Can you get a house loan without savings?
Technically, you do not need a savings or a deposit to buy a home or get a house loan. Although this is true, it is not recommended. A person should always have at least some money in their savings both in case of emergency as well as for home repairs and upgrades.
There is a lot that can go wrong in thirty years. When someone does not have savings and wants to purchase something as large as a house, this can cause problems. One small hiccup can lead to late repayments, which hurt a borrower’s credit score and shows other lenders they are not trustworthy with large purchases.
It is unlikely that a lender will approve someone without savings or a deposit ready. However, there are no deposit loans as an option to homebuyers that do not have enough savings for a large deposit. These loans are high though and not easy to obtain. Most lenders and banks do not offer them because they are high risks for both the lender as well as the borrower.
If you have family members or friends that give you a gift or let you borrow money for a deposit, this can also help you get a house loan. However, having extra savings does not hurt.
Home Loan No Savings Conclusion
Obtaining a house loan without savings is not impossible, however, it is also not easy to do. There are many qualifications that a borrower needs to have to be eligible for loans, and usually a deposit is one of these. Mortgage House does offer various types of loans, including low-deposit loans for first time homebuyers in the Australian housing market.