Are you trying to get into your new home, but you’re not having much luck saving up for the massive deposit? Don’t let it discourage you! Here are 5 alternative methods* that could help you get that deposit together!
1 - Use your Super
. That’s right! Your superannuation can now help you in more ways than one. If you make voluntary contributions into your super account, you may be eligible to withdraw as much as $30,000 and put the money towards a home loan deposit. The best part is, you could enjoy tax deductions you wouldn’t normally get if your full salary went straight into your savings account. You can start to do this from 1 July 2018 under the Federal Government’s First Home Super Saver Scheme
2 – Get a guarantor
. By choosing your parents to act as guarantors, you’ll be able to put up your loan against their property (provided they own it) and borrow enough money to pay for your new home. Once the value of your property has sufficiently increased, or enough of your mortgage has been repaid, all you have to do is discharge your guarantors from their security bond. You can always count on family!
3 – Use a personal loanˆ
. If you’re really good at saving and don’t have any existing debts, you may be able to take the do-it-yourself approach and apply for a personal loan to help with your home loan deposit. Just be sure to be careful with your calculations.
4 – Use your equity
. If you already own property that has substantial equity, it could be used as the deposit towards your home loan without the need for any upfront cash˜. It’s one of the reasons to get your existing homes valued as soon as possible!
5 – Get a gift
. Most lenders accept financial contributions from relatives and close friends in exchange for a loan deposit, so long as your donors are able to offer you a minimum of 5% of your house’s purchase price and don’t demand that the money be repaid.
*Information provided is general, factual information only. Seek advice to suit your needs before proceeding.
^Typically, terms & conditions for personal loans will be at higher rates of interest & require repayment much sooner than traditional home loans.
~Exclusive of cash funds that may be required to cover transaction costs, fees, duties, etc…