Low Deposit / Graduate Loan products to get you started sooner
Welcome to our business of getting South Australians into home ownership sooner. A range of innovative loan products can help overcome the barrier of high upfront deposits and costs and help you get into your own home sooner.
Getting people into home ownership sooner with a Low Deposit / Graduate Loan is now easier.
Firstly, with lower upfront costs and as little as 3% deposit, we can help you get started sooner.
Manageable repayments to help you plan ahead
A ‘Repayment Safeguard’ option helps break the link between interest rates and repayments, with initial repayments based on your financial situation and typically adjusted once a year in line with inflation.
A local team delivering a professional service
Every Low Deposit / Graduate Loan decision is made right here in SA by an experienced team that understands the local home market and your business.
You can move in sooner for less
From as little as 3% deposit*
As a result, Low Deposit / Graduate Loan deposits start from as little as 3% if you’re buying a property, and 6% if you’re building.
You can also save thousands on upfront fees. Lenders’ Mortgage Insurance (LMI) is something most banks and credit unions require to protect themselves in case you default on your loan. This type of loan doesn’t do this. We have something called a Loan Provision Charge (LPC) instead – it’s like LMI, just a lot cheaper for most borrowers.
Most importantly, we will also let you know about any government entitlements, fees and other charges that could be applicable when you’re buying a home.
Your situation is unique…So are we!
Innovative products to improve your eligibility
We assess your individual situation and will base your initial repayments around what you can afford.
Even accepting some Centrelink payments as income.
Also offering innovative products to improve your eligibility. For example, graduates with Certificate III or higher are eligible for a Graduate Loan, which allows you to get started from as little as 3% deposit.
Find out more
Low Deposit / Graduate Loan Benefits
Take the stress out of your home loan repayments
Introducing our Repayment Safeguard
Worried about how you’ll manage your repayments if interest rates go up?
Imagine taking the stress out of paying off your loan with our Repayment Safeguard.
Here’s how a Low Deposit / Graduate Loan ‘Repayment Safeguard’ works. Instead of linking your repayments to interest rates, we work out an initial repayment rate based on what you can afford. Usually, the only change will be an adjustment for inflation once every 12 months.
So, if interest rates go down, you’ll pay off your loan faster. If they go up, it’ll take a little longer unless you choose to make voluntary repayments. Either way, you won’t have to stress about changing interest rates and you can enjoy living in your own home with peace of mind.
Refinance with a bank when you’re ready
We understand your circumstances might change over time.
We are here to help you get into your own home sooner from as little as 3% deposit.
You may decide to refinance with a bank after a few years of home ownership. We just want you to pick the loan that’s best for you right now, and understand your circumstances might change over time.
Things to consider with a Low Deposit / Graduate Loan
1) Low deposit options
A Graduate Loan can help eligible graduates get started with deposits from 3% for established homes and 6% to build. Not a graduate? If you have a good savings history, the Low Deposit Loan has deposit requirements from as low as 3% for established homes.
2) Choose your rate
You can choose to fix the interest rate on your loan for terms of 1-3 years, or you can select a variable interest rate. You can also split your rate, so a portion is fixed and a portion is variable.
3) Boost your borrowing power
Top up loans can be added to a Graduate or Low Deposit Loan to boost your borrowing power. With most of these top up loans, there’s no need to make any repayments until your primary loan has been fully paid.
THE Low Deposit / Graduate Loan LOAN PROCESS
These steps are indicative of a Low Deposit / Graduate home loan process.
1. Saving your deposit
We have saving and budgeting tips to help you get started.
2. Applying for a loan
Call 0409 200 059 to talk to a Loan Consultant about your situation. We’ll discuss the options open to you after reviewing the documentation you supply us.
Meet with our Loan Consultant to have your application assessed.
Once we’ve assessed your loan application, and you meet all preliminary eligibility criteria, you will receive a Pre-Approval. This provides an indication of the amount the lender is willing to lend you, subject to a final review and formal approval process before you purchase a property. It can be organised in 5 to 10 business days, and is valid for up to four months.
Contact FMG Wealth Strategists
Low Deposit / Graduate Loan Specialists
3. Buying a house
Find a suitable house or block of land. If you decide to buy, make an offer. Sign the contract ‘subject to finance’ and other conditions of your choice such as satisfactory building and pest inspections. Send a copy to your Loan Consultant.
We recommend you hire a conveyancer at this stage, or even earlier. A conveyancer will check through the property contract and represent you on settlement day. Then, pay the deposit to the real estate agent.
4. Organising your loan
Organise building insurance as mortgagee on the policy. Then a property valuation will be arranged. A valuation will help confirm that the property’s value provides adequate security for your loan amount. This is also the time to let us know if you’d like to fix or split the interest rate on your loan. We can discuss the benefits /drawbacks at this time.
Once everything is in order and all eligibility criteria are met, the lender will formally approve your home loan. Read, check, sign then return your mortgage documents to the broker handling your application.
5. Celebrating your new home
As soon as your mortgage documents have been correctly signed and witnessed, it is time to proceed to settlement. In settlement, your conveyancer and the vendor’s representative meet with us to exchange cheques and property title documents. Your conveyancer then provides you with the keys to your new home.
FINALLY, you can now organise moving in – congratulations!
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Disclaimer: This article is factual information only. It is not intended to imply any recommendation about any financial product(s) or to constitute tax advice. If you need financial or tax advice please consult a licensed financial or tax adviser. The information in the article is reliable at the time of distribution, but may not be complete or accurate in the future. For information about a loan that may be suitable for you, call us on 0409 200 059.
Here’s what others say about us
From the moment I was referred to Debbie, she made feel confident that I would succeed in getting our home loan. She communicated every step of the way with my wife and I and always committed to getting information to us ASAP. Debbie was as excited as us and it felt that she too was buying the house. Debbie even created an outing to enjoy and celebrate the success of our journey. I thoroughly recommend Debbie to those who are seeking to purchase their house or any other financial help.From the moment I was referred to Debbie, she made feel confident that I would succeed in getting our home loan. She communicated every step of the way with my wife and I and always committed to getting information to us ASAP. Debbie was as excited as us and it felt that she too was buying the house. Debbie even created an outing to enjoy and celebrate the success of our journey. I thoroughly recommend Debbie to those who are seeking to purchase their house or any other financial help.
Contact FMG Wealth Strategists
Low Deposit / Graduate Loan Specialists