The prevailing idea is that to get a home loan, you got to be ready to pay a hefty deposit. In truth, you can actually borrow 95% of the property’s purchase price – and in certain situations, even up to 100%. This is done using Freedom Lend’s family pledge.

But before you can borrow 95% of the property’s value, be sure to have these requirements ready:

• A credit history that’s in the clear
• Proof of stable employment over the past several years
• Proof of income (and your income has to be good)
• Good asset position
• Proof of genuine savings
• Very little, if any, existing debt

On the other hand, 100% financing is only made available to guarantor loan applicants. Guarantor loans are where your relatives register their property as collateral against your home loan. It doesn’t matter if, say, your parents already have an existing mortgage. If they have enough equity in their property, they can use it as a security for your loan.

If you have the family and resources, guarantor loans are a great way to save money, as it frees you from paying any Lenders’ Mortgage Insurance (LMI).