September 24, 2015
Buying my first owner occupied home
A 5% deposit is generally required. The term used for this is “Genuine Savings” – meaning, the deposit is to be saved over a minimum 3mth period held in your account. Some lenders will waive the “Genuine Savings” requirement if you can supply a suitable rental payment record that shows a consistent ability to maintain a commitment. If you were to apply with one of those lenders that offer this exception, you will still need 5% cash deposit, but it could be in the form of a gift, first home owners grant, or cash held in a term deposit etc.
Most mortgage lenders will also require you to cover the 5% deposit plus any fees in establishing the loan eg: Stamp Duty, settlement fees, mortgage registration fees etc
This is just the surface, as there are so many options available, hence buying a house can be a confusing and intimidating time.
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