Feature article
Getting your money together: how much do you need?
Did you know you can buy a house with less than a 20% deposit?
AI summary
You may not need a 20% deposit to buy a home. Banks offer various options depending on your circumstances and the property type.
- 5% deposit: Possible with strict income caps and requires Lenders' Mortgage Insurance.
- 10% deposit: Often available for new builds, but may have higher interest rates.
- 20% deposit: Unlocks better rates and potential for cash back.
Understanding Loan-to-Value Ratios (LVRs) is crucial, and remember to budget for extra costs beyond the deposit.
1. A 5% deposit
2. A 10% deposit
3. A 30% deposit
Some complicated terms
Cash back
Loan-to-Value Ratios (LVRs)
Example 1: Buying a $675,000 house on your own
Example 2: Buying a $875,000 house with someone else
When do you need the deposit?
Buying a new build
Buying an existing home
Other things to consider when paying your deposit
Before going to auction, you shouldâŠ
Make sure you leave a little money left over!
Financial Disclaimer
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