How Can I Get a No Deposit Home Loan without a Guarantor?
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.
What Happen to Interest Liability When I Request Freeze Payments?
The mortgage application process remains stringent. Several things can occur in 30 years. A lender’s goal is to minimise risk to a bare minimum. Then, when a homeowner requires a payment delay, it’s more likely to be a one-time request. A reason to request a freeze on my home loan can occur. In several cases, the lender will grant the request, but it’s important to know how it affects the mortgage thereafter. Lenders help clients stay caught up with their repayments. If freezing the repayments helps, the lender sets it up. The one thing that doesn’t freeze is the interest rate liability. Although you receive a reprise from the payments, interest rate charges continue to accrue. In this situation, homeowners should consider paying off the interest each billing cycle. Paying off the interest almost becomes optional while the mortgage repayments remain frozen. When you start making your repayments, however, the outstanding interest charges roll into the total outstanding mortgage amount, also known as capitalisation. This makes your total mortgage more expensive. For some individuals, it’s necessary to go through this despite the additional cost. It helps get them to the other side of their current financial situation. We’ll take a look at home loan interest rates to see if there are other options. Freeze on My Home Loan If you require a freeze on my home loan, go over the details with the lender. Mortgage House clients go over how it impacts their real interest liability. Although the repayment remains frozen for a time period, the interest rate continues to accrue. For more information, speak with our loan specialists.