Everyone wants to have a place they can call their own. Problem is, saving up for it is not an easy feat. If you are like everyone else, finding low deposit home loans in Melbourne is not that easy. If it was then everyone own their own home, right?
The problem is when you search online the amount of information you find is overwhelming. Nothing makes sense because a lot of the information you’re getting is conflicting. First off, find a good mortgage broker (look no further) and let them be your Sherpa.
Getting into the market via low deposit home loans in Melbourne is like climbing a mountain. I’ve said many times before that no one climbs Everest without a team of Sherpas. That’s just crazy talk. On this mountain your main Sherpa is your mortgage broker.
Many people will tell you to get a pre-approval, settle a 20% down payment, and pay a monthly mortgage fee to make it happen. Thankfully, there are now options to help you get low deposit home loans in Melbourne.
In this article, I’ve listed a few pointers that will help you take advantage of this approach.
Know your options
There are many choices when it comes to low deposit home loans in Melbourne. Each of them has its own unique set of pros and cons. Before making a final decision on which plan to choose, consult a professional to make an informed choice. It’s critical to select the best loan suited to your paying capabilities.
Lenders often keep a strict criteria when it comes to granting low deposit home loans. This is to ensure that you have the ability to pay back your loan. For you to get approved for a low deposit home loan in Melbourne, certain requirements need to be met.
Good source of income
Lenders consider this carefully because it defines your capacity to pay the mortgage. Without a steady source of income, paying for a home loan becomes a tough hurdle.
Mortgage payments take a long time. Therefore, having a stable job ensures that you’re able to make payments on schedule. Switching jobs does not eliminate you from qualifying for a low deposit home loan in Melbourne but it may make it harder.
Not all houses for sale are viable for a low deposit home loan. Speak with your mortgage broker to get the information that you need before starting an application.
Clean credit background
The better your credit score, the more likely you will be approved for a loan. If you don’t have good credit yet, it’s never too late to make improvements. To understand more on credit files, check out this blog post.
Live a frugal lifestyle
Spending money is easy, but earning it can be an uphill struggle. This is why you should make every penny count. Think about how buying your very own home is important to you. Once you have sorted out your priorities, saving up for your new house becomes easy.
Even if you opt for a lower deposit, money remains to be an important resource. Think of ways in which you can cut down your expenses monthly. Start a savings account and set aside some money to put into it regularly. Soon enough, you’ll have the money to cover for your initial deposit and other fees.
Work with a mortgage broker
It always helps to have expert advice when you need it. I can say this with the experience helping buyers get into their own homes for over 13 years. This saves you from pitfalls and guesswork.
Will Bell Mortgage Broker is a mortgage and finance broker based in Melbourne specializing in residential home loans. Will is all about the average Australian understanding just enough of the broader economy to take action on your own personal economy. He is the host of the My Personal Economy Podcast which you can check out here.
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