This varies according to the type of loan you are taking out, but in general you should aim to save a deposit of between 10 and 20 per cent of the purchase price.
- borrow@hunterlending.com.au
- 02 6541 5626
Frequently Asked Questions
FAQ’s
How much deposit do I need to buy my first home?
What are deposit bonds?
Deposit bonds act as a substitute for the cash deposit between signing a contract and settlement of the property. They are issued by insurance companies for a fee. At settlement, the purchaser is required to pay the full purchase price including the deposit.
How much can I borrow?
This depends on factors such as your income and deposit, but many lenders require a maximum of 90 per cent loan-to-valuation ratio (LVR), which means that you can borrow up to 90 per cent of the purchase price, but you will need to supply evidence you have saved at least five per cent of the value of the property (genuine savings).
What about the First Home Owner Grant?
This government assistance program provides you with a one-off payment to use toward the deposit for your first home. In NSW this scheme currently applies to new homes.