30 Sep 2021
Development Finance Mortgage House
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In Australia, most lenders require you to have a deposit between 10 and 20% of the purchase price of your home. For example, if the home you want to buy costs $300,000, you’ll need to have a deposit of between $30,000 and $60,000. However, most lenders will want you to have a 20% deposit to avoid paying lenders mortgage insurance.Â
Even with this standard, how much deposit you need for your home loan depends on your lender and your situation. Some lenders will allow you to borrow 95% of your property’s value. In addition, if you are a first-time homebuyer, you may be able to get a grant from the government to count towards some of your deposit.Â
Saving for a deposit takes time. Therefore, it’s essential to know how much you need to realistically save and develop a plan to help you reach your goal. Here are some tips:
If you are in the process of saving for a deposit, the brokers at Mortgage House can help you determine how much money you need to set aside and save for your deposit. We can also help you apply for a low deposit and no deposit home loans with competitive interest rates.Â