Problems with interest rates and repayments? Ask for home loan help.
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A home loan deposit is the amount of equity required by a lender in the home purchase. By having equity a lender can be more certain of recovering all of the loan funds in the event of having to sell the security (property) to repay the loan. Most lenders have an equity or deposit requirement of about 20% above which they will seek to insure their increased risk with Lenders Mortgage Insurance. Lenders Mortgage Insurance may reduce the deposit requirement to a minimal 5% or less.
A deposit can take the form of cash equity in the transaction but may also be equity in other property that is able to be mortgaged to the lender.
In some cases lenders, such as Keystart in W.A., will lend for owner occupied housing with low deposits and no Lenders Mortgage Insurance.
Call Your Local Finance mortgage broker on 1300 787 665 to discuss your options.
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