Can I get a loan without a deposit?
Many people ask the question – can you actually get finance without a deposit? Well, as it happens, yes you can.
If your parents or a close family member has equity in their property, then you might be able to take out a family guarantee or family pledge loan. A family guarantee loan is what happens when the guarantor (usually the parents of the applicant) guarantees part of the loan (often 20% plus costs) using their own property. This is known as a security guarantee.
While quite a few banks offer a family guarantee loan many of them have strict criteria. Often, the guarantors must get independent legal advice, some banks won’t accept a second mortgage and others need the guarantors to show that they can service the portion of the loan that is guaranteed.
A family guarantee loan is not your standard bank loan, therefore, it’s great to have some expert knowledge in your corner when you apply for one. Graeme Christiansen is a Pivotal Finance financial advisor who works with RE/MAX, helping local Brisbane residents make their dreams a reality when it comes to homeownership.