Are you looking to get started on the property ladder but struggling to save for a home loan deposit?
This week I will provide you with some top tips on how to achieve that deposit and get onto the property ladder.
3 Tips For A Saving For A Home Loan Deposit
1. Family Guarantee
This is when a sibling or parent with more than 20% equity in their own property uses that equity as a deposit for your first property.
This is a legal document that banks are well aware of and is a great, safe way to get the deposit you need.
2. Loan from Your Employer
Another way is to ask your employer for a loan for the deposit.
While it’s not always an option, it can be a win-win situation for both you and the employer.
Everyone is struggling to keep employees at the moment, so it is a great way to firm up the relationship and let your employer know that you are serious about your job and will be there for the long term.
Not only will you get onto the property ladder sooner, but it also shows your employer that you’re committed to your job and will be there for the longer term.
3. First Home Loan Deposit Scheme
Finally, the government has introduced a First Home Loan Deposit Scheme which helps first time owners with a small deposit.
This is a scheme that helps first homeowners that have a very small deposit.
If you don’t have a 20% deposit, you can start with less, but the banks or the lenders will charge you lenders mortgage insurance.
This is an insurance policy because they’re taking a bigger risk for lending you a bigger percentage of the property value.
If you have a 5% deposit, you may qualify for the First Home Loan Deposit Scheme.
The government will guarantee the loan so you won’t have to worry about paying lenders mortgage insurance which can be several thousand dollars.
I hope this information has given some guidance on how to save for a home loan deposit.
Even if you’re not quite there. Don’t give up. Don’t blow the money, make a budget and stick to it. Keep chipping away at it and remember to speak to your finance specialist to give you some guidance on the best plan to help you on the road to home ownership.
If you would like to speak to one of my recommended mortgage brokers feel free to reach out to me and I can pass their details on.
If you would like to discuss your property needs further click here to book a strategy call in my calendar.
Regards,
Geoff Tomkins
Buyers Advocate
PH: 0404 852 781
