First Home Buyers often try to buy their first home with the smallest deposit available to them.
Next Home Buyers may have had growth in their current property. This might have generated extra equity to borrow against. Or they could have sold their former property and now have a much larger deposit for their next home.
Financing with a larger deposit, can result in a smoother loan application process.
When you have a larger deposit, lenders are often willing to be a bit more lenient.
A larger deposit can help increase your chances of loan approval if you have been employed for a short time. It will also help if you have been running your own business for less than two years.
Lenders may also be willing to overlook small credit file defaults. Particularly, if they are to mobile phone or utility providers.
We currently have over 30 lenders on our lending panel. Each lender has different deposit requirements.
Having a larger deposit gives you more lenders to choose from. This leads to you having more options available, which gives you a better choice of the market. This will generally result in you paying lower fees and/or lower interest rates.
A wider array of lenders to choose from, leads to lower rates, which can lead to lower repayments.
If you are able to put down a larger deposit it also means that you are going to have a smaller loan. This can make your cash flow situation more manageable. Especially if you hit tough times or periods when you might need a little more disposable income.
If you have a large or small deposit we can help you finance your home purchase. Please get in touch with us about our obligation free Mortgage Broker service.