How much deposit do I need to buy a house?

This is one of my frequently asked questions and it all depends on the lender. Most lenders now lend up to 90% of purchase price, there are still a couple that will go up to 95%. So you need the deposit for the lender PLUS the government stamp duty and transfer fees.

See example below:

Purchase Price: $350,000
Base Loan Amount at 95%: $332,500
Your contribution: $17,500
Government Stamp Duty etc: $16625
Lenders Mortgage Insurance: $12435 (#see below for more info#)
Total deposit required: $46560 **

The best thing to do when trying to work out how much of a deposit you will require to buy property is to give me a call, I can work it reasonably quickly based on purchase price.

In some instances, you may have family that can help and provide additional security so that a deposit may not be required. This is called a ‘family pledge’ loan and I’d be happy to discuss this in more detail.

** Please note: This amount does not include any lender or conveyancer fees which would be in addition. These figures are an example only and subject to change based on the borrower’s personal circumstances.

#Lenders Mortgage Insurance is an insurance that the bank takes out in what they deem higher risk lending, which is generally anything over 80% of purchase price. The insurance protects the bank but the premium is paid by you. For more information please go to: www.genworth.com.au