How much do you need to save for a deposit?

Are you ready to embark on the exciting journey of homeownership? Finding the perfect place to call home is a thrilling adventure. One crucial aspect of this journey is understanding the ins and outs of the home loan deposit. Let's delve into the key factors that will help you’ll need to know.

The Golden Rule of Deposits:

When it comes to securing a home loan in Australia, the golden rule is the deposit. Most lenders typically expect a deposit ranging from 5% to 20% of the property's purchase price. But why shoot for 20%? Well, crossing this threshold often comes with a significant perks – avoiding the dreaded Lenders Mortgage Insurance (LMI). LMI is an additional cost designed to protect the lender, and steering clear of it can save you a tidy sum. From Thousands to Tens of Thousands.
Your Interest rate will be significantly lower also. Saving you hundreds of dollars in interest cost each month!

First Home Buyer Goodies:

If you're stepping into the property market for the first time, there's good news. Various Australian states and territories offer first home buyer grants and incentives. These can be game-changers, providing a financial boost to help you make that initial leap onto the property ladder. Be sure to check with local government authorities for the latest offerings and eligibility criteria in your area.
These can range from grants to complete stamp duty waivers!

Navigating the Low Deposit Landscape:

For those with a smaller nest egg, fear not. There are tailored solutions available, such as low deposit home loans. While these options may come with higher interest rates or specific conditions, they open doors for aspiring homeowners with limited upfront funds. But make sure you don’t over commit and use the low deposit as a way to take out a loan you really can’t afford.

If you want to learn more listen to the our podcast episode on ‘how much you really need to save to purchase a house.’ listen now:

Remember, the world of real estate is dynamic, and regulations may evolve. Connect with mortgage brokers or financial advisors to stay on top of the latest developments. Your dream of home ownerships awaits, and with the right knowledge, you're well-equipped to turn the key to a new chapter of your life. Now go get it!