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How to enter the property market with a small deposit

Mortgage Sphere Feature Article

How to enter the property market with a small deposit

With the steady rise in house prices we’ve seen over the past decades, many new home buyers and investors are wondering how they can get their foot on the ladder.

Fortunately, there are still ways you can purchase a property without needing a large deposit.

Here are four ways to get started purchasing a property earlier than you might have thought.

How to enter the property market with a small deposit

Lenders Mortgage Insurance

Lenders Mortgage Insurance (LMI) is a one-off upfront premium that’s added to your home loan balance. It is put in place to protect the lender.

LMI allows a borrower to take out a mortgage on a property with a deposit less than 20 per cent. The cost of LMI will vary depending on the amount of money you’re borrowing, as well as your LVR.

Home Guarantee Scheme

The home guarantee scheme is a federal government program to help first home buyers enter the property market.

The scheme works by requiring a borrower to put down as little as a 5 per cent deposit while the Government will act as the guarantor for the remaining 15 per cent. The goal of this is to help get the borrower up to the lender’s 20 per cent threshold. There are also other schemes that fall under this program that allow single parents to borrow with as little as a 2 per cent deposit.

Applications are limited to first home buyers that meet certain income and eligibility criteria, and there are certain price caps on homes.

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Guarantor Loan  

A guarantor loan works by having another person, typically a close family member, provide equity or security in their property to fund a portion of the deposit for your home.

This is normally only available to first home buyers and it’s important to understand that a borrower is still required to manage the repayments and meet serviceability requirements based on their own income.

Purchasing with someone else 

If you can’t qualify for a loan on your own, it might be possible to buy a home with the help of someone else.

If one person has a good income and strong serviceability while the other has a cash deposit saved, you might be able to partner up.

This type of arrangement will depend a lot on the goals of the individuals and if you can put a plan in place. This strategy requires knowing how you’re going to manage the property and any ongoing expenses, as well as what you’re going to do with it if one party needs to sell.

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Personal Loans

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Personal Loans

Vehicle Finance

Business Loans

Commercial

How to enter the property market with a small deposit

How Mortgage Sphere helps with your next financial move

Find out more about finance with these articles
How to enter the property market with a small deposit

Home Loans

We give you the facts needed to make the right decisions. We take charge of the application process and work hard to find the home loan right for your circumstances.

How to enter the property market with a small deposit

Refinancing

If you need to unlock equity in your home or you’re wondering if you could be getting a better deal, we can help you decide if refinancing is the right option for you.

How to enter the property market with a small deposit

Vehicle Finance

Time to update your car? We can help. We work with many specialist car lenders with a range of flexible loan options for your next car, bike, boat, van or equipment.

How to enter the property market with a small deposit

Personal Loans

Instead of paying off several debts at varying interest rates, we can consolidate your debts into one easy one at a lower rate to ease your monthly burden and stress.

How to enter the property market with a small deposit

Investment Loans

Whether you are looking at capital growth or rental income, we can show you how property investment could be a great way to increase your wealth over a long period.

How to enter the property market with a small deposit

First Home Buyers

Buying your first home is a big step. But with us by your side, you’ll feel completely at ease. We’ll guide you through the maze and answer all your important questions.

How to enter the property market with a small deposit

Commercial Loans

Securing the right loan increases your businesses chance of success. Our finance specialists review your business plan and assist to define your ideal loan.

How to enter the property market with a small deposit

Small Business Loans

With so many small business loans available and so many ways to structure them. Our sensible advice will make your life easier and add genuine value to your business.

How to enter the property market with a small deposit

How Mortgage Sphere helps with your next financial move

Find out more about finance with these articles
How to enter the property market with a small deposit

Home Loans

We give you the facts needed to make the right decisions. We take charge of the application process and work hard to find the home loan right for your circumstances.

How to enter the property market with a small deposit

Refinancing

If you need to unlock equity in your home or you’re wondering if you could be getting a better deal, we can help you decide if refinancing is the right option for you.

How to enter the property market with a small deposit

Investment Loans

Whether you are looking at capital growth or rental income, we can show you how property investment could be a great way to increase your wealth over a long period.

