Secure a home loan with a 10% deposit
While it might look all doom and gloom for mortgage rates and lending requirements in the current economic climate, don’t throw buying your first home into the too-hard basket just yet. A bank’s appetite to lend depends on several factors. That’s why, when applying for a home loan, working with a mortgage adviser will ensure you secure the right deal.
Great financial advice will save you time and money – and ultimately enhance your mortgage application. Here’s how:
1. We deal with multiple lenders every day
Our mortgage brokers can access a large pool of lenders, which gives them the power to negotiate on your behalf, broadening your financial opportunities. All banks analyse application information uniquely, with differing requirements for approval. Some banks will consider a 90% loan, while with others, you’d be hard-pressed to get 80%. We leverage our long-term relationships with banks to help you get more competitive interest rates and better home loan terms.
2. We understand which bank is the most suitable for your application
Finding the best home loan is more than just securing a low interest rate or lenient rules on 10% deposits. It’s also about choosing a bank that will accept your financial situation and implement a great loan structure to suit you, ensuring that you pay your mortgage off as quickly as possible.
This can save you a lot of interest in the long run – and depending on your situation, mortgage advisers may be able to reduce or fully waive some of the initial fees that banks usually pass on to customers (such as application fees). In many cases, they can also obtain great benefits for you, such as mortgage cashback.
3. We stay on top of shifts in the market
The property market is constantly changing and it’s our job to know all the ins and outs of interest rates, fees and lending criteria. This way, we’re always armed with the right information to negotiate the best deals possible – and it can make a massive difference. For example, while a 20% deposit is desirable, with the right advice, first home buyers can purchase with as little as a 10% deposit.
We make sure your loan will be affordable for your specific situation and what likely changes are on the horizon. From there, we can engage in discussions about the potential impacts on your monthly repayments and borrowing power.
4. We’re experts at curating successful applications
When applying for a mortgage without an adviser, you generally have to submit a different application to each bank. A mortgage adviser can do this for you. You send one application to us, and we compile specific information to send to each bank. From there, we liaise directly with the banks, so you don’t have to spend your time going back and forth.
Mortgage advisers can tell you if your application may get rejected and damage your credit score. They’ll also let you know how to improve your situation and give you an idea of when you may be in a better position to purchase a property.
How to get a loan with a 10% deposit
As long as you meet all the standard borrowing requirements, many banks are happy to approve a 10% deposit for a home loan. However, most banks won’t do a pre-approval for this amount. This means, when you make an offer, it has to be accepted conditionally before you can apply for the loan – the bank will want to check the value of the property first. This makes buying from auctions trickier, but it can be done when you have a great broker on your side.
Let us do the legwork
With any huge investment, research and knowledge are fundamental to success. Shopping around for the best deal can take weeks, sometimes months. Our mortgage advisers do all the legwork for you, using their expertise and relationships to advise you on the best offers in the market. Not only that, but we also assist with valuations, building inspections, loan structuring and future repayment risks – and we don’t charge a cent. Your chosen bank pays the fee once we secure your home loan. So, why wouldn’t you take advantage?
Start your journey to homeownership today. Get in touch with the team at Global Finance.
**These are general guidelines and are by no means a reflection of bank or lending policies