01 Jul 2022

How can I get a no deposit home loan if I don’t have a guarantor?

Interest-Only Home Loan

A guarantor is a person that can guarantee the full repayment of a loan. It is rare for homebuyers to use guarantors because of how expensive and large this investment is. However, when someone uses a guarantor, this person must give up some kind of equity, like a home or car, to the bank and lender as proof that the home loan will be repaid.

One no deposit home loan solution is to stretch the repayments by splitting the repayments amongst co-borrowers and the primary owner and guarantor. It is not possible for everyone though and requires a long conversation between both parties, as dividing repayments can be tricky.

Specific stretch packages are available at top up facilities and lenders that have strong programs. Mortgage House home lending specialists can assist you in finding a stretch package and other solutions to no deposit home loans. The problem with no deposit home loans though is that the interest rate of a home is high! 

Thankfully though, as a borrower increases their credit score, they can refinance the home loan for a better monthly or fortnightly repayment amount. 

No Deposit Home Loan with No Guarantor Conclusion

When available, using a stretch package with a top up facility is a strong choice for borrowers that do not have savings for a large deposit. It is hard to save enough money for a deposit, especially when some lenders require 20%.

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