What is the lowest deposit for a mortgage?
Not everyone has the means to save 20% of the value of a home, especially since the housing market in Australia is on fire! Homes are worth well over $500,000, meaning a 20% deposit on the average home is $100,000. If you do not have $100,000 in your bank, you are still in luck! There are options.
For example, some banks and lenders offer low deposit premiums. What are low deposit premiums? A low deposit premium is a one-off, non-refundable, non-transferable bank fee that replaces the bulk of a missing deposit. This fee is charged to interested borrowers that do not have the full 20%. You do have to put something down though. There is technically no lowest deposit for a mortgage, though. Every mortgage lender has its own rules and wants when it comes to low deposit loans.
Some banks and lenders offer mortgages and home loans to those with only a 5% deposit, but additional fees are required. If you are interested in owning your own home, but you do not have the typical 20%, don’t worry! Contact our Mortgage House lenders for more information. They can walk you through the process. If you are unsure of your borrowing budget, check out our online free mortgage calculator.
Low Deposit Premium Conclusion
All in all, a low deposit premium is a fee added to mortgage loans that pay less than a 20% deposit. Lenders offer unique programs and low deposit programs as low as 5%.