How much of a deposit do I really need?
Nowadays, lending criteria from banks is stricter, and most lenders are generally willing to finance up to 95% (LVR) of a property’s value inclusive of any mortgage insurance (LMI) payable.
As a rule, we recommend our clients save 10% of the property’s value, as this will allow for the 5% deposit required, mortgage insurance payable and any associated purchasing fees payable (stamp duty etc.).
However, the recommended 10% can vary if you are looking to purchase an investment property and/or if your purchase is eligible for the First Home Owners Grant (FHOG). Ultimately, the bigger your deposit the more likely you are to obtain a favorable decision from the lender.
As a rule, we recommend our clients save 10% of the property’s value, as this will allow for the 5% deposit required, mortgage insurance payable and any associated purchasing fees payable (stamp duty etc.).
However, the recommended 10% can vary if you are looking to purchase an investment property and/or if your purchase is eligible for the First Home Owners Grant (FHOG). Ultimately, the bigger your deposit the more likely you are to obtain a favorable decision from the lender.
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Home Loan variable interest rate of 5.89% per annum is as at 3 October 2023 and is subject to borrower meeting the lender's criteria, terms and conditions and loan to value ratio ('LVR') requirements. This rate of 5.89% per annum is based on a variable rate home loan of greater than $50,000 and not exceeding a LVR of 80%. The comparison rate of 5.91% per annum is as at 3 October 2023 and is based on a secured loan of $150,000 over a term of 25 years. This comparison rate is true only for the example or examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Lending criteria, fees and conditions apply. Rates, fees and conditions are indicative and subject to change without notice. Loan Studio Pty Ltd (ABN 97 146 606 135) is an authorised credit representative (390870) of Port Group Pty Ltd (Australian Credit Licence Number 389460.
