Low Deposit Home Loans in Perth, WA
Are you looking to buy a home in Perth, Western Australia, but you don’t have a 20% deposit?
If so, you may be wondering if there are any low deposit home loans available. The good news is that there are a number of lenders in Perth who offer low deposit home loans. These loans can be a great option for first home buyers or those who are looking to upgrade their home but don’t have a large deposit.
We will discuss the different types of low deposit home loans available in Perth, and we will answer some common questions about these loans. We will also provide some tips for finding the right low deposit home loan for you.
What are the different types of low deposit home loans?
There are a number of different types of low deposit home loans available in Perth. Some of the most common types of low deposit home loans include:
- Government-backed loans: The Australian government offers a number of low deposit home loan schemes, such as the First Home Owner Grant (FHOG) and the First Home Loan Deposit Scheme (FHLDS). These schemes can help you to save money on your home purchase.
- Lender-funded loans: There are a number of lenders in Perth who offer their own low deposit home loans. These loans may have higher interest rates than government-backed loans, but they can be a good option if you don’t qualify for a government-backed loan.
- Shared equity loans: Shared equity loans are a type of loan where the lender shares the risk of the loan with you. This can help you to get a loan with a lower deposit.
What are the pros and cons of low deposit home loans?
There are both pros and cons to low deposit home loans. Some of the pros include:
- You can buy a home sooner: If you don’t have a 20% deposit, you may have to wait longer to buy a home. However, with a low deposit home loan, you can buy a home sooner.
- With some of the government backed scheme you will NOT need to pay mortgage insurance.
Some of the cons of low deposit home loans include:
- Higher interest rates: Low deposit home loans typically have higher interest rates than loans with a 20% deposit. This means that you will pay more interest over the life of the loan.
- Less borrowing power: With a low deposit home loan, you will have less borrowing power. This means that you may not be able to afford a home as expensive as you would if you had a 20% deposit.
How do I find the right low deposit home loan for me?
If you are considering a low deposit home loan, there are a few things you need to do to find the right loan for you.
- Compare interest rates: The interest rate is one of the the most important factors to consider when choosing a low deposit home loan. Make sure to compare interest rates from different lenders to find the lowest rate possible.
- Consider fees: There may be fees associated with taking out a low deposit home loan. These fees can vary depending on the lender. Make sure to factor these fees into your decision when choosing a loan.
- Choose a loan that fits your budget and citation: Make sure to choose a low deposit home loan that you can afford to repay and meets your requirements.
- Make sure you understand the terms of the loan: Before you sign any paperwork, make sure you understand the terms of the loan, including the interest rate, fees, and repayment period.
Contact Central Lending Solutions for help with low deposit home loans
If you are considering a low deposit home loan, Central Lending Solutions can help. We are a mortgage broker with over 20 years of experience in the Perth market. We can help you compare interest rates from different lenders and find a low deposit home loan that is right for you.
Contact us today to learn more about how we can help you with your low deposit home loan.