OwnHome Deposit Loans: Bridging the Gap to Homeownership

For many Australians, saving for a deposit remains the biggest hurdle in the journey to owning a home. Rising property prices and slow savings growth make it harder for potential buyers to achieve their dreams. OwnHome deposit loans offer an innovative solution, providing aspiring homeowners with the funds they need for a deposit, helping them enter the property market sooner.

Note: OwnHome currently offers deposit loan services across most Australian states, excluding Tasmania (TAS) and the Northern Territory (NT).

OwnHome helps borrowers secure deposits and fast-track homeownership in most Australian states

What is OwnHome?

OwnHome is a deposit loan lender focused on eliminating the deposit barrier for property buyers. Unlike traditional mortgage loans, which finance the full property purchase, OwnHome specializes in lending the deposit required, enabling borrowers to secure a property without years of waiting and saving.

How Does OwnHome Work?

1. Application: Borrowers apply for a deposit loan from OwnHome, usually amounting to 5-20% of the property value, depending on the lender's deposit requirements.

2. Integration with Home Loan: Once approved, the deposit loan is combined with a traditional mortgage from a bank or another financial institution.

3. Repayments: Borrowers repay the deposit loan through manageable installments, alongside their primary mortgage repayments.

4. Low Deposit Premium (LDP): Borrowers pay an upfront or rolled-in LDP, a fee designed to offset the lender's risk for providing a deposit loan.

Key Features and Benefits of OwnHome Deposit Loans

• Available Across Most States: OwnHome’s deposit loan services cater to buyers in most Australian states, excluding TAS and NT.

• Low Deposit Premium (LDP): A one-time fee that simplifies deposit access compared to traditional LMI.

• Bridging the Deposit Gap: Buyers no longer need to rely solely on savings, reducing the time needed to achieve homeownership.

• Interest Rates: Deposit loans typically attract higher interest rates than primary mortgages, often ranging between 12.5-13.5% annually, due to their unsecured nature.

• Streamlined Process: Borrowers benefit from a quick and efficient approval process, helping them secure their deposit with minimal delays.

Who Can Benefit from OwnHome’s Deposit Loans?

OwnHome’s services are ideal for:

• Buyers with stable incomes and good credit, but insufficient deposit savings.

• Those eager to enter the property market without delays caused by saving for a deposit.

• Borrowers are looking for a flexible way to bridge the deposit gap.

Things to Consider

While OwnHome provides a practical path to homeownership, borrowers should evaluate:

• Repayment Terms: Ensure affordability of both the deposit loan and the primary mortgage.

• Eligibility: Meeting OwnHome’s credit and financial requirements is necessary for approval.

• Loan Costs: Interest rates (12.5-13.5%) and the Low Deposit Premium (LDP) may increase the overall cost of the loan.

OwnHome deposit loans are revolutionizing the path to homeownership by eliminating one of the most significant hurdles: saving for a deposit. By offering tailored solutions to aspiring property owners in most Australian states (excluding TAS and NT), OwnHome empowers Australians to secure their dream homes faster and more efficiently.

If saving for a deposit has held you back, consult a mortgage broker today and explore how OwnHome’s deposit loan lender services can help you achieve your homeownership goals.

Frequently Asked Questions (FAQs) about OwnHome Deposit Loans

What is OwnHome, and how does it differ from traditional home loans?

OwnHome is a lender specializing in deposit loans, helping buyers secure the upfront deposit required for a property purchase. Unlike traditional home loans, which fund the property purchase itself, OwnHome provides financing specifically for the deposit.

Can I use OwnHome in all Australian states?

OwnHome deposit loans are available in most Australian states except Tasmania (TAS) and the Northern Territory (NT).

What is the Low Deposit Premium (LDP)?

The Low Deposit Premium (LDP) is a one-time fee borrowers pay to OwnHome when securing a deposit loan. It functions similarly to Lenders Mortgage Insurance (LMI) but focuses on covering the risk associated with the deposit loan. The LDP is non-refundable.

What are the interest rates for OwnHome deposit loans?

Interest rates for OwnHome deposit loans typically range between 12.5-13.5% annually, reflecting the unsecured nature of deposit loans. The exact rate depends on individual borrower profiles, including credit scores and financial history.

How does the repayment process work for a deposit loan?

Borrowers repay the deposit loan in installments, alongside their primary mortgage repayments. It’s important to budget for both loans to ensure financial stability.

Who is eligible for an OwnHome deposit loan?

OwnHome is ideal for buyers who:

• Have a stable income and good credit.

• Lack of sufficient savings for a full deposit.

• Are you ready to enter the property market and can you manage both deposit and mortgage repayments?

Can I combine an OwnHome deposit loan with any lender’s mortgage?

Yes, OwnHome deposit loans work alongside most traditional home loans, making them a versatile solution for borrowers. Consult your mortgage broker to ensure compatibility with your chosen lender.

Are there risks associated with deposit loans?

Like any loan, deposit loans come with risks. Borrowers should carefully consider their ability to manage repayments, interest rates, and the Low Deposit Premium before proceeding. Always consult with a mortgage broker or financial advisor to ensure suitability.

How quickly can I get approved for an OwnHome deposit loan?

OwnHome offers pre-approval in just 48 hours, allowing borrowers to move quickly in securing a property once their deposit loan is approved.

What is the loan term for OwnHome deposit loans?

The loan term for an OwnHome deposit loan is typically 15 years, providing borrowers with a manageable repayment period alongside their primary mortgage.

Are there early repayment fees on OwnHome deposit loans?

No, OwnHome does not charge early repayment fees, allowing borrowers to pay off the deposit loan faster without any additional costs.

How can I apply for an OwnHome deposit loan?

To apply for a deposit loan with OwnHome:

1. Visit their website and fill out an application form.

2. Submit the required documents, including proof of income and credit details.

3. Await approval and coordinate with your mortgage lender to finalize your property purchase.

Disclaimer:

The information provided on this website is for general information and educational purposes only. It does not take into account your personal objectives, financial situation, or needs, and should not be relied upon as financial, legal, or tax advice. While we strive to ensure the content is accurate and up to date, we make no guarantees of its completeness, reliability, or suitability. Any reliance you place on the information is strictly at your own risk. We recommend that you seek independent professional advice before making any financial decisions, including from a licensed mortgage broker, financial adviser, or tax professional. References to government schemes, grants, or lender products are subject to change and eligibility criteria. Please confirm details with the relevant authority or provider. We are not responsible for any loss, liability, or damage incurred as a result of the use of this website or its content.