If this is what you are considering, then a deposit is something you are going to need.

Banks require a minimum of 5% deposit as genuine savings, which is money you have saved or has been in your bank account for a minimum of three months. It can be from the sale of an asset like a car or boat; it just needs to be in your account for three months. If you have shares and can show that you have held them for the same period or longer, these are considered an investment and therefore savings.

Another alternative is a Family Guarantee. This is where a parent or close family member allows you to use their property as additional security. This is usually set up as a 20% loan over the family property, and 80% over the new home you are buying. Whilst this gives access to funds for the full purchase price, you may still have to come up with money to cover stamp duty and associated costs depending on what you buy and which bank you go with.

For more information on your options, call me on 0402 203 303 or email me at rob@rwfs.com.au.