Can you buy a house without a deposit?
Sometimes, it can feel impossible to buy your first home especially with the need to have a large deposit. You may think you need a large deposit of around 10%, but this percentage can actually change depending on your personal circumstances.
As there are plenty of factors involved, it can get a little complicated to know how much of a deposit you actually need. For example, one person may only need a 5% deposit as they have an excellent credit rating and have been in their current employment for many years. You may still need to pay mortgage insurance in this situation. Another person may need to provide a 20% deposit as they’re self-employed and have a couple of defaults on their credit report.
However, there are some instances where you won’t need an up-front deposit and you may be eligible for a home loan without one. These “no deposit” home loans can be just what a new homeowner needs to get on their feet and purchase a home. There are also “low deposit” home loans where you will have a smaller deposit requirement to help you buy your home. These low deposit loans are ideal if you have some savings ready for your purchase but not quite the 20% to avoid the mortgage insurance costs.
Depending on your circumstances, you may be eligible for a no deposit, or low deposit, home loan. As mentioned, it really depends on your circumstances, your employment and any past issues with credit that you may have experienced. To better understand these loan types and to see if you would be eligible, give GoMortgage a call today on 1300 855 244.