all your help
Patinya Kanasa
I am so greatful for Darren, Clay and the team they have been so supportive throughout this journey they understand that the process of buying our first home is super stressful and they have taken care of us every step of the way. Very greatful to be approved and super excited to start the building process! Thankyou, Thankyou Thankyou
Monique Smith
Achieve your Homeownership Dreams with a Low Deposit Mortgage Today
Whether you’re a first-time buyer, have owned before or are looking to invest, getting your new home with a low deposit mortgage isn’t just a dream. At No1 Property Guide, we specialise in no or low deposit house and land packages. Darren’s unique pre-qualification system allows us to provide amazing new homes. Without needing the huge deposit banks and lenders usually ask for.
Want to know your factual new home options? Then complete our simple pre-qualification form. Once we have some basic information, our New Home Consultants will be able to assess your circumstances and discover all of your factual new home options. From there, we’ll simply guide you through the homeownership journey.
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