Buying a home is a dream for many Australians, but saving up for that deposit can feel like a mountain to climb. If you’re eager to get your foot in the door but haven’t quite reached your savings goal, a personal loan might be an option worth considering. While it’s not the right choice for everyone, a personal loan can give you a boost towards your home deposit, helping you secure your new property sooner. Here’s how it works and what to keep in mind.

Why Use a Personal Loan for a Home Deposit?

Many first-time buyers find that building up a deposit is the biggest hurdle to securing a home loan. A personal loan can act as a top-up for your deposit, potentially making you eligible for a mortgage faster. With the added deposit, you may be able to negotiate better terms on your home loan or meet the requirements for a particular lender. It’s essential, though, to ensure that the total borrowing remains manageable, so your monthly commitments remain affordable.

Things to Consider

1. Affordability: Make sure you can comfortably manage repayments on both your personal loan and home loan.
2. Interest Rates: Personal loans usually have higher interest rates than home loans. Weigh the cost and benefits carefully.

How a Mortgage Broker Can Help

Taking out a personal loan for a home deposit is a big decision. This is where a mortgage broker comes in. A broker can assess your financial situation, help you understand the impact of adding a personal loan, and connect you with the right lenders.

Ready to Chat?

If you're considering a personal loan to help secure your property deposit or want guidance on navigating your mortgage options, we're here to help.