A "no deposit" loan will enable you to purchase a house with "no deposit". This means that you can borrow the whole of the purchase price of your property. There are other charges that need to be paid which will not be covered by the loan, such as stamp duty, rates and taxes, conveyancing costs, applications fees and the like. However, we can assist you to cover these costs by way of the first home owners grant or personal loans. You may need to meet the cost of mortgage insurance which is insurance to protect the lender in the event that the borrower does not pay the loan. This affords no protection for the borrower, although it is paid for by the borrower. It is a one off payment, which may never need to be paid again, unless the loan is refinanced or the borrowings are increased.

An equity share enables a borrower to purchase the property in conjunction with a third party. The third party will grant the borrower a loan of up to 35% of the purchase price or valuation, whichever is the lower. This 35% will have no interest charges or repayments required, until such time as the property is sold or the borrower opts to pay part or all of the equity shared component. This enables a borrower to purchase a property that might otherwise be unaffordable. For example, if you could only afford a loan of $200,000, an equity share mortgage will enable you to borrow $307,000, with only repayments to be made on the $200,000 component of the mortgage. If, after 10 years, the property is sold and has doubled in value, (such that the property was now valued at $614,000) the Institution, offering the equity share would receive $144,290 and you would receive $162,710.

This allows family members to help their children purchase a house without costing them any money or increasing their mortgage. This type of lending does away with the need for a deposit, by substituting a deposit with the equity held in the parents' property. This means that the children do not need to pay for mortgage insurance, a saving of around $7,000 on an average purchase. It also means the children can keep their first home owners grant to purchase furniture rather than utilising it to meet the purchase of the property. All costs associated with the purchase and debts can be added into the loan.