Buying a home is a big decision and a major milestone in life. It can be especially daunting for first-time home buyers who don’t have two years of employment. But don’t worry, you’re not alone. In Australia, there are plenty of options available to help you get into your first home.
In this guide, we’ll cover the different ways you can get a home loan if you don’t have two years of employment. We’ll also discuss the different types of loans available and how to prepare for the home buying process.
Getting a Home Loan Without Two Years of Employment
If you don’t have two years of employment, it can be difficult to get a home loan. But don’t worry, there are still options available. Here are some of the ways you can get a home loan without two years of employment:
1. Use a guarantor: A guarantor is someone who agrees to be responsible for your loan if you can’t make the payments. This could be a family member or a close friend. The guarantor will need to have a good credit history and be able to provide security for the loan.
2. Get a low-doc loan: Low-doc loans are designed for people who don’t have two years of employment. These loans require less paperwork and don’t require you to provide proof of income. However, the interest rates on these loans are usually higher than traditional loans.
3. Get a no-doc loan: No-doc loans are similar to low-doc loans, but they don’t require any paperwork at all. These loans are usually only available to people with good credit and a steady income.
Types of Home Loans
Once you’ve decided how you’re going to get a home loan, it’s time to decide which type of loan is best for you. Here are some of the most common types of home loans available in Australia:
1. Fixed-rate loans: Fixed-rate loans have an interest rate that stays the same for the life of the loan. This makes it easier to budget and plan for your payments.
2. Variable-rate loans: Variable-rate loans have an interest rate that can change over time. This can be beneficial if interest rates go down, but it can also be risky if interest rates go up.
3. Interest-only loans: Interest-only loans allow you to pay only the interest on the loan for a certain period of time. This can be beneficial if you’re trying to save money in the short-term, but it can be risky if interest rates go up.
Preparing for the Home Buying Process
Once you’ve decided on a loan type, it’s time to start preparing for the home buying process. Here are some tips to help you get ready:
1. Get pre-approved: Getting pre-approved for a loan can help you know how much you can afford and make the home buying process easier.
2. Get your finances in order: Make sure you have a good credit score and that you’re up to date on all your bills.
3. Save for a down payment: The more money you can put down, the less you’ll have to borrow.
4. Shop around: Don’t just go with the first loan you find. Shop around and compare different lenders to find the best deal.
At The Home Loan Partners, we understand that buying a home can be a daunting process, especially for first-time home buyers without two years of employment. That’s why we’re here to help. We have a team of experienced mortgage brokers who can help you find the right loan for your needs. We’ll work with you to find the best loan for your situation and make sure you understand all the details.
If you’re a first-time home buyer without two years of employment, don’t hesitate to reach out to us. We’d love to answer any questions you have and help you get into your first home. Contact us today to get started.