3 Ways to Help You Own Your Home Sooner

With the increased cost of living, the ability to save for a deposit for a home loan - especially in the Sydney market – is a hard ask for many. 

Here are 3 options that may help you stop paying rent and get onto the property ladder sooner.

1.     Property Share : 

A growing number of people are splitting the costs of buying a home by partnering with a sibling or friend so they can share mortgage repayments with someone they trust. Analysis by CommBank shows that the number of applications with two or more applicants is trending up, from 64 per cent in 2014 to 67 per cent in 2016, while the number of single applicants for mortgages is slowly trending down. 

This approach coincides with the rise in multi-generational living and provides buying power that comes with two generations contributing to a property.

2.     Guarantor Loans: 

You  may be familiar with guarantor loans as a way for parents to form joint property ventures with their children. These loans help young people get into the housing market sooner by allowing parents or family members to use their own property as additional security. 

The advantage of this is that Lenders Mortgage Insurance can be avoided with the additional security, saving home owners up to $40,000. 

Guarantors can generally come off the loan in 2 to 3 years with the increase in capital growth as well as the payment of the loan. Even if there is not quite 20% equity in the property after this time, the home owner can generally wear the mortgage insurance as it would be less than when they were initially purchasing the property.

3.   Become a Doctor/Dentist/Accountant /Lawyer/Vet 

Professions such as these (and this is not exhaustive) are eligible for No LMI (Lenders Mortgage Insurance) up to 90% LVR.

Again this can save these professions $1000’s of dollars on their first and subsequent homes.

If any of this interests please do not hesitate to call get in touch for further information.