BTB Money

1300 633 616

Level 5, 211 Maroondah Hwy, Ringwood, Victoria 3134. Australian Credit License 387381

©2016 by BTB Money

 

 

No deposit loans for first home buyers are available

 

What are the loan process steps?

Loan or mortgage applications do not need to be difficult.

  • Step 1 - Complete an online fact find. This provides the lender with important detail about you and your particular circumstances. You will receive a link via email and a security code via SMS. This will allow you to complete the fact find.

  • Step 2 - Lodge application with the lender. This requires supporting documents like your payslips, PAYG Summaries, Identification and other documents as required by the lender.

  • Step 3 - Answer any questions raised by the lender.

  • Step 4 - Conditional and Formal Approval. A valuation will be conducted by the lender and other conditions may need to be met in order for the lender to provide formal approval.

  • Step 5 - Loan or mortgage documents are issued by the lender for you to sign.

  • Step 6 - Settlement date can now be set.  

Can you help me find my new home?

  • House and land packages, apartments and townhouses are available from our premium property partner.

  • We get access to properties that are not on the retail market.

  • By allowing us to source your new home and the finance together, you get better finance options and better new home choices.

  • We will ensure you have your finance in order before formal commitments in a property contract.

  • As this service is complimentary, why would you not use it ?

Is there a true 100% First Home Buyer Home Loan?

  • Borrow up to 100% of the property value with a 100% First Home Buyer Loan.

  • Your parents do not need to provide a deposit or equity.

  • Avoid the high cost of Lenders Mortgage Insurance (LMI).

  • Lenders criteria applies of course.

How can my parents help me if needed?

  • Borrow up to 105% of the property value with a guarantor loan.

  • Your parents can use the equity in their home to secure your mortgage so you can buy a home with no deposit.

  • Avoid the high cost of Lenders Mortgage Insurance (LMI).

  • Cover the extra costs of purchasing a property including stamp duty, mortgage set up costs and conveyancing and legal fees.

  • Qualify for a low interest rate.

 

Did you know that around 60% of first home buyers receive some sort of help from their parents?

If they’re not in a position to provide a guarantee, your mum and dad can gift you the money for the deposit instead.

Will I pay a higher interest rate by using a guarantor?

 

Actually, you’ll probably get a rate discount!

This is because the additional security offered by your parents actually lowers your risk moreso than someone borrowing 95% of the property value.

If your income, job and credit history are all stable then you’re a highly sought-after borrower.

Banks are increasingly recognising the value of first home buyers.

You may qualify for discounted interest rates. and waivers on loan approval, application and valuation fees.


Why are no deposit home loans such a popular choice?

 

A no deposit loan will allow you to borrow up to 100% of the purchase price.

The main type of no deposit loan is known as a guarantor loan with gifted deposit home loans coming a close second.

They are still available with all the normal loan benefits such as 100% offset, fixed interest rates and interest only periods.

Many people are eligible for discounted professional package interest rates, basic loan packages and application fee waivers as well!

 

Can you use the First Home Owners Grant as a deposit?

Yes you can however, it isn’t normally enough on its own.​

  • If you’re building a home then your grant isn’t available until construction commences.

  • In total, you’ll typically need 5% to 10% of the purchase price, including the FHOG.

  • If you have a guarantor then you don’t need any savings whatsoever.

 

How much is the First Home Owners Grant?

 

The First Home Owners Grant (FHOG) is a national scheme funded by the states and territories of Australia and administered under their own legislation.

A one-off grant of between $5,000 all the way up to $20,000 is available depending on your state and the property price.

Note that some states have additional or separate grants.

You can apply for the FHOG through your bank when you apply for your loan. The funds will be advanced with your loan at settlement. If you’re building a home then you receive the grant when you apply for your first construction drawdown.

Note - lenders criteria applies to all loans.