Tips On How To Rent To Buy A House

Tips On How To Rent To Buy A House

by

Susanne Dubey

Owing a home of your choice is dream come true in today s world where prices keep on plummeting extravagantly every now and then. But there are indeed very few of you who can buy a good home outright on cash. Many of you can afford a suitable home only after taking loan from bank or other private financial institutions. More often, these lenders ask for deposit which is not possible for everyone. And sometimes exaggerated documentation and processing charges make you pull out of the deal. For such people who very much wish to avail of home loans, there are certain registered lenders that provide

no deposit house Melbourne Australia

.

House no deposit Melbourne loan provisions hold the promise of fulfilling your fantasy of owning a home. That is why lately; young people who have just started their career and do not have enough deposit to rent to buy house Melbourne are opting for house no deposit Melbourne option which seem quite appropriate for them. Even older people who have lost everything or are low on savings and are intending to buy a property are keen on using the option of home loans with no deposit. But it is important to understand how the whole procedure works.

How to rent to buy a house?

Even though the

rent house to buy Melbourne

says that it is a home loan with no deposit, you will need to arrange for some amount of petty cash for paying the stamp duties and some other processing fees. Although stamp duties are fixed and are drawn on the value of the property you are supposed to house to rent to buy, other charges vary from company to company and at times are negotiable depending upon your past credit record with the bank. But one condition that is common for all the money lenders is that so as to get house for rent to buy Melbourne loan, you need to have 5 percent of deposit in your savings account for minimum period of three months. Since the coming up of mortgage stress crisis period, for gaining 100 percent loan, you have to maintain the required balance for the stipulated period.

Are guarantor loans different?

House to rent to buy loan can be availed on the basis of a guarantor so that the money lender can give you complete buying price of your house. Although the stamp duty charges are still not waived off in this case, getting the entire buying amount as loan is a huge relief. These types of loans have become quite popular lately and different companies have named various names for their loan products. So as to choose the most authentic loan product, you should consult a mortgage broker. Usually the guarantor should be parents or blood relatives. Friends and colleagues are not entertained as guarantors by most of the banks and hence before deciding to approach a particular bank for the guarantor loan make sure that your parents or relatives own a property that can be mortgaged against the loan.

Author, Susanne Dubey specializes in writing about

Vendor Finance Home Australia Melbourne

, Vendor Finance Home Melbourne, Rent To Buy Melbourne, deposit for home loan,

Rent To Own Australia

& home loans without deposit melbourne subjects.

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ArticleRich.com