If you’re in the market for a property, you need to know how much to save for a deposit. Today, we’re delving into what you need to know, so you can budget and prepare yourself to achieve your property goals.
How much do I need for a deposit?
According to finder.com.au a home loan deposit is typically 20% of the agreed sale price.
As an investor, you generally have to pay more, so be prepared to pay as much as 30% of the property price.
The percentages listed above are minimum deposit amounts.
If a 20% deposit cannot be made, 10% or more is the recommended minimum.
The higher the deposit amount, the less you will pay over the life of your home loan. (So ideally, a higher deposit is better.)
The minimum deposit amount between lenders will vary, so check with your mortgage broker if you’re unsure.
What if my deposit is less than 20%?
Most lenders require borrowers to take out Lenders Mortgage Insurance if their deposit is under 20% of the agreed sale amount.