Can I apply for a home loan with a low deposit?
One of the biggest hurdles to buying a property is saving for the deposit. This is the sum of money coming from you that will be used to purchase part of the property, with the loan being what you need to cover the rest. When buying a home or investment property the most important thing is that you can manage the repayments.
If you only have a small deposit a Pepper Money loan may still be possible if you are:
- A first home buyer being helped by family or friends
- Refinancing with equity in the home
- Investing with equity in other property
In the current environment, some of our regular home loan options may not be available. We are happy to discuss your situation to see if we can help
Genuine versus non-genuine savings or gifted deposits
It’s important to remember that a gifted deposit – for example, a loan from your family or relatives – is not considered ‘genuine savings’. The reason for wanting genuine savings is it shows that you can manage your money.
The good news is that, unlike most traditional lenders, at Pepper Money we can accept gifted deposits on a majority of our loan products. Other forms of deposits such as a private loan and non-genuine savings may also be accepted. However, we will always need to do an assessment of your individual circumstances and eligibility based around your credit/repayment history, employment, income, and existing debts.
Help at hand
Here are some handy tips and guides to help you get started with a home loan with a low deposit.