Aim High With Your Deposit Savings Target
If there’s one thing that all first home buyers want to know more than anything else, it’s how much deposit do I need for a home loan.
Of course it’s natural to want to know how much you need to save before you can be in a position to actually make an offer on a house.
The general rule says you will need to provide at least five per cent of the purchase price as a deposit.
However, the amount that you are likely to be able to borrow will depend on a range of different factors.
These include your income, current debts, credit rating and savings history.
However, a deposit will play a big part in their decision, which is why it is a great idea to save as much as you can towards one.
And here’s another motivation to set your target higher than what you consider the minimum for a home loan deposit - the more you can offer as a down payment on a mortgage, the less you’ll end up paying in interest. Win win!
To get more detailed information on your situation, talk to a Loan Market mortgage broker today.