Estate agents 'a creative bunch'
With access to low-interest home loans dwindling, experts have reported that first-home buyers and estate agents are getting creative to ensure people can get on the ladder.
According to the Australian, many first-home buyers are offering to leave equity in a property with the lender to act as a deposit, allowing home loans to be granted with a lower downpayment.
This is done on the assumption that once the home loan duration is up, buyers will be in a position to refinance or pay the amount in full.
“If you have reasonable income, no equity and no property at all, this can be an effective strategy for getting started,” the paper stated.
It added that in such a scenario, first-home buyers would be given appropriate advice on home loan terms, rates and their refinance options.
Meanwhile, a report from the Advertiser has urged Aussies to make sure they do their research thoroughly when looking to refinance in order to bag themselves the best deal on the market.