Rent or Buy a Home

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.

An added factor to consider is that if property prices rise further there could be an additional capital gain which would not have been available to those who chose to remain renting.

Advantages of no deposit home loans maybe;

• Purchase now without waiting to save a deposit

Disadvantages of no deposit home loans could be;

• Stricter lenders policy could make loan approval more difficult than usual
• May not be available in all areas or locations
• Mortgage insurance can be higher as a result of additional perceived risk
• Residential and employment history needs to be stable
• Credit history must be very good

Contact Ability Finance brokers who have helped many of their customers find competitive no deposit home loans on telephone 02 8002 4035.