How much deposit do I need?
In Australia, the typical deposit required to buy a house varies depending on the type of loan and lender requirements:
Minimum Deposit Requirements:
- First Home Buyer deposits: Aim for 5% of the purchase price. We have options and can also potentially get LMI waived for you at the same time.
- Home Guarantee Scheme: Government schemes like the First Home Guarantee can help you secure a property with a deposit as low as 2% (Family Home Guarantee) without paying LMI.
- Standard Deposit: 15% of the property value is ideal to avoid paying Lenders Mortgage Insurance (LMI).
Example Breakdown:
If a property is worth $600,000:
- 5% deposit = $30,000
Other Costs to Consider:
- Stamp duty (may be waived for first-home buyers in some states)
- Legal fees
- Building inspections
- Moving expenses