Mortgage-Mart can offer no deposit home loans, which mean a borrower can purchase a residential property without the need for an upfront deposit (100 percent financing). This type of loan is available for either new or established homes that are either owner occupied or investment, and is ideal if you have good cash flow and a steady income, but low equity and no savings.
Borrowers are required to save enough funds to cover the upfront costs of buying a property such as stamp duty, conveyancing and loan application fees. The home loan may then be approved without the need for a deposit if borrowers can demonstrate a satisfactory savings history. Some lenders may charge higher interest rates and borrowers will usually need to pay for lenders' mortgage insurance to cover the lenders risk if you default on loan repayments.
Borrowing requirements on no-deposit loans are generally stricter as lenders seek to make sure their money will be repaid. Some lenders won't fund particular types of property, like studio units, units in large blocks or homes outside metropolitan areas and the terms and conditions of the home loan are usually very rigid and inflexible. For instance, termination or exit fees may apply if you pay out the loan within the first 3 years.
If you need more information on these types of home loan products and how they suit your individual home loan needs, enquire online or call 1300 720 623 to speak with an experienced Mortgage-Mart consultant.
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