Your first home without 20% deposit

Dreaming of owning your first home but feeling stuck because you don’t have that magic 20% deposit?

You’re not alone, and more importantly, you’re not out of options. While saving 20% is ideal, there are other ways to get your foot on the property ladder.

A guarantor arrangement with family

If a parent or family member is willing to guarantee part of your loan, banks often treat your application as if you already have that 20% deposit. This means you’ll qualify for better interest rates, avoid low-equity fees, and might even score some cash back offers.

Banks can approve some low deposit loans

Regulations actually allow banks to approve up to 20% of their home loans for people with less than 20% deposit. The catch? Banks are selective about who gets these loans. Having a conditional offer accepted on a property puts you at the front of the queue, so it’s worth getting pre-approval and starting the house hunt.

Loyalty has its rewards

If you’re already an existing customer, you might find they’re more willing to work with you on a low-deposit mortgage. Your history with them may work in your favour when competing for those limited low-deposit lending spots.

Banks like new builds

Banks can be much more generous with lending if you are buying a new build. You may be able to secure a mortgage for a new home with just a 10% deposit. New builds are seen as lower risk because they come with warranties and modern features that hold their value well.

Come and talk to us

Don’t let a smaller deposit derail your homeownership dreams. With careful planning and the right approach, we can help find a path that works for your situation. Come and talk to Judy or Peter at Mortgage Link Hawke’s Bay. They are Financial Advisers who understand these options and can help structure the best solution for your circumstances. Your first home might be closer than you think.

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