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17 Aug 2022

Can I get a mortgage with a low deposit?

Low Mortgage Rates

While the standard deposit for a home loan is 10-20% of the total borrowed amount, this does not mean you cannot apply and qualify for a mortgage with a low deposit. A low deposit is any deposit under the average and accepted 20% deposit. Trying to save a 20% deposit on rising houses is difficult, especially since it takes years to save large amounts.

For example, if you want to borrow $400,000 to purchase a home, this means that the mortgage lenders expect at least $80,000 for a deposit. There are lenders that will accept less, as less than 3% if the borrower is eligible. Having a good credit score, clean rental history, and a high income can make your case sound more convincing.

The problem with low deposits is that with most lenders, you have to pay a one-time hefty low deposit fee. This fee goes towards your deposit and is non-refundable. Another problem that can be difficult for some borrowers is that the lower your deposit, the higher your repayments each month. If you make enough money on a long-term basis, it is easier.

Mortgage Low Deposit Conclusion

Mortgage House can assist you in finding a great solution for your mortgage needs regardless of how large or small your deposit is! Sometimes, though, it is best to wait until you save enough money to lower mortgage repayments.

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