How Can You Buy a House without the Deposit in Australia?

When it comes to purchasing a house in Australia, deposit is the first obstacle that you have to face. Arranging finances to pay the deposit can be quite difficult, especially for those who have no money on hand or who recently paid a big debt. However, you do not have to give up your dream of owning a house in the fear of deposit. There are still ways to buy a home or get mortgage with no deposit.

Here are three ways to help you out.

First of these ways is to use your existing property to get the equity loan.Equity is the difference between the actually worth of your property and the mortgage you owe on it. Therefore, if your existing house’s value is higher than the mortgage, then you can have the access to this equity and use it for your benefit. However, as mentioned above, it only works if you have a property that is high in value.

If you do not already have a property and want to buy one without the deposit, then you can use the joint venture method.You may not have the capital to pay for it, but one of your friends, colleagues or a relative, basically a trustworthy person can invest with you and pay the deposit. You can collaborate with them to make your dream come true of owning a house.

The third way to achieve your aim is through a family pledge guarantor.Your family member(s) can put up security for the deposit for you to purchase the house. The rest, you can get through a loan (secured by your property). It means that the 20% security for the deposit that your family member paid is secured against another property they own. The bank gets double security and you get the house.

These methods can help you buy a house without deposit and get home mortgage even with bad credit. Such methods are helpful for those, who financially struggle or do not want to pay the deposit, when buying a house.