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How to buy a property when there is not enough deposit?

Case Study: James and Cindy had a good and steady income but they didn’t have enough deposit to be able to buy a property. They went to talk to the lenders and they have been knocked back by the lenders. Lenders told them that without deposit, they can't lend James and Cindy any loan. So, they went to see the mortgage broker for help, finally, they found out that they just haven’t been given the best advice by the lenders.

Solutions: Their mortgage broker suggested them the other option to buy property without savings is to use the family equity in place of a deposit. This meant including the value of the parent’s home in the total property valuation for the loan to bring their loan to valuation ration to required 80%.

By follows what the mortgage broker told them to do, James and Cindy's application was approved and they no need to delay any longer to purchase their first home and with the help of family equity, they also avoided paying lender’s mortgage insurance.

Three years later, when they refinance their home loan and they also can eliminating their parent property from their home loan arrangement and maintaining the loan on their own.

Over the years, with the equity they built up in their current home loan, they are now working with their finance broker on a plan to purchase their first investment property. Which they never thought it was possible three years ago then they have been told by the lenders they couldn't even buy their first home.

Come speak to Kevin today on 0415820016 to discuss your options when it comes to deposits.

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