It is implied that financing companies
are benefiting in one way or the other even if they are providing home
loans with no deposit to the residents of Australia. What could be the
benefits? Firstly, companies are charging an effective market interest rate on
the loan that they are giving. They are in a way earning through money and will
eventually get the principal amount back. Secondly, with the government backing
the idea of rent to buy a house in Melbourne,
lending companies would definitely be benefiting from the government in some
way because they wouldn’t lock up their finance into a risky contract for
nothing. Deposit on loan is basically a guarantee by people that they have been
saving and would continue to save money in far future, thus guaranteeing the
payback of their principal loan amounts over the period of contract.
First Home Buyers are given additional
incentives through grants. As much as $7000 is granted to couples/families who
want a home loan requiring an initial deposit. To make the process easier and
attractive there are facilities to get a No Deposit Home Melbourne in their ownership via financing
companies such as Easy Wealth. A no deposit home loan does have certain
conditions attached for example, evidence of savings hitherto, monthly budget
and expenses, monthly income reaching a specific threshold and so on. The
owning of houses improves the GST situation in a country which further
strengthens the economy, so the government is encouraging ownership of houses
and financing companies are assisting the government.
