No Deposit with Guarantor Defence Home Loans

No Deposit with a Guarantor Defence Home Loan is the only way to borrow 100% or more of the purchase price as the typical no deposit home loans were withdrawn from the market in 2009. There are many differences between the Guarantor No Deposit Defence Home Loans from bank to bank but they share the same fundamentals.

With the help of a guarantor which is more often than not, a family member, this loan type allows you to borrow the full purchase price of the property plus in some cases the purchasing costs (stamp duty, Conveyancing fees etc.).

Benefits
The biggest benefit to the No Deposit Defence Home Loan with a guarantor is you are able to enter the property market sooner when compared to saving the standard 5% deposit and enough to cover purchase costs. It could take over a year to save this yourself and just think how much dead money you would pay in rent over this time - $15,000, $20,000? Wouldn’t you rather this going into your own home than the landlords?

No Deposit Defence Home Loans with a guarantor are structured in a way where you are not required topay lenders mortgage insurance (LMI). LMI is a one off insurance premium protecting the bank if a borrower were to default and there was a loss to the bank upon sale of the home. These premiums can run into the thousands which provide you with another significant saving. An added benefit is that with some lenders you may be able to consolidate some small debts e.g. pay out credit cards or a personal/car loan.

“Remember you do not require any genuine savings or your own deposit”

It’s important to note that the No Deposit Defence Home Loan guarantee is not in place for the next 30 years. We work with you and your family member by working on an exit strategy so the guarantee is in place for the shortest time possible. The average we find is 3 to 5 years depending on the market conditions, incomes and type of home purchased. It does not matter if the family member already has a mortgage, as long as their mortgage and the guarantee (20% + purchase costs) do not exceed 80% of their property value.

Why use our expert advice?
Approvals – not every lender is favourable to these types of loan and in fact some lenders shy away from these loans even though they say they offer them. We know which lenders to use based on your guarantee option as we specialise in construction home loans.

Unlimited Guarantee – some lenders do not limit the guarantee for your parents to 20% of your purchase price + costs and in fact make the guarantee is the entire loan amount. This equates to much more risk for your family than there needs to be. We know which lenders allow us to limit your parents guarantee.

Investment or Owner Occupied – there are only some lenders that allow this type of loan to be used for investment as most require the purpose to be owner occupied. Don’t ruin your credit file from having unnecessary credit enquiries from lenders.

Paying out Debts– You could use your HPAS and FHOG to pay out debts or consolidate some debts into the home loan. Most will not allow debt consolidation but we know which lenders will allow some small debts to be consolidated at the same time of purchase. How good would it be to have just one repayment each month?!

Protection for the Guarantor – Did you know for every home lost due to fire, another 41 homes are lost to loss of income. If you can’t pay your home loan this puts the guarantor at risk of losing their home. Insuring yourself against loss of income reduces this risk to your guarantor losing their home and more importantly you losing your home! We show you how affordable it is.