Unlocking Low Deposit Home Loans with ScaleMortgage

Low deposit Home Loans: Buying a home is a dream for many, but saving for a big deposit can seem impossible. However, with the right knowledge and support, home ownership can be within reach.

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A pathway leading to a welcoming house with a small down payment sign, illustrating the accessible journey to homeownership with ScaleMortgage's low deposit home loans.
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In this article, we’ll explore low deposit home loans and how ScaleMortgage can help you navigate the process.

What are Low Deposit Home Loans?

A low deposit home loan is a mortgage that needs a smaller deposit than the usual 20% of the property’s value. This helps first-time buyers or those with little savings purchase a home with less money upfront. This option is beneficial for those who may not have a lot of savings and makes it easier for people to become homeowners.

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Deposit Assistance Programs

Various deposit assistance programs are available to help individuals and families achieve their dream of home ownership. These programs can provide financial assistance, such as grants or loans, to help cover the cost of a deposit.

The First Home Owner Grant (FHOG)

The First Home Owner Grant (FHOG) is a program that gives money to first-time home buyers from the government. The amount of the grant varies depending on the state or territory in which you are purchasing a home.

The Family Home Guarantee

The Australian Government has a program called the Family Home Guarantee. Assisting single parents in purchasing a home with a down payment of just 2%. This program is for single parents with at least one child. Accessible to both first-time homebuyers and those who have previously owned a home.

Home Loans With Low Deposit

Various low deposit home loan options are also available from lenders. These loans typically require a 5-10% down payment on the property’s value, making it easier for buyers to enter the market.
Some lenders may offer a guarantor loan, where a family member can use their property as security for the loan. This can help buyers avoid paying Lenders Mortgage Insurance (LMI), which is typically required for loans with a deposit of less than 20%.

Why Choose ScaleMortgage for Low Deposit Home Loans?

Finding a low deposit home loan can be confusing, but ScaleMortgage has experts to help you through the process.

Best In Class Service

At ScaleMortgage, we understand that every individual’s financial situation is unique. That’s why we offer personalised service to ensure that you receive the best possible loan option for your specific needs.
Our team of mortgage brokers will help you find the right low deposit home loan that fits your financial goals

Extensive Lender Network

We work with many lenders, more than 30 major banks and alternative lenders, to find the right loan options for our clients. This means that we can help you find a low deposit home loan with competitive interest rates and favourable terms.

Expert Advice and Support

Purchasing a home is a significant financial decision, and we understand that it can be overwhelming. Our team is dedicated to providing expert advice and support throughout the entire process.
We will help you understand the different low deposit home loan options. We will also assist you with the application process. Our goal is to make it easy and stress-free for you.

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How to Qualify for a Low Deposit Home Loan

To qualify for a low deposit home loan, you will need to meet certain criteria set by the lender. These criteria may include:

  • A good credit score
  • Stable employment and income
  • A history of saving
  • A clear understanding of your financial situation and ability to make repayments

At ScaleMortgage, we can assist you in determining if you qualify for a low deposit home loan. We can also help improve your chances of approval.

Tips for Navigating Low Deposit Home Loans

Start Saving Early

Low deposit home loans make buying a home easier. However, it is important to save as much money as possible for a deposit. The more you can save, the less you will need to borrow, which can save you money in the long run.

Utilising Lenders Outside of the Big Banks

Major banks are not the only option for home loans. Non-bank lenders also offer low deposit home loan options that compete with the major banks. These lenders may have more flexible eligibility criteria, making it easier for you to qualify for a loan

Seek Professional Advice

Finding the right low deposit home loan can be confusing. A mortgage broker can help you make smart choices. They can also help you find the best loan for you.

Where Are Low Deposit Mortgage Lenders Found?

Looking for a mortgage that doesn’t need a big down payment? There are many mortgage lenders available to help. However, finding the best one can be difficult.
It may feel like searching for a needle in a haystack. You might think you need to talk to over 30 different lenders to find what you’re looking for.
This is where teaming up with a mortgage pro like Scale Mortgage makes a huge difference. Leverage our technology to find your best deals quickly, saving you time and effort.

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Can I get a home loan with a $5,000 deposit?

Yes, obtaining a home loan with a $5,000 deposit is possible, though options may be limited. Lenders often require mortgage insurance for deposits under 20%, but government schemes and certain products are designed to help low-deposit buyers. It’s crucial to check eligibility for these programs and understand the potential for higher interest rates or fees.

Can I buy a house with a $10,000 deposit?

You can purchase a house with a $10,000 deposit. This can be achieved through financial products and assistance from government programs. These programs are specifically designed for first-time buyers or individuals with low deposits. Qualifying may involve certain conditions, such as purchasing in specific areas or meeting income requirements.

Is 5% enough for a house deposit?

Most lenders ask for a 5% deposit inclusive of stamp duty when purchasing a house. They may also offer mortgage insurance or first-home buyer programs to lower their risk. This option makes home ownership more accessible but may result in higher monthly payments and insurance costs.

Can I get a mortgage with a low deposit?

You can get a mortgage with a small deposit. There are programs and products available to help buyers enter the housing market more quickly.
There are several options available to help with getting a loan. These include government programs, having a guarantor, or special deals from lenders. However, it is important to note that there may be extra costs associated with these options.

How much deposit do I need to buy a $500,000 house?

For a $500,000 house, a 20% deposit + associated fee’s of $100,000+ is typically recommended to avoid LMI. With low-deposit loans, you can buy a home for less money. But remember to think about the overall costs and if you qualify for any financial help programs.

Can I buy a house with an $80,000 deposit?

A deposit of $80,000 gives you more choices for a mortgage. You can get a better interest rate and avoid LMI if your deposit is at least 20% of the home’s value. It also demonstrates financial responsibility to lenders, potentially easing the approval process.

How do I not pay LMI?

Avoiding LMI is possible by saving a deposit of 20% or more of the property’s value, receiving a financial gift, or using a guarantor to secure your loan. Additionally, some professions (like medical or legal) may qualify for LMI waivers due to perceived lower risk.

Take the First Step Towards Home Ownership with ScaleMortgage

If you’re ready to take the first step towards home ownership, contact ScaleMortgage today. Our experts will help you understand your financial goals and find the right low deposit home loan option for you. With our personalised service and extensive lender network, we can help you unlock the door to your dream home.

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Thomas Makin

Thomas Makin is the Principal Mortgage Broker and Co-Founder of Scale Mortgage. He has a Diploma in Finance and Mortgage Broking Management and is accredited by the Mortgage & Finance Association of Australia (MFAA).

Thomas is known for his skill in providing tailored mortgage solutions. He helps homebuyers and investors across Australia, showing a strong commitment to professionalism and high industry standards.

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