First Home Buyers
If you are looking to buy your first home and finding it hard to save up a 5% deposit here is some options we can explore for you :
1. Showing good rental history without genuine savings
If you are currently renting a property through a Real Estate Property Manager we can use this as evidence of good money management to the lender. Just as long as we can show that you have sufficient funds to cover the 5% deposit from savings, sale of assets, family inheritance or a family gift we can look at getting you finance this way. We also have one lender that will be happy to assist if your renting privately and can show from your bank statements good rental history.
2. Family Equity Loan
Your parents may have a large amount equity in either their home or one of their investment properties. Even if your parents have a home loan with another bank and have equity available we may still be able to to do the home loan. I assist a lot of first home buyers with this option as this can save you a lot of money in mortgage insurance. The reason being is the bank will only take a 80% home loan over your new property purchase.
It is interesting to find out that some parents believe that to assist you this way they will be guaranteeing the whole home loan. This is where we can help explain that this type of home loan is generally limited to 20% of the purchase price less whatever savings you are contributing towards the property. The guarantee from the parents on their property is usually only held on their property for 3-5 years until such time that your property has gone up in value or your have paid the home loan down to a sufficient level that the guarantee can be released. As a general guide the guarantee can be released earlier this just means that you may have to pay some mortgage insurance if the total lending on your property is going to be more than 80%. With family equity home loans we do take the time to sit down with you and your parents and go through all the finance options so everyone has a good understanding of how it works.
If you’d like more information on how to access your first home, simply fill out the form below and we will contact you.