Do banks give 100 percent home loans?
The topic on lending 100 percent of the cost of a home is trending, however, it is not recommended. Most banks do not offer 100 percent home loans because of how tricky they are. These types of home loans are tricky because they are risky. The risk comes from having no guarantee that the borrower has anything to lose.
In other words, banks can give 100 percent home loans to borrowers, but it is rare and not recommended by mortgage experts. Those banks that do allow these types of high loans also require equity or proof of property. For first time homebuyers, this is not possible, and a guarantor is needed.
A guarantor is a trusted person, usually a family member that is established and has savings, that can sign away a piece of their equity as a guarantee that the home loan will be repaid. Another person that can help get you a 100 percent home loan is a co-borrower. This co-borrower uses their money, name, and credit score on the application. However, the property is owned by both you and the other co-borrower.
Instead of relying on a bank to offer 100 percent home loans, borrowers should focus on home loans with low deposit or personal loans to pay for the deposit.
Banks and 100 Percent Home Loans Conclusion
Mortgage House experts offer potential borrowers many different home loan solutions for those with no deposits and large deposits. Speaking with a representative and expert can get the process rolling quickly.