How Big Should Your Deposit For A Home Loan Be?
One of the main questions asked by first home buyers is about how much of a deposit they need to save up before they can apply for a home loan.
The answer depends on a number of factors – including whether or not the property being purchased will be lived in by the owner or as an investment property.
The value of the property is also factored in, so careful research into the average house prices of properties in your search area can go a long way towards helping you sort out your finances and start a savings budget.
When you do decide to start saving, it's useful to remember that the benchmark minimum deposit for most lenders is at least five per cent of the purchase price of the property if you're going to be an owner-occupier.
This grows to between five and ten per cent if the property is planned to be used as an investment opportunity.
However, these figures tend to vary between lenders – having a chat with a mortgage broker may help to illuminate your specific situation.
To get more detailed information on your situation, talk to a Loan Market mortgage broker today.Tags: first home buyers, mortgage broker