How much can I borrow with a 10% deposit?
How much you can borrow depends on the properties you’re considering in addition to where they’re located. A bigger deposit will give you a smaller loan with less interest, and typically speaking, 10% is the minimum required deposit. It’s always better to aim for at least 20% because if you’re borrowing more than 80%, you’re also going to need Lenders’ Mortgage Insurance.
To be eligible for a 10% deposit, you need to show job stability, a favorable credit file, minimal current debt, steady income, and be able to add 5% of the total amount to genuine savings. Qualifying is the first step. From there, it’s best to speak with a knowledgeable mortgage broker.
It’s important to remember, a home loan with a 10% deposit is considered high risk, so the most you may be able to borrow could be up to $1 million. This is highly dependent on the property, your personal history, income, and other requirements held by the mortgage lender.
Professions also make a difference as to what you can borrow with a 10% deposit. If you’re a doctor and registered with the Australian Medical Association, you may not have to have LMI, and you may qualify to borrow up to $4.5 million. Other professions that can also enjoy these perks include lawyers, engineers, and accountants.