how much deposit do I need
A deposit of 20% or more will help you avoid paying Lender’s Mortgage Insurance (LMI), however you can still get a home loan with pretty much no deposit at all. The total amount of your deposit will affect the types of loans and lenders that are available to you, but there are options to cover every situation.
maximise your deposit
Your Loan Market mortgage broker will help you to maximise your deposit and make securing a home or investment loan at a competitive interest rate easier than you think. Fill in the form for a deposit make-over or call us at any time on 13 LOAN or direct on +61 2 9249 3739.
Along with your deposit, you will also have to pay the standard fees and charges associated with your home purchase. If you don’t have all of the additional funds for fees and taxes, there are ways to also cover some or all of the fees and your mortgage broker should be able to show you your options when you are sorting out your home loan.
How Much Can I Borrow?
How much you can borrow (your borrowing capacity) will depend on many different factors, including but not limited to: income, credit history, income history and employment history. For a guide to how much you can borrow, check out our calculators but before hitting the open home circuit, it is worth obtaining a home loan pre-approval so you know exactly how much you can borrow.
Up to 95% Home Loans
Most lenders will now allow you to borrow up to 95% of the property value at their regular interest rate terms, provided you can prove you can service the loan. Some may also allow you to capitalise your Lenders Mortgage Insurance costs, effectively taking your borrowings to around 97%.
100% or “no deposit” Home Loans
100% loans are ideal for those who have a good income but have been unable to save a deposit, for whatever reason. This type of loan allows you to borrow 100% of the purchase price of the property, provided you are able to cover associated purchase costs and service the loan repayments. They may have slightly tougher approval rules, and you may also be a bit more limited in your choice of loans.
First Home Owners Grants
If you are a first home buyer and are eligible for the grant you may be able to use some or all of your First Home Owners Grant as part of your deposit. Your local mortgage broker can provide further information on the grant, and assist you with your application.
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First Home Saver accounts
The federal government introduced First Home Saver Accounts in 2008. The accounts, offered in addition to the First Home Owners’ Grant and any state-based first home buyer grants and concessions, provides deposit saving support for first home buyers through a number of financial institutions.
Fees and charges
There are a range of fees and charges you may need to provide funds for when purchasing property. These include:
Bank/Lender fees:
- Loan Application Fee
- Valuations
- Conveyancing/Solicitors Fees
- Stamp Duty
- Lenders Mortgage Insurance
In some cases, the above fees may be covered as part of your home loan application. Check with your mortgage broker which fees you will need to cover.
Other related fees:
- Building and Pest Inspections
- Insurance – building, contents, landlord protection, transit etc.
You can find a detailed description of the fees and charges you are likely to encounter in our comprehensive Fees and Charges section.
For more information on how much deposit
If you have a savings goal or home in sight, it pays to talk to a mortgage broker who understands both the first home saver scheme and can help you understand what your home loan options are as well as set up your savings scheme with the right bank for you. Click on the link or call at any time on 13LOAN (International direct line: +61 2 9018 8417) and we will have a broker in contact with you within 2 business hours.
