Should I take a 100% home loan?
What is a 100% home loan and would it be the best bond for you? This depends on your personal circumstances, financial goals and life stage, but here are some of the most important things to know about 100% home loans.
What is a 100% home loan?A 100% home loan, also called a 'zero deposit bond', is a bond that covers the full purchase price of the property, so you would not be required to put down a deposit as part of the deal.
How do I get a 100% home loan?It will be up to the banks to decide whether you are offered a 100% home loan or not. Factors they take into account will include your credit record, your ability to afford the monthly repayments, and the value of the property you want to buy. You can see how a good credit record and healthy affordability calculations would work in your favour!
Should I save a deposit?Even if you qualify for a 100% home loan, don't discount a deposit because it could prove important in your home-buying. A deposit tells sellers and estate agents you are serious about buying so it makes it more likely that your Offer to Purchase will be accepted. Secondly, a deposit brings down your monthly bond repayments because it means you will need to borrow less from the bank. Thirdly, it makes it more likely that your home loan will be approved because it shows you're a committed buyer. It is entirely up to you, but as you can see, you really can gain by saving a deposit.
You don't have to go out and get different home loan offers from different banks - we bring them all to you. That's how BetterBond makes applying for a bond easy and convenient. Without charging you a cent, we do all the work and come back to you with offers from the banks for you to compare and choose the one that best suits your needs.
A home is one of the biggest things you'll ever buy. Let BetterBond get you the best deal on your home loan.