No Deposit Home Loan Refinance

No deposit 100% refinance home loan Is No Longer Available

It is now possible in many instances to release the original deposit paid to purchase a property by refinancing a home loan up to 100% of the property value. Reasons for refinancing to 100% could be where a borrower wants to convert to a more economical loan that their present loan but property values have not increased or have even decreased. Other reasons could be to release the original deposit that was initially paid for other worthwhile purposes.

Thousands of home owners refinance or top up their home loan every year to access the equity and borrow money for a multitude of reasons against the equity in their property at home loan interest rates. These property owners have usually achieved this equity in their property through regular loan repayments reducing the debt, property values increasing above what was initially paid for the property or a combination of the two.

A 100% no deposit refinance may now provide for borrowers who have limited equity in a property to refinance and access funds at home loan interest rates. This could be advantageous in instances where a personal loan for example has a much higher interest rate than the no deposit home loan interest rate and there will be only the one loan repayment instead of two.

A 100% no deposit home loan could also be an attractive option for a property investor seeking to maximise their leverage and free up existing equity available in investment property or owner occupied property to assist in the purchase of additional investment property.

Care should be taken in calculating the potential effectiveness of a 100% refinance. Set up fees and loan insurance costs need to be factored in to ensure that therefinance has potential to become positive over time.

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