Zero deposit home loan

[Vishalbhop]

Hey anybody has any reviews about zero deposit home loan.

Here is the scenario,

I am looking to buy a unit around 400k. The company is saying,they can do 250 k zero deposit. for remaining 150 k ,I need to pay 15%which is only $22500 k deposit.
I have attached the link.any body bought a house like this.

https://nzcubaywide.co.nz/get-a-loan/home-loans/

[batgirl1001]

Building societies are not subjected to the lending restrictions imposed on banks and may have the means to loan you funds for a home loan. However that doesn't mean they wouldn't impose their own tough lending criteria on you and other penalties such as higher loan rates and insurances. They are financial companies and not banks and hence they do and can fail meaning if the building society fails, the creditors will go after your property. Banks on the other hand operate with assets and reserves and are designed to absorb shocks and global turmoil.

I would get advice from an accountant or lawyer whether such a move would be financial prudent for you. If you can't afford to even get a minimum 10% deposit for a house, then perhaps it wouldn't be a good idea to buy a house at all even if there is a strong pull.

[RickSarah]

So is 10% the lowest that you can have as a deposit with a bank when buying a house ? We just brought a house here in Switzerland a month ago and now I am going to be starting work in Dunedin in 2 weeks so we will be looking at buying but all our money went into this house and I hate paying rent, would rather buy.

[batgirl1001]

The normal lending criteria for home buyers is 20% deposit for the LVR. In some circumstances it can be lowered to 10%, usually for a Welcome Home Loan or if you are building a new house.

[breeze]

The lower the deposit you have, the higher the interest charges for the home loan.

[Hagabel]

We managed to get a 10% down for our first house as we qualified as a first time home owner, but needed 20% down for our land and building our present house.

[Vishalbhop]

Thanks you all for the feedbacks

[nms.sun3]

The normal lending criteria for home buyers is 20% deposit for the LVR. In some circumstances it can be lowered to 10%, usually for a Welcome Home Loan or if you are building a new house.

gone are those days of obtaining loans with 10% deposit Is that section/build combo offered by developers or did you buy the section on your own ?

[batgirl1001]

We purchased the land and build separately but the lender lumped together the deposit payment and it was 23%. The 10% deposit for a new build is the lowest minimum but it is not offered to everyone who wants it, rather it is subject to the lender's requirements and do often come with penalties like higher interest rates or mortgage insurance.

[VivTom]

Hi All,

The catch with NZCU Baywide is that they approve loans where they have branches and so Auckland, Hamilton and and other norther, regions are not included. Their interest rates are not that high as well. "ViashalBhop" please let me know if it went on well with you.