Can you get a home loan without a deposit?

[Amaunet]

We are buying a house/negotiating/borrowing at the moment. Its our second house but I remember some of the details from last time.

You can use the first home buyers grant as a deposit - $14K till the end of the year and then $7k. If you don't have at least 5% deposit (usually the minimum) you will prob have to pay mortgage insurance which is $$$ - over $5K - but this may be able to be added to the loan or sourced as a seperate personal loan. If its your first home you also don't have to pay stamp duty.

As for what a bank will lend you - it's based on your income and debts and factored together with you costs. Our credit union used a cost of living estimate of over $900 per fortnight living expenses with one dependant (it made no difference he's only 4 months) and then looked at what we would have left after other repayments etc.

Its worth meeting with you bank to get an idea of where you stand. I would also factor in a potential interest rate rise - we are estimating 8% in our "affordability".

Good Luck!

[danniellabella]

Thanks. I think we might at least talk to a mortgage broker to get some sort of plan. Hopefully we'll be pleasantly surprised

[Lulu]

and bugger - being self employed bring a whole 'nother issue...

[danniellabella]

and bugger - being self employed bring a whole 'nother issue...

Oh yeah...forgot about that with DH
Well, I earn more than him and my income is regular. Can't hurt to talk to someone though...what's the worse that can happen...they say no. Nothing ventured, nothing gained right? We have nothing to lose in finding out our options.

[Snacks]

Yup, talk to a broker. (PM me if you want the name of a really good one!)
Have you considered family equity? If either yours or DH's parents own their home and are willing to help you out, this can be a good option. If you don't have a 20% deposit, you have to pay Lenders Mortgage Insurance, which as a PP said is bloody expensive. If you do go down the family equity track, the bank will require that they receive independent legal advice and the advice is usually that you take out a life insurance or mortgage insurance policy - a bit extra for you to pay, but you can shop around, and this protects your parents and their home if something bad should happen to you and you can't pay your mortgage.
Yes, paying off your debt with no late repayments gives you a clean credit history, but that doesn't guarantee you anything.
Good luck!