I am just a new to this forum but from what i have just read it seems to be a very helpful forum.. I am a first home buyer living in Adelaide and looking for a land and housing package for under $300 000 but i dont have a deposit at all .. I am currently renting a property for $840 a fortnight…. Given that background am i able to get access any finance without a deposit…Secondly which areas can i choose from given that price.. Someone told me i can use a broker given my situation is that true and if so which ones can i use in Adelaide…
Your comments will be greatly appreciated in whatever form
Hi Rosebud
Welcome aboard.
In order to get finance you need to put up a deposit or equity in another property.
You also need to be able to show the lender that you can repay the liability based on your income/expenses.
Given that you don't have a cash deposit and as a first home owner you wouldn't have equity – another option is to use a guarantor who will put up some of the equity in their property so you can purchase yours.
This comes with it's own risks and is something that would need to be carefully considered before proceeding with.
You can use a broker anywhere in the country.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Thanks Jamie for your input…does any one know areas in Adelaide within that price range which i can use as an IP in the long run…
Ta
Hi Rosebud,
As Jamie mentioned, without a deposit of your own, the only way would be a guarantor loan.
Another option depending on whether your renting situation classifies as genuine savings, is if you can get you hands on a cash deposit via a gift, sale of assets, etc, some lenders might be willing to take you on.
You also would have some stamp duty, conveyancing, etc to pay, but that would be more than offset via any grants you would receive as a first home buyer buying a new home in SA.
Cheers
Tom
Hi Rosebud. Another suggestion would be to see if you can get the developer to carry back the deposit as a second mortgage. I do this with developers which allows me to package a house and land deal to a buyer who then gets to buy a home with very low deposit. As with any property transaction, It all depends on the developer's circumstances. Sometimes you may need to offer slightly higher interest than the going rate but if it means getting a home or not I would consider that a small compromise. You also can avoid LMI by doing it this way i.e borrow 70% or 80% from the bank and get the developer to finance the rest.
thanks Jamie for your advise…
Rosebud
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