Mortgage loans are the largest loan that most people will ever obtain and this will result in a huge burden on the economy. The most common thing is that you as a borrower must pay a cash deposit of at least 10% of the total loan amount. This is something that many want to avoid.
There is also no law that states that banks must take out a cash deposit for home loans.
However, this can be very difficult to get rid of as the banks normally require a cash deposit for a mortgage, as we have said before. Your chance of getting a mortgage loan that covers the entire cost is usually just that the home you are buying is so cheap that the cost is well below what it is valued at. This may mean that the bank thinks it is safe to offer a mortgage loan that covers the entire amount. Otherwise it is standard to offer a maximum of 85% as a loan-to-value ratio.
Creditworthiness – fast approval
The other option is that you have such a good credit rating plus that the house price is so low that the bank thinks that there is no risk of lending the entire amount to you. You can then expect not to get a mortgage loan that covers the entire sum without you having to borrow the remaining 15% in the form of unsecured loans. These are more expensive but maybe it’s just the choice you have.
However, do not expect to get a home loan without cash, but it is better that you plan the economy in such a way that you can afford it. Although it will then take some time to save up the required money.