Alternative pathways to buying your first home

If you’re planning to step onto the property ladder and find yourself facing some challenges, there could be another road to take.

Here are some pathways to consider outside the conventional route to homeownership.

Low deposit home loans

The process of pulling together a large deposit can be a challenging experience that takes time. The good news is there are options to help fast-track the process.

Some lenders, like Liberty, offer low deposit home loans allowing you to borrow up to 95% of the property price.

Lending costs such as Lenders Mortgage Insurance (LMI) can also be added into your loan and paid over time. This could mean saving less for the deposit and opening the door to your new home sooner.

Government support

To help first-time buyers get into the market, Australian state and federal governments offer several types of support, such as the First Home Loan Deposit Scheme (FHLDS).

Under the FHLDS, those eligible could buy a house with a deposit as low as 5%. A Liberty Adviser can help you explore the different government schemes available and your eligibility.

Using a guarantor

A guarantor is a person who offers up some of their own home equity to help you secure a home loan. The guarantor co-signs the loan and essentially agrees to cover the repayments if you are unable to.

While using a guarantor could mean you pay a smaller deposit, you both need to understand the obligations involved before entering into this agreement.

Buying an investment property

First-time buyers could get their foot on the property ladder sooner by rentvesting rather than buying a home to live in.

By purchasing an investment property in a more affordable location and renting in the area you wish to live, you could get into the market sooner and with a smaller deposit.

To explore this and any other pathway available on your homebuyer journey, speak with a Liberty Adviser today.