No Genuine Savings Home Loan

Dreaming of buying a home but struggling to save for a deposit? It’s tough, especially for expats and foreign buyers. But fear not, there’s a solution – no genuine savings home loan. In this article, we’ll dive into this exciting option, exploring eligibility, benefits, and tips to find lenders offering such loans.

Discover a pathway to homeownership that breaks the traditional savings mould. Let’s get started!

What is a No Genuine Savings Home Loan?

A no genuine savings home loan is a type of mortgage that doesn’t require you to have a deposit. This means that you can borrow 100% of the purchase price of the property.

Not all lenders offer no genuine savings home loans, so it’s important to shop around and compare different lenders before you apply.

Get a free Australian mortgage assessment today.

Apply online to get a free recommendation with real rates and repayments.

Who is Eligible for a No Genuine Savings Home Loan?

In general, a “no genuine savings” home loan refers to a type of mortgage where the borrower is not required to demonstrate a history of genuine savings, such as having a certain amount of money saved up for a deposit. Instead, other factors such as creditworthiness, income stability, and ability to afford the loan repayments are given more weight. 

In Australia, eligibility requirements for a no genuine savings home loan can vary between lenders. However, here are some common criteria that borrowers typically need to meet:

  • Good credit score: Having a good credit score is important as it demonstrates your creditworthiness. Lenders will assess your credit history, including any outstanding debts, late payments, or defaults. A higher credit score increases your chances of qualifying for a no genuine savings home loan.
  • Ability to afford repayments: Lenders will evaluate your income and expenses to determine if you can comfortably afford the monthly mortgage repayments. They will consider your income level, existing debts, and living expenses. Generally, your total debt obligations (including the new loan) should not exceed a certain percentage of your income.
  • Stable income: Lenders prefer borrowers with a stable income source to ensure loan repayments are made consistently. They will assess your employment history, type of employment (e.g., full-time, part-time), and stability of income. Self-employed individuals may need to provide additional documentation to verify their income stability.

How to Get a No Genuine Savings Home Loan

If you’re interested in getting a no genuine savings home loan, you can follow these general steps:

  • Research lenders and loan options: Conduct thorough research to identify lenders and loan products that offer no genuine savings home loans. Look for reputable lenders with favourable terms and conditions.
  • Seek guidance from a mortgage broker: Engage a mortgage broker who specialises in these types of loans. They can provide expert advice, help you navigate the process, and connect you with lenders that suit your specific circumstances.
  • Assess your financial situation: Evaluate your credit score, income stability, and ability to afford mortgage repayments. Ensure your financial situation aligns with the general eligibility criteria for no genuine savings home loans.
  • Gather required documentation: Prepare the necessary documentation, including identification papers, proof of income, bank statements, and any other documents requested by lenders. This will help streamline the application process and improve your chances of approval.
  • Submit a strong application: Work closely with your mortgage broker to craft a compelling loan application. Emphasise your creditworthiness, income stability, and ability to meet repayment obligations to showcase your suitability for a no genuine savings home loan.

Should You Get a No Genuine Savings Home Loan?

While there are potential benefits to obtaining a no genuine savings home loan, it’s essential to carefully evaluate your individual circumstances and consider the following factors:

  • Getting into your own home sooner: One advantage of a no genuine savings home loan is that it can help you enter the property market sooner, even if you haven’t accumulated a significant savings deposit. This can be beneficial if you’re eager to become a homeowner without waiting to save a substantial amount.
  • Potential savings on interest payments: By accessing a no genuine savings home loan, you may be able to secure a competitive interest rate. This can result in long-term savings on interest payments over the life of the loan, potentially reducing the overall cost of homeownership.
  • Increased flexibility in repayments: Some no genuine savings home loans may offer flexible repayment options, such as variable repayment amounts or the ability to make extra repayments without penalties. This flexibility can provide you with greater control over your mortgage and potentially help you pay off your loan faster.

However, it’s important to consider the following aspects:

  • Higher interest rates or fees: No genuine savings home loans might come with higher interest rates or additional fees compared to traditional home loans. It’s crucial to carefully compare the interest rates, fees, and overall loan costs to ensure that the benefits outweigh the potential extra expenses.
  • Lender requirements and restrictions: Each lender may have specific criteria and limitations for no genuine savings home loans. These can include stricter credit score requirements, lower loan-to-value ratios, or limited borrowing capacity. Ensure you understand and meet the lender’s requirements before proceeding with this type of loan.
  • Financial stability and risk assessment: While no genuine savings home loans focus less on savings history, lenders still assess your financial stability and ability to repay the loan. Consider your income stability, employment prospects, and ability to afford mortgage repayments over the long term to ensure you can comfortably meet your obligations.

Can Australian Expats Qualify for a No Genuine Savings Home Loan?

Yes, you can qualify for a no genuine savings home loan if you’re an Australian expat. However, there are a few things you’ll need to do to qualify.

First, you’ll need to have a valid Australian visa. You’ll also need to have a bank account in Australia and be able to provide proof of income from overseas. In addition, you may need to provide a letter from your employer stating that you’re employed full-time and that your job is secure.

The specific requirements for no genuine savings home loans for Australian expats vary from lender to lender. So, it’s important to shop around and compare different lenders before you apply.

Engage an Expat Mortgage Broker

Looking to buy a home in Australia without a deposit? Consider a no genuine savings home loan. But before you apply, ensure you qualify and understand the loan terms. If you’re an expat or foreign buyer, additional requirements may apply. However, these loans can make owning an Australian home a reality.

Our specialised expat mortgage broker assists Australians abroad in securing no genuine savings home loans. With their expertise, finding the best deal becomes effortless. Reach out to us today to speak with one of our expat mortgage brokers, kickstart your home buying journey, and get answers to all your questions.

Get a free Australian mortgage assessment today.

Apply online to get a free recommendation with real rates and repayments.

Frequently asked questions

The interest rates on no genuine savings home loans can vary depending on the lender and the applicant’s credit score. However, they are typically higher than the interest rates on home loans with a deposit.

The repayment terms on no genuine savings home loans can vary depending on the lender and the applicant’s circumstances. However, they are typically shorter than the repayment terms on home loans with a deposit.

The biggest risk of getting a no genuine savings home loan is that you may end up owing more money than you can afford. If you’re not able to make your monthly repayments, you could end up in financial difficulty. Here are other key risks to consider:

  • Higher interest rates: No genuine savings home loans may come with higher interest rates compared to traditional home loans. This can result in increased long-term interest payments, potentially making the loan more expensive over its lifetime.
  • Stricter eligibility criteria: While no genuine savings loans offer flexibility in terms of savings history, lenders may have stricter criteria in other areas, such as creditworthiness or income stability. Failing to meet these criteria can result in loan rejection or limited borrowing capacity.
  • Potential financial strain: Without a significant savings buffer, there is an increased risk of experiencing financial strain if unexpected expenses or changes in financial circumstances occur. Difficulties in making monthly repayments can lead to financial hardship and potential default on the loan.
  • Limited borrowing capacity: No genuine savings loans may have lower loan-to-value ratios (LVRs), which means you may need a larger deposit or be limited in the amount you can borrow. This can impact your ability to purchase the desired property or require you to seek additional funding sources.
  • Market fluctuations: If the housing market experiences a downturn, there is a risk of negative equity, where the value of your property falls below the outstanding loan balance. This can make it challenging to sell or refinance the property if needed.
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