When it comes to purchasing a home, one of the biggest considerations for many first-time buyers is the amount of deposit required. Traditional lenders often require a large deposit, often 20% or more of the home value, in addition to Lenders Mortgage Insurance (LMI), which can add thousands of dollars to the cost. This can make it almost impossible for many first-time buyers to enter the real estate market.
However, there is an alternative solution for those looking to purchase their first home. There are specialized companies, such as Low Deposit Homes, that can assist first-time buyers in securing financing with a much lower deposit than required by major lenders. The Gold Coast-based company, founded by industry expert Chaice Paterson, specializes in helping first-time homebuyers purchase their dream home with a low deposit. With years of experience as a broker, Chaice understands the difficulties that many first-time buyers face when trying to save enough for a large deposit.
Through access to exclusive products, Low Deposit Homes can help clients avoid Lenders Mortgage Insurance and therefore buy a house with as low as 5% deposit of the home value. This can save thousands of dollars for the buyers and put them in a position to buy a home much sooner than they thought possible.
In addition to assisting with the deposit, Low Deposit Homes can also help clients access government grants, such as the First Home Owners Grant, and assist in applying for stamp duty concessions. These can provide significant savings and reduce the financial burden of buying a home.
Low Deposit Homes also offers an extensive range of services that cater to the needs of first-time buyers. They will guide clients through the entire process of purchasing a home, from assessing borrowing capacity and forming a budget, to identifying locations and the type of house the client can be approved for, and even helping them find the right mortgage for their needs.
When it comes to loan repayment vs rent, Chaice Paterson explains, “Let’s use an example of a $650,000 house in Logan Reserve. The mortgage would be approximately $615,000. The average rent in the same estate for a new home is $520 per week. Based on the interest rate of 4%, the repayment would be $679 per week. For an extra $159 per week difference.”
He further explains that depending on where you currently live, your mortgage repayments may be slightly higher than what you are paying in rent. However, over time the loan will be paid off, and you will own your own home, in which every payment is paying off your mortgage – rather than your landlord’s mortgage.
Buying your first home can be a daunting task, but it doesn’t have to be. By understanding your financial situation and researching different options, you can make an informed decision on whether to rent or buy. With the help of industry experts such as Chaice Paterson and Low Deposit Homes, you can achieve your dream of homeownership sooner than you thought possible. Don’t let the deposit hold you back from achieving your dream of owning your own home.