How Much Should I Save for a Home Loan Deposit?
People who have begun to save up and research the different types of home loans available often have the same question - how much money do I need for a deposit?
A general rule of five per cent of the purchase price is a good start for owner-occupied dwellings, while investors are encouraged to have between five and ten per cent of the purchase price.
While targeting a specific amount to save is a great strategy to maintain your motivation and keep your sights set on your goal, it is important to remember there is not a one-size-fits-all deposit amount that applies to real estate seekers around the country.
Factors such as home size, location, local market and personal financial situation all affect the terms of loan agreements - and there are ways to negotiate for your specific needs.
Minimum deposits are often required to be accompanied by proof of genuine savings, but there are some cases that rental payments are considered in the absence of savings.
A mortgage broker can best explain the various options for home loans that are most likely to suit to your personal situation.
There are various options for people looking to make the transition from renter to homeowner.
To get more detailed information on your situation, talk to a Loan Market mortgage broker today.