There are a few lenders who will allow you to take a personal loan in place of deposit and buy the property. That’s because most of the lenders would want you to have at 5% of the property price as genuine savings, i.e. your own savings.
Moreover, those lenders would want you to have:
- A high income to afford both repayments.
- Little existing debt (car loans, high credit card balances, etc.).
- A clear credit history.
- Some savings to make up any shortfall.
- A proven rental history (preferred).
For this, we will first complete a basic assessment of your situation and recommend if there is another option available such as a guarantor loan or 95% home loan.
This parental loan arrangement will allow you to borrow up to 105% of the property value. A guarantor must either be your parents or a close relative and it works with the guarantor using the equity in their home as security for your home loan.
In this way, you can borrow with no deposit, avoid the cost of Lenders Mortgage Insurance (LMI).
If we determine that you are suitable for this type of finance and can afford the repayments, then we’ll organise a personal loan to fund your deposit.
Please enquire online or call us on 1300 889 743 and check if you qualify or not.
Cheers,