How Much Deposit Do I Need For A Home Loan?
The how much deposit do I need for a home loan question has to be one of the most frequently asked by first home buyers in home finance. Minimum home loan deposits vary between banks and lenders. As a first home buyer it’s best to save for a bigger home loan deposit and a savings plan.
Each bank and lender has its own lending criteria and rules around minimum deposits. Talking to an expert mortgage broker will put you at an advantage by saving you the legwork going from bank to bank you will know exactly which lender and product will suit your home finance needs.
Most banks and lenders will require a minimum deposit of 5 per cent of the value of the property you are purchasing, before they will approve you for a home loan. Depending on the lender and your individual situation, you may be able to fund your deposit from a range of sources, including genuine savings, monetary gifts, inheritances and first home owner incentives. However, most lenders will require at least a portion of your deposit to come from genuine savings.
If you don’t have the deposit required, you may be able to make use of family equity, also known as a limited guarantor loan. The most common form of family equity is where a family member, offers their existing property as security for a portion of the home loan, generally around 20 per cent.
For more information on how much home loan deposit you will need for your home loan talk to me today on 0402 235 001 or fill in the enquiry form to talk to an expert mortgage broker in Pattersonlakes and Frankston.