When you and your partner first think about purchasing a home, it’s likely you’re first fear is the deposit. In reality, it’s just the fear of the unknown. Hopefully, by the end of this short article, you’ll have peace of mind when it comes to dealing with the deposit for home loans in Australia.
It’s very usual for lenders to require a 20 percent down payment. This can fluctuate depending on the terms of the loan that you set up. However, for most borrowers, the lender is going to require you to pay 20 percent of the value of the home you plan on purchasing. For example, if you’re looking to get a loan for 100,000 dollars, you’re going to need to provide the lender with a cash down payment of 20,000 dollars. While this number may seem large, it’s a starting point. At least you now know what the down payment price is that you’re going to have to come up using a Home Loans Calculator at Loans.com.au in Australia.
For those of you who are unable to save 20 percent for a down payment on home loans in Australia, there are some non-conventional creative financing tactics you can use. You should realize that when you submit a lower down payment, you’re going to have to make up for it in another area of your homes loan in Australia. This could be in the form of a higher interest rate or putting up more collateral for the loan. Either way, you need to give the lender something of value to offset lending you the money with a smaller down payment amount.
Finding the money for a down payment may seem a bit difficult at first. However, when you truly start to rack your mind about ways to get there you will discover some tactics you can use. A few ideas to get you started are tax refunds, monetary gifts, selling assets, or inheritance. If Home Loans at Loans.com.au in Australia are an important endeavor for you, then we suggest taking some actual time out of your day and brainstorming up a list of various ways you can come up with the money for a down payment.
In this last part, we’re going to address the burning question that many have when it comes to home loans in Australia. Is it possible to obtain home loans in Australia with no down payment? This is possible in the event that you have another property to use as collateral or you have a guarantor. A guarantor is a person that will use their own property as collateral for your home loan. This is typically done by family members, mainly parents, for their children. Just remember that in the event you default on your home loan, the property used as collateral can be rightfully seized and sold by the lender to recover their funding.