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%.

There’s been a lot of talk lately about allowing first homebuyers to purchase property using their super. And while legislation on the issue hasn’t passed yet, it’s worth looking into how potential changes will make life easier (or possibly harder) for first homebuyers.

The pros If first homebuyers can access their super to purchase property, they’ll be able to buy sooner.This makes property more accessibility to people who may not ordinarily have the ability to enter the property market.Australian Senator, Nick Xenophon, said Canada has a similar initiative, which has made housing more affordable for Canadians.Xenophon said the scheme lets first homebuyers in Canada use up to $25,000 in super. He believes Australia could benefit from a similar approach. The cons If young people can access funds from their super, they have less to rely on when they retire.This will impact the quality of life of retirees in the future.High super contributions may also be required to offset retirement income that is used to purchase property.As a result, the cost of living in Australia could become much higher. For more insights about saving on your home loan, ask a Capita mortgage broker to compare rates and terms from different lenders.

If you’re saving for a deposit, or simply want to save money to meet your mortgage repayments, it pays to think outside the box.

Here are our top 3 tips for saving money, so you can pay off your mortgage or get that deposit sooner.