They’re some big questions! Let’s take them one by one.
When searching for the widest range of home loans, we think it’s ideal to have a 20% deposit. While there are home loan products that cater for any size deposit, they generally cost more in fees if your deposit is less than 20%. As a credit assistance provider, UNO can help organise a loan for you regardless of the size of your deposit.
When a bank lends money, it takes a risk on both your capacity to repay and the market value of the property secured by the loan. A “mortgage” means the lender has a legal right to sell the property if you “default”, or fail to repay the loan according to your lender agreement. The lender is much happier for you to pay more as a deposit because it means it will be taking less of a risk on the loan.
Not only that but if you genuinely save up a deposit over six months or so, the lender may take that as a good sign of your ability to meet financial obligations and responsibilities.
If you have less deposit than required by one lender, you could try another. You need to be careful, though. Not only does shopping around take time, every lender you approach will conduct a credit history check. Every check is recorded on your credit history record and it may not look great to have too many in succession. Planning your home loan selection through UNO could help you avoid this.
Low-documentation home loans are generally available for self-employed applicants with a deposit of 20% or more. They’re also available for PAYG applicants in certain circumstances.