Macquarie's Magic for First Home Buyers

With so much of your income going towards your rent at the moment, buying your own home might seem like a distant dream. Consider this all of your rent is going towards making a property investor richer, and that rent is money that you will never see again. On the other hand, purchasing your own home is the first step on the path to becoming a property investor yourself, and the money you pay towards your home loan results in you owning your own home.

So, what's a renter to do? With ever-increasing competition between banks and lenders in the Australian mortgage market, new products are continually being introduced as home loan solutions to entice borrowers to certain financial institutions. One such product is the no-deposit home loan option offered by Macquarie.

A no-deposit home loan means you can borrow up to 100% of the value of your property. It's important to note that this amount will be based on an independent valuation conducted by Macquarie, and not based on the purchase price.

Macquarie's no-deposit home loan option is best suited to first home buyers with a good income and clean credit record, who can comfortably afford to make the loan repayments.

The downside of no-deposit home loans is the number of restrictions placed on these type of loans, for example sometimes there are limitations on the type of property that you are able to buy. Because of the level of risk involved, no-deposit loans such as the Macquarie option can have stricter lending criteria, so before applying you should be confident that you have the means to repay the loan as well as an excellent credit history.

Borrowing 100% of the value of your property means that you will pay more interest overall than you would if you had a deposit, but the ability for first home buyers to get a foothold on the property ladder is a great incentive for no-deposit home loans.

While you don't need to save for a deposit for a Macquarie no-deposit home loan, remember that you will still need to cover the costs of Lenders Mortgage Insurance, tax, fees and charges and more.

Find out more about applying for your first home by speaking with your financial broker. They will be able to help you to explore all of the home loan options available to you and assist you in bidding your landlord goodbye.

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