How much deposit do I need for a home loan?
Quick answer: the more the better, but as a rule of thumb the minimum is 5%, seen as genuine savings which means it has been an increasing balance over time or has been held in your account for at least three months.
By ROB WALMSLEY
The more deposit, the more you will save – most banks now offer discount rates on lower loan-to-value ratio (LVR) loans, so a low LVR loan not only saves lots on mortgage insurance premiums, but in many cases will also mean a better interest rate.
Along with your deposit, you will also have other costs like stamp duty, legal costs, pest and building reports. These costs vary greatly depending on whether you are building or buying an established property, and what state you are in.
For more detailed information on deposits, give me a call on 0402 203 303 or email me at rob@rwfs.com.au.
“Quick answer: the more the better, but as a rule of thumb the minimum is 5%, seen as genuine savings which means it has been an increasing balance over time or has been held in your account for at least three months.”
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