Buying Home Without Deposit
The amount of money you need for a deposit depends on the lender and their lending criteria. Some lenders let you borrow up to 90% or 95% of your home's value, so you may only need to save a 5% deposit to have your loan approved. This would mean if you wanted to buy a property worth $500,000, you may only need to provide a deposit of $25,000.
Saving for a deposit for your first home means spending less than you earn - which can either be tricky or impossible. But there are ways to buy a home without a deposit at all. We've outlined four options below that might provide just the leg-up you need - just be sure you understand the risks involved.
Following the global financial crisis (GFC), these loans are the only way to buy a home with no deposit. In most cases a no deposit guarantor home loan is the same as a regular home loan. This means that you can compare most types of loans, including those with fixed or variable rates.
A no down payment mortgage allows first-time home buyers and repeat home buyers to purchase property with no money required at closing except standard closing costs. Other options, including the
In a market where homes aren't selling quickly, the listing agent may note that the seller requires only 1% or less for the earnest money deposit. In markets where demand is high, the seller may
100% LTV mortgages: You can buy a house with NO deposit AT ALL - here's how. Aldermore, Kent Reliance and the Vernon and Bath building societies are all offering 100% LTV mortgages.