All Topics / Finance / Finance with no deposit

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  • Profile photo of ToniLFToniLF
    Participant
    @scottie63
    Join Date: 2005
    Post Count: 1
    February 13, 2005 - 2:48 pm

    Hi

    I am a single guy (41 yrs of age) trying to rebuild my life again after divorce. My ex wife got our house in the divorce settlement. No bitterness, we are great friends still.

    But I am just wondering if there are any possibilities of obtaining finance with no deposit, to buy a unit or small house, without paying exhorbitant rates.

    If anyone out there can help as to lenders that consider a no-deposit mortgage, would be great to hear from you.

    Thanks

    [suave2]

    Profile photo of Paul DobsonPaul Dobson
    Participant
    @pauldobson
    Join Date: 2003
    Post Count: 1,196
    February 14, 2005 - 12:01 am

    Hi Scottie

    I can think of 3 options. There probably are more.

    1. When I was a mortgage broker we had access to a lender who would supply loans to 105%, 110% and 115% of valuation. You have to be perceived as a very “solid” risk by the lender to get one of these. That usually boils down to a great employment history (among other things). The interest rate is usually up to a couple of percent above the norm.

    2. Purchase a property from somebody who supplies vendor (seller) finance using what is called an “Instalment Sales Contract”. With these you can usually “get in” for a deposit as low as $1,000. You won’t get the FHOG so we’ll discount that. I know suppliers of this type of finance who “sell” their money from as low as 6.2% all the way up to 9%.

    3. Another form of vendor (seller) financing is the “Lease/Option”. Here you lease a property for anywhere from 1 year to 30 years. At the same time you buy an “option” from the seller to purchase the property for a fixed price at anytime up until the expiry of the option. A lot of suppliers of lease/options also credit a portion of your rent towards your deposit. Thereby allowing you to build your deposit while actually occupying your future home and , at the same time, benefitting from any capital gain over and above your agreed option (strike) price. Once again, I’ve seen people “get into” a lease/option agreement for as little as $1,000.

    This web site has some great information on both lease/options and Wraps (Instalment Sales Contracts). I’d suggest you do a search and read about both. Also, contact a good mortgage broker and check out if the 105%, 110% and 115% mortgages are still available.

    I hope this helps.

    Cheers, Paul

    Paul Dobson | Vendor Finance Institute
    http://www.vendorfinanceinstitute.com.au
    Email Me | Phone Me

    An alternative way to finance your home.

    Profile photo of Nat RNat R
    Member
    @nat-r
    Join Date: 2004
    Post Count: 224
    February 14, 2005 - 1:10 am

    Scottie you have a PM

    Nat

    Profile photo of Mobile MortgageMobile Mortgage
    Member
    @mobile-mortgage
    Join Date: 2003
    Post Count: 913
    February 14, 2005 - 1:21 am

    Hi Scottie,
    There are a number of lending institutions offering 100% finance, Adelaide Bank, Homeloans Ltd, St george, Cheers.

    Steven Crane
    Interest Free Home Loan Agent
    [email protected]
    Phone: 0438 581 436

    PLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.

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