How to enter the property market with a small deposit

First Home Buyers

Buying your first home is a big step. But with us by your side, you’ll feel completely at ease. We’ll guide you through the maze and answer all your important questions.

How to enter the property market with a small deposit

Vehicle Finance

Time to update your car? We can help. We work with many specialist car lenders with a range of flexible loan options for your next car, bike, boat, van or equipment.

How to enter the property market with a small deposit

Commercial Loans

Securing the right loan increases your businesses chance of success. Our finance specialists review your business plan and assist to define your ideal loan.

How to enter the property market with a small deposit

Small Business Loans

With so many small business loans available and so many ways to structure them. Our sensible advice will make your life easier and add genuine value to your business.

How to enter the property market with a small deposit

Personal Loans

Instead of paying off several debts at varying interest rates, we can consolidate your debts into one easy one at a lower rate to ease your monthly burden and stress.

Get in your new house faster with Mortgage Sphere.

Instead of paying off several debts at varying interest rates, we can consolidate your debts into one easy one at a lower rate to ease your monthly burden and stress.

all the lender options.

How to enter the property market with a small deposit
How to enter the property market with a small deposit
How to enter the property market with a small deposit
How to enter the property market with a small deposit
How to enter the property market with a small deposit
How to enter the property market with a small deposit
How to enter the property market with a small deposit
How to enter the property market with a small deposit
How to enter the property market with a small deposit
How to enter the property market with a small deposit
How to enter the property market with a small deposit
How to enter the property market with a small deposit
How to enter the property market with a small deposit
How to enter the property market with a small deposit
How to enter the property market with a small deposit
How to enter the property market with a small deposit
How to enter the property market with a small deposit
How to enter the property market with a small deposit
How to enter the property market with a small deposit
How to enter the property market with a small deposit
How to enter the property market with a small deposit
How to enter the property market with a small deposit

“Divit is always on hands, whatever time of day to answer any concern or questions. Friendly, honest and extremely knowledgeable. Highly Recommended. Very Transparent.”

Harshil Shah

How to enter the property market with a small deposit

“The experience has been amazing. Divit is very patient in listening to your needs and helps you find the perfect solution for you. The decisions regarding home loans can go tricky as it involves a lot of money but Divit made it very easy.

If you want to be looked after, Divit is the person to work with. In simples words, he is a legend!”

Chimnay Sonavane

How to enter the property market with a small deposit

“The Team at Mortgage Sphere, especially Divit helped me through the process and to be honest made it all extremely simple.

I didn’t know anything about getting my first home loan, but i feel everything was explained in a really easy to understand way”

Amanda Captone

How to enter the property market with a small deposit

“Divit and his team are .. well legends. They helped me even when another broker said that it was impossible. They found a solution, made it happen and I could not be happier with their service.

Thanks you so much Divit!”

Abishek Panday

How to enter the property market with a small deposit

“Divit is always on hands, whatever time of day to answer any concern or questions. Friendly, honest and extremely knowledgeable. Highly Recommended. Very Transparent.”

Harshil Shah

How to enter the property market with a small deposit

“The experience has been amazing. Divit is very patient in listening to your needs and helps you find the perfect solution for you. The decisions regarding home loans can go tricky as it involves a lot of money but Divit made it very easy.

If you want to be looked after, Divit is the person to work with. In simples words, he is a legend!”

Chimnay Sonavane

How to enter the property market with a small deposit

“The Team at Mortgage Sphere, especially Divit helped me through the process and to be honest made it all extremely simple.

I didn’t know anything about getting my first home loan, but i feel everything was explained in a really easy to understand way”

Amanda Captone

How to enter the property market with a small deposit

“Divit and his team are .. well legends. They helped me even when another broker said that it was impossible. They found a solution, made it happen and I could not be happier with their service.

Thanks you so much Divit!”

Abishek Panday

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How to enter the property market with a small deposit

Frequently asked questions

Your opinions are important to us. Whether it is a simple question or a valuable suggestion, we are here 24/7. You can call us by phone or email us directly.

How to enter the property market with a small deposit

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Copyright © 2022 – Mortgage Sphere

Copyright © 2022 – Mortgage Sphere