Can I Buy a House with No Savings?
Unfortunately, most Australian banks and lenders no longer offer no-deposit home loans. However, that does not indicate being unable to successfully purchase a home with no savings. There are a few different options available to potential borrowers with no savings. A guarantor home loan can allow a borrower to buy a house with no savings due to having a guarantor put up equity from their own properties as security, allowing a borrower to obtain a loan with no deposit.
First-time homeowners should explore the First Home Loan Deposit Scheme for a chance to purchase a home with a deposit of 5% without paying for Lenders Mortgage Insurance. The First Home Owner Grant Scheme can provide first-time buyers with a $10,000 non-taxed grant to use for home buying or building expenses without needing to repay.
Additional options for buying a house with no savings are available for potential borrowers to explore:
- Low deposit loans allow borrowers to pay only a 5% deposit but require additional payment for Lender’s Mortgage Insurance
- Family Guarantees allow a member of the borrower’s family to place a specific amount of equity as security, generally 20% of the home purchase price, to allow the buyer to borrow more funds and potentially avoid paying for Lender’s Mortgage Insurance
Mortgage House lending specialists are prepared to assist potential buyers with determining the best loan available, recommendations for assistance with deposits, and tailored financial advice to help borrowers with loan repayment plans.