On the back of home loan deposits in Australia dropping to record lows, we’re asking the question, ‘is a low home loan deposit good or bad’? We realise most of life happens somewhere between the black and white, so we’ll give you the facts, then let you decide.
The past 6 months
You may have noticed that minimum deposits for home loans are getting, well, more minimal. In the past 6 months alone, some lenders have dropped their minimum deposit amount to as low as 5%.
It would appear that the big four banks are starting to lose a lot more business to the non-major lenders.
With the smaller banks having reported multi-billion-dollar mortgage book growth. These figures have seen three of the big four banks outperformed according to the latest data from The Australian Prudential Regulation Authority (APRA).