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Property developer Catapult Property Group has launched a new lending division that will help first home buyers get home loans with a deposit of only $5,000.
The Brisbane-based company encourages first home buyers in Queensland to enter the real estate market now by taking advantage of the state government’s $20,000 grant that is ending on 30 June 2018.
Catapult director for residential lending Paul Anderson said first home buyers do not require a 20% deposit plus fees to enter the property market.
“There are many banks that are happy to finance a purchase from as little as 5% deposit and in some cases even less than that,” he said. “When working with property specialists such as Catapult Property Group who have the builder, broker and financial advisors under the one roof, it’s possible to secure a loan with as little as $5,000.”
To get a home loan with a minimal deposit, the company requires that applicants have a full-time job with a stable employment history, a consistent rental payment record, and a clear credit score.
Borrowers may also need to get lenders' mortgage insurance.
“Mortgage insurance on a $450,000 home purchase with a minimal deposit usually ranges from $7,000 to $14,000, which is added to your mortgage. This is a more realistic means of entering the property market than trying to save a potentially unattainable amount of around $100,000 for a deposit,” said Anderson.
The loans are not restricted to Catapult projects, said a representative for the company.
The company says it has almost $130m of residential projects in Queensland and NSW.
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