Hairstylists and Homeownership: Conquering the Deposit Hurdle

Turning your dreams of owning a home into reality is an exciting step. But for hairdressers in Australia’s pricier cities like Sydney or Melbourne, saving a hefty deposit can feel like a major hurdle. Here, we explore some options to help you navigate the deposit requirements for your home loan journey.

Stepping onto the Property Ladder with Lower Deposit Options:

Many lenders offer low deposit mortgages, where you might put down as little as 5% of the property value. However, keep in mind that a lower deposit typically translates to a higher interest rate on your loan, increasing your overall repayments.

Another avenue to explore is government support for first-time home buyers. Schemes like the First Home Loan Deposit Scheme (https://www.housingaustralia.gov.au/support-buy-home/first-home-guarantee) can help eligible applicants secure a home loan with a deposit as low as 5%.

The Power of a Guarantor:

If you have a close relative or friend with strong financial standing, you might consider a guarantor loan. A guarantor essentially acts as a safety net for the lender, assuring them that the loan will be repaid even if you encounter difficulties. This can make you a more attractive borrower and potentially allow you to secure a loan with a smaller deposit.

Remember:

  • Do your research: Talk to different lenders and brokers to compare options and find the loan that best suits your circumstances.
  • Consider the long-term: While a lower deposit might seem appealing upfront, factor in the higher interest rates associated with it.
  • Seek professional advice: A mortgage broker can provide personalized guidance and help you navigate the home loan application process.

Owning your own home is within reach! By exploring lower deposit options and considering a guarantor, you can turn your dream of homeownership into a reality.