At times, it may feel challenging to buy your first home particularly with the need to provide a substantial down payment. You may think you need to have a big deposit of about 10%, but this amount can actually change depending on your individual conditions.
As there are plenty of aspects involved, it can get a little challenging to figure out how much of a deposit you actually need to have. For example, one person may only require a 5% deposit as they have an excellent credit rating and have been in their current job for many years. You may still have to pay for home mortgage insurance in this particular scenario. A different individual may have to provide a 20% deposit as they’re self-employed and have a couple of defaults on their credit report.
Nonetheless, there are some occasions in which you won’t need to have an up front deposit and you could be eligible for a home loan without one. These “no deposit” house loans might be just what a new homeowner needs to get on their feet and purchase a home. There are also “low deposit” home loans where you will have a smaller deposit requirement to help you buy your home. These types of low deposit loans are suitable if you have some savings set for your investment but not quite the 20% to prevent the mortgage insurance costs.
According to your circumstances, you may be a candidate for a no deposit, or low deposit, house loan. As mentioned, it really depends on your circumstances, your occupation and any previous issues with credit history that you may have experienced. To better recognize these loan types and to see if you would certainly be entitled, give Go Mortgage a call today on 1300 855 244 or visit https://www.gomc.com.au