What is the Minimum Amount for a Home Loan Deposit?
There are a lot of Australians out there biding their time until they can get into the property market.
Many are waiting to save up to that magic number that will be enough to put a down payment towards their dream home.
For this reason, ‘how much do I need for a deposit?’ is one of the most commonly asked questions posed to mortgage brokers and lenders alike.
Of course the answer usually varies from person to person, depending on the type of property you are after, the area you wish to live and the surrounding market.
Personal circumstances such as income level and expenses may also play a role in the size of deposit you will need to secure a home.
However, there are a few common factors that apply to almost everyone that applies for a home loan.
Most often, owner occupier borrowers will require at least five per cent of the purchase price, while investor borrowers usually need to put a down payment of between five and ten per cent of the total amount.
At least a small portion of that will need to come from genuine savings, while the rest can be made up of various sources such as monetary gifts, a First Home Owners Grant (FHOG) and a First Home Savings Account.
To get more detailed information on your situation, talk to a Loan Market mortgage broker today.