A 20% deposit and the 30-year variable rate mortgage were the standards in Australia for several years. Economic realities and a changing workforce led to several changes. Investors also play a small role in the new home loan products that have found their way onto the market.
If you’re interested in a no deposit home loan, you’re asked to apply with a guarantor. There are situations where the applicant cannot provide a deposit or a guarantor. This is a risky proposition for the home loan provider because the applicant has no skin in the game. There’s also no collateral being used to secure the loan. You can see how this works with our online home loan calculator.
Mortgage House is a lender that takes on applicants like the one described above and provides alternative solutions. In this case, an applicant may be offered a stretch package with a top-up facility. The stretch package acts as a bridge for a short period of time. The goal is to get the applicant from a point of no deposit to a point where they have more money to put down.
Then, the top-up facility allows the transfer of the stretch package balance to the new mortgage loan. It’s an alternative solution loaded with creativity.
No Deposit Home Loan Conclusion
A no deposit home loan is a risky proposition for any lender. It gets riskier if you’re not going to bring in a guarantor. Mortgage House takes pride in its innovative approach to lending and forward-thinking mindset. A combination of our current financial products can make this happen for you. Contact us for more information.
