The properties available to you as a prospective buyer are determined by whether your deferred deposit is funded by OwnQuest or the Bank of Mum & Dad

OwnQuest has partnered with several property developers to make quality apartments and townhouses available to OwnQuest qualified buyers. By doing this we can fund your deferred deposit without charging you interest over 5 years. You will need to meet lender home loan servicing and valuation requirements.

Alternatively, where your deferred deposit is funded by the Bank of Mum & Dad, you can purchase any property you like, subject to your home loan servicing capacity and the property valuation meeting lender criteria.

When you purchase a property through us, you only need to provide 1% of the purchase price as an initial deposit, plus standard transaction costs (approximately 4-6%).

For example, on a $600,000 property:

• You provide: $6,000 (1% deposit)
• Plus, approximately $24 – $36,000 for Stamp Duty (subject to any government exemptions and the state you reside in) and government charges.
• The remaining 9% deposit ($54,000) is paid off over 5 years and, provided you make all repayments on time, you will pay no interest.
• You will pay $900 per month off your deposit loan, on top of your regular mortgage payments.

To qualify for an OwnQuest deposit loan and home loan you will need 1% of the property purchase price plus transaction costs (4-6%) such as stamp duty. You will also need to have sufficient income to meet the repayment of your deferred deposit and home loan, whilst also meeting your monthly living costs.

Subject to the purchase price of your preferred property you will need a combined pre-tax income of at least $140,000.

By working with selected developers, we are able to fund your deferred deposit without charging you interest, provided all repayments are made on time.

We do not provide a high interest 2nd mortgage, nor do we take any equity in your new home. So, there are no nasty surprises. We recognise you have the income to buy a property today and we work with you to build equity in your new home as quickly as possible reducing interest costs and improving your financial position.

We work with you to identify and explain all the costs you will incur as a property buyer.

In addition to your 1% deposit, you should expect to meet the following costs.

• Stamp Duty
  This is 3-5% of the property price subject to which State you reside in and your eligibility for State Government exemptions.
• Government transfer fees ($2,950 – $3,300)
  These are State Government registration fees on the transfer of title and your mortgage.
• Conveyancing costs ($2 – 2,500)
  This is your legal costs for review and settlement of your property sale. If you don’t have a conveyancer, we can recommend someone local for you.
• Lender fees ($300 -1,000)
  These may include application, legal and valuation fees
• OwnQuest Deposit Loan Application Fee $4,950
• Lenders Mortgage insurance (LMI)
  When you borrow more than 80% of the value of a property, lenders take out insurance to cover them (not you) should you be unable to meet future repayments. LMI has a bad reputation, but it allows you to borrow much more than you otherwise could. Some lenders call it a Loan Protection or Risk Fee but it is effectively the same thing. It may cost 1 – 3% of your home loan amount and is often included in your home loan, rather than paid upfront.

Depending on the financial position of Mum & Dad, they may be able to gift you an amount of money towards your home deposit. Lucky you!

But many Mums & Dads will need that deposit amount back to fund their retirement and/or your siblings. An OwnQuest deferred deposit allows Mum & Dad to invest in your financial future without charging you interest on the deferred deposit. OwnQuest documents the agreement and manages repayments, protecting both you and your parents.