How Much of a Deposit Should You Put on Home Loans?
Anyone entering into the property game always has to ask themselves the same question - how much do I save up for a deposit on my dream property?
Once you know the answer to this, you can draw up a savings plan and start putting your pennies away towards your property goals.
So, how much of the purchase price should you ideally save before starting down the real estate road?
Most lenders would recommend that at least five per cent of the overall purchase price be put forward as an initial deposit for most residential properties by those planning on owning and occupying the property. Investors may deposit as much as 10 per cent or more.
Larger deposits usually place the buyer in a better position in terms of repayment as well as potentially influencing the interest rate from the lender.
Whether you go for a high deposit or the bare minimum, the strategy must work best for your own personal situation.
A mortgage broker will be able to advise you, whether it’s your first or fifteenth property, what kind of deposit would be best suit to your needs.
To get more detailed information on your situation, talk to a Loan Market mortgage broker today.