Zero deposit home loans

Discussion in 'Loans & Mortgage Brokers' started by JohnPropChat, 2nd Apr, 2020.

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  1. JohnPropChat

    JohnPropChat Well-Known Member

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    Not advertising - don't know anything about them - #doyourownresearch

    No Deposit 100% Home Loan for Professionals | Granite Home Loans

    I have seen the likes of BoQ do blended loans but the blended part is at personal loan rates. This product seems to be about 6% (on the full amount) until the LVR drops to 80% and/or refinance out.
     
    Last edited: 2nd Apr, 2020
    JohnPropChat, 2nd Apr, 2020
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  2. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    Take a look at the comparison rates. For the first 5 years it's going to cost you upwards of 5% in a market where rates are about half that. You're not going to be able to refinance any time soon because you have no equity in the property.

    I suspect it's a combination of a loan with a one funder and a personal loan to cover the rest.

    Keep in mind that there are options available to first home buyers under current government schemes that only require a 5% deposit that are extremely competitive under the FHLDS scheme.
     
    Peter_Tersteeg, 2nd Apr, 2020
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  3. Trainee

    Trainee Well-Known Member

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    If you assume 80% at 3%, then the 20% is maybe 12%. So its a personal loan.

    plus 5,500 application and settlement fee.

    it may be a good product for some, but its not a miracle.
     
    Trainee, 2nd Apr, 2020
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  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Niche for high income, low savings or low required unput and holding back cash for other things

    ta
    rolf
     
    Rolf Latham, 2nd Apr, 2020
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  5. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Reports on the weekend said many intended firsts home buyers with the depoist approval have pulled out and fresh places are available.
     
    Paul@PAS, 2nd Apr, 2020
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  6. Lindsay_W

    Lindsay_W Well-Known Member

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    Lindsay_W, 2nd Apr, 2020
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  7. Morgs

    Morgs Well-Known Member Business Member

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    We have them on panel.. might be good for some... but have not placed anyone there yet though.

    Lots of alternate solutions.. parental guarantor where available, FHLDS if applicable, etc.
     
    Morgs, 2nd Apr, 2020
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  8. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    I also saw another report indicating that the reservations have been extended for another 90 days to accommodate buyers in the current crisis.

    First home loan deposit scheme cut-off extended in the wake of COVID-19

    The extension brings many through to July when a new 10,000 allocations will become available.
     
    Peter_Tersteeg, 2nd Apr, 2020
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  9. sumterrence

    sumterrence Well-Known Member

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    I thought cocktail lending is not allowed?
     
    sumterrence, 2nd Apr, 2020
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  10. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    a few lenders are still ok with borrowed funds and NGS mitigations
    ta
    rolf
     
    Rolf Latham, 3rd Apr, 2020
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  11. Shazz@

    Shazz@ Well-Known Member

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    Honestly, if someone isn’t able to save a minimum 10% for a home, they probably shouldn’t own yet. I would hate to think how they would cover expenses such as emergency repairs etc.
     
    Last edited: 3rd Apr, 2020
    Shazz@, 3rd Apr, 2020
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  12. JohnPropChat

    JohnPropChat Well-Known Member

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    First home buyers have a fair few options but OOs less so. Not a product I would recommend but nevertheless an option for people that know what they are doing.

    Not much different to WA's Keystart program but that has more constraints.
     
    JohnPropChat, 3rd Apr, 2020
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  13. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    We wont facilitate such loans for that reason, unless there is compelling reason

    Some are

    • Recent Migrant with a high end job, funds locked away in OS property till sold
    • Their business needs the cash buffer or they are purchasing one
    • NGS does need to be mitigated somehow
    • Cash retained for defined opportunity
    • And we have a closed ended exit plan

    ta
    rolf
     
    Rolf Latham, 3rd Apr, 2020
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