No Deposit Home Loan

My Home Package has been designed to help borrowers save money and pay off their loans sooner.

For customers that want to reduce the cost of borrowing and managing their money.

The more home loans or other eligible products the greater the savings.

• No upfront establishment fees or ongoing account keeping fees on home loans for as long as they remain in the Package
• Unlimited number of eligible home loans can be included within the Package
• Optional 100% Offset Facility
• Discounts on a range of products across banking, lending and insurance.

2 weeks only

FIRST HOME BUYERS OFFER

First Home buyers eligible for the NSW/ACT Government First Home Owner Grant can apply for a First Option Home Loan with NIL Establishment Fee ($600 saving), NO Monthly Maintenance Fee ($10 per month saving) and an extra 0.12 percent discount on the First Option Home Loan rate.

The First Option Home Loan allows the customer to make additional repayments at any time and also access their redraw facility.

No deposit home loan or continuing to rent

While the rising cost of purchasing a home at first seems to be a negative for first home buyers who are considering purchasing their first home, a positive is that currently available no deposit, and low deposit home loans, now offer competitive interest rates and flexibility.

Currently in Australia the break even point between making a home loan repayment and the cost of renting is often very close.

No deposit home loan seekers may be noticing a new offer of a 110% home loan advertised recently.

What marketing people have actually done is labelled a no deposit home loan concept that has been available for quiet some time as a 110% no deposit home loan!

This type of home loan where borrowers who do not have any deposit is a very good idea but it may not be suitable for everyone.

The basic concept is that there must be a guarantor involved.

Ability Finance brokers have lenders still able and willing to lend up to 100 percent of a property purchase price or valuation, whichever is lower.

This no deposit option is available for home loan applicants who have no genuine savings and property investors may also consider 100 percent home loan lending to maximise leverage.

The factors that will determine which offer may suit you best are set up costs, mortgage insurance cost, ongoing fees and charges, interest rate, discharge fee and early repayment costs or deferred establishment costs.

Equity Finance Mortgage (EFM)®

Now there is a new home loan available that can help you reduce your monthly home loan repayments or even purchase a more expensive property than you may otherwise be able to afford. An EFM® works in conjunction with a traditional home loan. Together they let you move some of the expense of a traditional home loan to later when you
eventually sell your property.

You can use an EFM if you are purchasing your first home, buying a new home or refinancing your existing loan.

Property Share Option

Property Share is a home loan option which allows friends to buy a property together but keep their finances separate.

Property Share Option Key features;

• Property Share allows borrowers to purchase one property using separate loan facilities.
• Note: A maximum of two loan facilities per security is allowed (see example);
• Each loan facility can be for different amounts, with different loan types, duration and payment structures;
• All applicants must be owners of the property – i.e. no third party guarantors;

Property Share example

Choosing a cheap no deposit home loan that won’t cost you more than other no deposit home loans is a simple as picking the one with the lowest interest rate right?

Well maybe.. but there are many other factors and costs that can come into play and contribute to additional costs.

• Application fee is not a huge expense but can make a difference.
• Ongoing fees and account keeping charges can add up over time and contribute additional cost to your home loan.

Sadly there has been an announcement from First Permanent, the lender behind the 106 percent establishmentloan and investorloan no deposit home loans, that all products have been withdrawn from offer effective immediately.

First Permanent was well known as the lender behind these no deposit home loans;

• establishment home loan
• investor home loan
• graduate home loan

.

More information is at Finance Broker Australia website.