No Deposit Home Loan

Commonwealth Bank No Deposit Home Loans not available from Monday 1 December 2008

The Commonwealth Bank is withdrawing its $0 Deposit home loan from the market. Applications with supporting documentation will be accepted up to 11.59pm Sunday 30 November 2008. No new applications will be accepted after this date.

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.

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.

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.

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.