New mortgage product caters for first-home buyers with low deposits

PHOTO: Squirrel is introducing a new mortgage product offering first-home buyers with higher incomes borrowing of up to 95 percent. Getty.

A new mortgage product is available for first-home buyers who want to get onto the property ladder but haven’t got enough of a deposit.

Announcing its new mortgage product ‘launchpad’ on Wednesday, Squirrel, a mortgage brokerage and investment company, says borrowers must save a deposit of at least 5 percent – less than the standard 20 percent.

It’s designed for first-home buyers with higher incomes who due to income caps don’t qualify for the First Home Grant or First Home Loan. In most cases, borrowers won’t have to pay for a valuation to get the loan approved – a common bank requirement.

Arranging mortgages for first-home buyers and seeing their frustrations trying to save the required deposit while house prices increased, Squirrel CEO John Bolton said he wanted to help.

“It’s a stepping stone… the idea is to get people into their first home and on the ladder. That’s the hardest bit and Launchpad will solve that for many people,” Bolton said.