Are you better off saving more then the minimum deposit?
How much of a deposit do I need to buy my first home?
While it does vary from lender to lender, generally speaking, when buying your first home the minimum deposit (% of the property purchase price) is:
- 5% if you are planning to buy as an owner occupier (e.g. live in your first home)
- 10% if you are planning to buy the property as an investor
- 20% if you do not want to pay the hefty LMI (Lenders Mortgage Insurance) premium
Disclaimer: Please note our website, including this article, is in no shape or form designed to replace the need to obtain professional advice from experts such as Financial Planners. All information on our website is general & factual in nature, and should not be relied upon. In particular, we wish to remind you that the information in this article is not designed to replace advice. We always recommend you speak to a licensed professional. Please visit our website’s Terms & Conditions for more information. To speak to a licensed Mortgage Broker please click here.
What is the average first home buyer loan?
According to the Australian Bureau of Statistics (ABS), the average first home buyer loan in the month of June 2016 was:
- Tasmania – $232,000
- Northern Territory – $321,000
- South Australia – $279,000
- Queensland – $315,000
- Western Australia – $327,000
- ACT – $362,000
- Victoria – $363,000
- NSW – $427,000
*rounded to the nearest $1,000. To see the ABS report please click here.
Don’t be afraid to save more than the minimum deposit
In a recent interview, FHBA co-founder Daniel Cohen told Domain there are many benefits of saving more then the minimum deposit required. Some of these benefits include:
- More lenders to choose from
- Better negotiating power with lenders
- You can consider more home (suburb) locations
- You can consider buying an older place and renovating it
- You could potentially buy a bigger place that your growing family will grow into
To read the full interview / story please visit Domain.
Who will lend to me for my first home?
To find out what home loans you could be eligible for please visit FHBA Mortgages and ask for a call back.
First Home Buyers Australia