Buying a home is a wish that many people on the Gold Coast dream about. But with prices so high right now, it can seem like it is impossible to get there.

Most banks prefer you to have a 20% deposit for a home loan approval. Fortunately, that does not always have to be the case.

Did you know that there are other options available? Read on to learn about several ways you can get into the housing market without needing a full 20% deposit. Buying a house with no deposit or a low deposit could be a solution for you to find that dream home. It is strongly recommended you chat to a professional mortgage broker before applying for a home loan to ensure you know all the options available to your personal situation.

Go Lower with 5% Deposit

Some Gold Coast no deposit new homes are potentially available to prospective homebuyers. But they usually come with very strict criteria for approval:

  • Virtually perfect credit history
  • Stable and lengthy work history
  • Often a higher interest rate than other loans

If these are roadblocks for you though, many lenders also have much lower deposit loans available.

In some cases, you could have as little as 5% of the property price saved and still secure a loan. You may have to pay additional costs like lender mortgage insurance (LMI). But this could be a great alternative to buying a house with no deposit if you can swing the 5% deposit.

Understanding the First Home Owner Grant

The First Home Owner Grant is a national scheme that provides a one-off grant to eligible first-time homebuyers.

The grant itself can be used to help offset the cost of a home deposit. It may not cover the whole thing, but it could help a great deal.

Please note that the FHOG usually is paid on settlement for new homes or highly renovated ones. This means that if a home is being built or under major construction, you will not receive the grant until you make the first progress payment on the loan.

Also, you will bear the cost of other home buying expenses like moving, legal fees, and the like. These regulations vary by state and territory, so make sure to check all the requirements for your area first.

Can I Use My Superannuation?

Your super may also help pay for your home deposit using Australia’s First Home Super Saver Scheme (FHSS).

The FHSS allows for voluntary concessional and non-concessional (before and after-tax) contributions into your super fund to be used for your “first home savings”. You can then release these contributions and earnings toward the purchase of your first home.

There are some requirements you need to know with the FHSS scheme:

  • You must occupy the home as soon as it is practicable.
  • You must plan to stay in the property for at least 6 of the first 12 months of ownership.

There are also other requirements to using this program. Check with an expert to better understand everything you need to have in place for this benefit.

Get the Home Buying Help You Need

If you need some more information about no deposit home loans on the Gold Coast, get in touch with our team at Professional Lending Solutions. We will work with you to help you understand all the home loan options available to you.

Chat with us today and get the ball rolling on your own new home.