Technically, you need a deposit on every loan. BUT we have a few tricks that can help you get that deposit down.
The first home owner’s grant in Queensland is a $20,000 that helps first home buyers enter the property market. This money from the government can go towards the deposit on your new home.
You are eligible for the first home owner’s grant if you meet the following criteria:
- You are at least 18 years of age,
- You are an Australian citizen or permanent resident,
- You have not previously owned property in Australia,
- You are building or buying a new home,
- You are buying a new home or land that is worth $750,000 or less.
You may also be eligible for a transfer duty (stamp duty) concession if you:
- Have never held an interest in residential land anywhere in the world,
- Have never claimed the first home vacant land concession,
- Are buying a home valued less than $550,000—though you can still buy a home valued more than $550,000 and claim the first home concession, the benefit of it is reduced to zero. However, the home concession rate is still used to calculate the duty,
- Will live in the home as your principal place of residence,
- Are at least 18 years of age (though we may waive this requirement in special circumstances).
For additional information about home owner concessions, please visit the Queensland Government website – https://firsthomeowners.initiatives.qld.gov.au/ or https://www.qld.gov.au/housing/buying-owning-home/about-concessions-for-homes/.
Family guarantee loans
Banks will be happy to lend you money using the Guarantor’s property as security, provided they have enough equity. The most common structure is to borrow 80% against the property you are purchasing and 20% against the Guarantors property.
This can be a great way to get into the property market if you are renting and struggling to save! There are other parameters and it can get confusing, so get in touch with us if you have any questions about this.
Gift from parents/relatives
This one is pretty self-explanatory. It basically means that someone has gifted you a sum of money or you’ve received inheritance money that will go towards your deposit.
Personal loan as a deposit
This means that you will have two loans at once. A personal loan is different from a home loan. You are basically using a personal loan to pay your deposit on your property, and then taking out a loan/mortgage to pay for the remainder of the property.
We advise against this unless you are on a very high income and can pay off the personal loan quickly – please speak to us before you consider this as an option.
Different job types
The banks see some professions as lower risk than others, meaning these professionals may need a smaller deposit whilst still avoiding paying lender’s mortgage insurance (LMI).
This will vary from bank to bank and from person to person, so get in touch with Shoheel to understand your borrowing capacity.
Disclaimer: this article provides general information only and does not take into account the circumstances of each individual. As such, the information above must not be taken as professional advice. If you would like advice from one of our specialists, please get in touch with Shoheel Khan on 0418 110 870 so that we can provide solutions that meet your specific needs and situation.