Ask yourself one simple question, ‘How quickly do I want to get into my first home?’ This will not only determine how much you need to save but also how long it will take you.
Next, we’ll take a look and show you what you can get for your deposit.
Can I buy a home with less than a 20% deposit?
A small deposit definitely allows you to purchase a home. Just keep in mind you’ll be liable for a Lenders’ Mortgage Insurance (LMI) premium (added on top of your home loan) if your deposit is under 20%. See if your eligible to purchase your first home with a deposit of as little as 5% with the first home loan deposit scheme.
What is LMI?
You need to pay Lenders’ Mortgage Insurance if your lending is above 80% of the purchase price. The insurance covers us if your circumstances change and you can’t make your repayments.
What if I have a 20% deposit (or more)?
If you’re a saving genius; having this deposit means you don’t pay LMI costs. This reduces your overall loan amount, builds equity sooner and saves you on interest charged over the life of the loan.
What is the First Home Owners Grant (FHOG)?
How does a boost in your savings sound? The First Home Owners Grant (FHOG) is a national scheme funded by the states and territories. It was established to offset the effect of GST on home ownership. But be mindful, that you need to be eligible to apply and the amount of the grant varies from every state and territory.