Deposit required
Size of your deposit
The ideal savings goal for a house deposit is at least 20% plus enough to cover costs
Some lenders only require a 5% deposit, a smaller deposit means a larger loan, and you will have to pay lenders mortgage insurance (LMI)
In WA we have Keystart, with a minimum 2% deposit option (certain restrictions and criteria apply)
You do not have to be a first home buyer for Keystart – no LMI applies
A larger deposit also shows the lender you’re a good saver and able to manage your finances, this can increase your chances of getting approved for a loan
First home buyers can apply for the WA grant and receive a $10,000 grant (new builds only – not established homes) towards your deposit
Remember all applicants must be first home buyers to be eligible for FHB grants
Start saving for your house deposit
Saving for a house deposit does take time and its important to be realistic about how long
The amount of time it takes will depend on how much houses cost where you want to buy
The home loan lenders want to see that you have planned and saved your deposit yourself
Deposits given to the land developer or builder will need bank account evidence they are true savings
Where did the deposit come from
Having a lump sum of money sitting in your savings account is not enough to satisfy banks your a good saver
Lenders require clear evidence of genuine savings, an account showing your savings steadily growing
If you apply for a personal loan or credit card and put the funds into a savings account months before, this will not be considered genuine savings
Given a gifted deposit from The Bank of Mum and Dad this will require evidence there are no strings attached
A gift letter will be required, stating the funds have been handed over unconditionally and without expectation of repayment
Sometimes parents consider being a guarantor for their child’s first home if they only have a small deposit
To be a guarantor, parents use equity in their home as security for your home loan
Security is normally 20% of the proposed properties value and this will avoid you paying LMI on the loan
Let's have a chat
I would love to hear from you.
Here's how you can reach Glen . . .
By submitting this form I am accepting of the Terms and Conditions & Privacy Policy
I am here to work with you, to get the best outcome
1. Understand your goals
I will listen and take the time to understand your unique position, your needs and requirements in a loan
2. Provide you with options
I will research lenders comparing only suitable loan options to your circumstances and best interests
3. I am working for you
After you have selected your preferred loan I will do all the groundwork to get it lodged, approved and settled
4. Happy days
I will keep touch in touch and make sure the loan still suits your future circumstance, and try to save you money along the way
Hundred's of loan options in one place
We offer you choice
