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New no-deposit home loan offering launched

by Charbel Kadib11 minute read
Siobhan Hayden

Mortgage marketplace HashChing has re-introduced a deposit-free home loan product to support the entry of first home buyers into the mortgage market.

HashChing has announced that it has re-introduced a no-deposit home loan to its product suite, available to tertiary-educated citizens or permanent residents living in Australia that earn more than $150,000 per annum ($180,000 combined income for couples) and that have been working in a professional field for more than three years.

Reportedly funded by Granite Home Loans, interest rates for the loan start at 6.5 per cent - but will drop down to a standard variable rate once the loan reduces to an 80 per cent loan-to-value ratio (LVR).

The COO of HashChing, Siobhan Hayden, said the new offering would assist the entry of first home buyers (FHBs) into the property market, claiming that other FHB initiatives have fallen short of their objective.  


“Even with a projected decline in property prices this year, saving a deposit is a Herculean task for most young Australians,” she said.

“The many restrictions of the First Home Super Saver Scheme mean that it just doesn’t cut it, especially in the Sydney and Melbourne property markets. Because of this, there’s a clear gap in the market, and we’re proud to be able to offer a workable and realistic solution.

“We know that for many people, purchasing a property is a thirty-year proposition. By enabling no-deposit home loans, we are letting eligible Australians start on this journey sooner, at a competitive rate.”

Ms Hayden said that the new loan, which is an iteration of other deposit-free home loans offered to medical and legal professionals, was a response to demand for product innovation from mortgage brokers.

“Our army of community-rated mortgage brokers already help Australian borrowers by dealing with banks, non-banks and other lenders on their behalf,” she added.

“Working together, we can build solutions that truly meet borrower needs and respond to changes in the market faster than ever before.”

She continued: “In this case, we can see that it is already accepted practice for medical and legal professionals to be granted 90 per cent LVR with lender’s mortgage insurance waived.

“We’re pleased to be able to extend this out further to no-deposit lending and broaden the offer to other professions such as those in finance, IT and engineering fields.”

Ms Hayden added that the product would provide prospective borrowers with greater independence in the home-buying process.

“Young Australians have been asked to borrow from the bank of mum and dad or to save 20 per cent of a house price whilst likely meeting rent costs and student loan repayments,” Ms Hayden said.

“On top of this, the banking royal commission has tightened access to credit.”

She concluded: “We are offering another way for those that have been left out of the market through no fault of their own to get onto the property ladder and, ultimately, to own their own home sooner.”

[Related: Lender launches new product range]

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