How Much Deposit Do I Need?

Often the purchase of a first home whether to live in or for pure investment purposes can be a rather daunting experience, normally the questions outweigh any certainty or knowledge. 

Often the first question is how much money do I need for a deposit?

A simple question has a multitude of answers.  Different lenders have different lending policies, so not all lenders are equal in regards to the amount of deposit they require.  Purchasing to live in or purchasing for investment purposes may also cause a difference in deposit required.

The biggest mistake people make is that they save madly for their deposit but forget or are simply unaware that there are costs involved in purchasing a property.  For example if you have madly saved up 5% of the purchase price to use as a deposit, do you have any further funds to cover the stamp duty, solicitors fees and costs associated with purchasing the property?

There may be options available with as little as a 5% deposit but to get the most accurate assessment of what deposit is required it is best to look at your whole financial picture and property purchasing goals.

As a first home buyer you may be eligible for government grants or concessions.  If you are already an existing property owner and looking to purchase a second property there maybe options for you to use your existing properties equity as deposit.

As a guide a 5% to 20% deposit is what you would aim for, but don’t forget the costs of purchasing the property on top of that.

Let me help calm your nerves by explaining the home loan process to you and explore your home loan options with you.  I will help you understand what is involved in the whole process of purchasing, help explore your home loan options in today’s competitive mortgage market and be your reference guide to any questions or hesitations you may hold.  After an accurate look at your situation I can then indicate the appropriate deposit you should be aiming to have to achieve your desired goal in the case you don’t have one already saved. Please don’t hesitate to contact me, Cherie on 9871 2969, I’d love to help you.

Posted in: Home loans

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