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Available Options for No Deposit Loans for First Home Buyers

No Deposit Loans for First Home Buyers

It is the dream of first home buyers to get into their dream house soon with a low or no deposit. Various options are available for no deposit loans for first home buyers. As a first home buyer, you may get confused and worried about savings for house deposits, but various schemes are available that will help you save thousands of dollars on your first home purchase. You can get approved for a home with low to no deposit. In today’s blog, we’ll discuss possible options through which you can buy your first home with little to no or low deposit 

 

No Deposit Home Loans for First Time Home Buyers 

No deposit home loan refers to a loan where the first home buyer gets approved for 100% of the property’s worth, which means first-time home buyers don’t need to pay a deposit. A guarantor home loan is the most common type of zero-deposit home loan in Australia.  

 

What Option to Choose for the First Home Buyers Loan with No Deposit or Low Deposit? 

Usually, a 20% deposit is required to buy a home, but many eligible buyers have options to buy brand-new homes with zero to no deposit.  

 

  • Option 1: 105% Guarantor Loan  

A guarantor loan is the best zero-deposit home loan available in Australia. With this home loan, guarantors will offer their property as security over your home loan. As a borrower: 

  • You can borrow 105% of the purchase cost. 
  • No need for savings. 
  • Your guarantor must give a guarantee, secured on their property. 

 

  • Option 2: First Home Owners Grant 

The first home owner grant may differ from state to state, so make sure to find the eligibility criteria for your state. For instance, if you are in Victoria, if the home is worth $750,000 or less, you can receive up to $10,000, whereas if you are in a regional area in Victoria, you can receive up to $20,000. With this grant, you can purchase a residential property. You need to move into your new home within a year and live there for 6-12 months. You can use this grant as a deposit.  

 

  • Options 3: Using Superannuation  

You can take advantage of the First Home Super Saver program for a down payment on your first home. This scheme helps first-home buyers by allowing them to contribute some money to a super account. These contributions can be used as your deposits.  

 

  • Option 4: First Home Loan Deposit Scheme 

The first home loan deposit scheme helps first home buyers buy a property with a deposit of as little as 5% without paying LMI. Although this scheme doesn’t support zero deposit still, it is lower than a 20% deposit. This scheme is open to eligible Australian citizens.  

 

  • Option 5: Family Home Guarantee Scheme 

Eligible single parents with at least one dependent child can buy or construct a new home with as little as a 2% deposit without paying LMI. 5,000 places are available every year until 30 June 2025.  

 

Choosing a Broker for No Deposit Home Loans for First-Time Buyers 

If you have no savings, little savings, or you have less than 20% savings of the purchase cost of the property you want to purchase, you can opt for no deposit home loan. Various zero-deposit loans for first home buyersare available from a range of lenders, each with its own features, eligibility criteria, and benefits. However, you can contact a reliable broker rather than meet a lender directly. 

 

If you are eligible for a no-deposit scheme, you can secure a property you want to buy. You need to compare different options to choose the right one that best suits your requirements. You can talk to Star Homeloans to compare zero-deposit home loans from various lenders and get the right option.  

 

Conclusion  

You can buy your dream home with a low or zero deposit, but you need to be eligible for a particular scheme. You can speak to one of our experts from Home Star Home Loans to know what government scheme or grant you can access to save thousands of dollars on your first home purchase.

Also Read:

Can I Use My Super To Buy A House?

 

 

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