How Much Deposit Do I Need to Buy a House?
Updated: May 19
Buying a home can reduce your annual taxes. Also, take into account that your property value can increase.
It can take some time to save enough money to buy property, but fortunately, you do not need a huge deposit to secure a home. Small stakes can offset the stress of saving a significant amount.
How Is the Deposit Calculated?
The deposit to buy a house is between 5% to 20% of the home's asking price. Banks have the lowest stake and can therefore accept at least 5% of the asking price.
However, the deposit you will pay will depend on the housing market and your financial circumstances. It is beneficial to engage with multiple sellers to know their minimum deposit.
If you can pay the lowest deposit, purchase the house immediately. Do not wait to save more money since the house prices can increase in the interim.
Other Costs to Include in Your Budget
There are other upfront costs you need to consider before buying a home:
Council and utility rates
Lenders Mortgage Insurance (LMI)
Loan application fee
Mortgage registration fee
Building and pest inspection
Conveyancing and legal fees
Schemes from the Government
The government can offer assistance in the following ways.
1. First Home Loan Deposit Scheme
If you are a first-time buyer, this scheme guarantees 15% of the asking price of a new home. You can even purchase a new home at approximately 5% without taking out Lenders Mortgage Insurance.
2. First Home Super Saver Scheme
If you are a first-time buyer, this scheme allows you to access the additional super payments to help you buy a home. However, you will still need to make extra voluntary contributions to your First Home Super Saver Scheme.
3. First Home Owners Grant
The First Home Owners Grant aims to discount the first-time buyer's amount to pay for the home. This grant is dependent on whether you are buying an established or new home or if the buyer buys a home in a regional or metro area.
Need Assistance with Buying Your First Property?
It is beneficial to buy a home as soon as possible to mitigate factors of rising home prices.
Talk to our experts at Advantas Property Group to help you secure the lowest deposit and speed up the buying process.