RBA Cash Rate: 4.35% · 1AUD = 0.67 USD · Inflation: 4.1%  
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Home Loan Variable: 5.88% (6.07%*) • Home Loan Fixed: 5.54% (5.95%*) • Fixed: 5.54% (5.95%*) • Variable: 5.88% (6.07%*) • Investment IO: 5.84% (7.27%*) • Investment PI: 5.84% (6.19%*)

How Much Deposit is Required For My First Home?

This is a tough question to address without an understanding of your circumstances, For a first home a deposit of anywhere between 5% and 20% will be required, with the lower rate predicated upon Government assistance or grants.

Generally speaking, a deposit of 20% of the value of the property will save you from incurring additional fees such as Lenders Mortgage Insurance.

Some lenders will let you borrow up to 95% of the purchase price and then permit you borrow the cost of the Lenders Mortgage Insurance on top of that.

If you don’t have a deposit, you may borrow up to 100% of the property’s purchase price, in two ways:

  • Family Pledge. The Pledge allows a family member offers their property as security for you to purchase your property.
  • 100% House and Land packages. In some cases you may be able to borrow up to 100% of the price of the brand new home and land.

Related FAQs:

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What is a Risk Fee?

A Risk Fee is a once-off charge payable by you when the amount of money you borrow for the purchase of a home or asset if higher than that lender’s acceptable LVR. For a home loan, this is usually 80% of the value of the home (80% LVR) …

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No Deposit Home Loans

Most lenders have moved away from the no-deposit home loan, although there are a few products available with very strict criteria. Excluding the no-deposit opportunities made available to the medial industry and other …

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