How Much Deposit Do I Need?
The deposit you will need depends on a variety factors: from the type of property you intend to purchase, your personal circumstances or the type of home loan you're after. For an owner occupier purchase, you will typically require 5% of the property’s value as a deposit.
A Deposit For Your Specific Situation
If you would like to talk to us confidentially about your loan deposit or the home loan options that are in your best interest, call us on 13 LOAN (or +61 2 9249 3739 for international callers) or email us the form below and we will return your contact within 2 business hours.
No Deposit Home Loans
If you have good cash flow (a good income) but low equity (deposit), you may want to consider getting a no deposit home loan. These loans allow you to borrow up to 100% of the purchase price and are available for both new and established housing, either owner occupied or investment.
'No Deposit' however relates only to the mortgage. You will still have to pay for your lender's mortgage insurance (LMI), solicitor's fees, property stamp duty and your moving costs.
Lender's Mortgage Insurance
If you have less than 20% deposit, you will almost certainly have to pay Lender's Mortgage Insurance (LMI). There are however some lenders who will allow a 15% deposit without charging you LMI and you should talk to your mortgage broker about these options.
Lenders mortgage insurance is a one-off payment by the borrower to the lender (or lender's insurer) to 'insure' a home loan. LMI insures the lender for a situation where if you were sold up because of defaults, the difference between what your property is sold for and the amount still owing is covered. Be aware that lender's mortgage insurance does not provide any protection to borrowers. Lender's Mortgage Insurance insures the lender, not the borrower.
More information or help
For confidential assistance with your home loan or to talk to your local mortgage broker, call us at any time on 13 LOAN or call our direct line on +61 2 9249 3739.
|
