Buying a home or a property may imply a deposit. You may come across home loans that require no deposit at all, but their approval criteria are known to be tough.
Therefore, you are left with only one thing to do – namely, to save a deposit so that you will be able to purchase a home or a property.
Keep in mind that saving for a deposit can take years. You shouldn’t quit after several months if you really want to purchase that property – just embrace financial discipline and start building up your deposit.
Obviously, before you start saving a deposit, you must know how much you should save – or when you should stop saving. Property usually comes with a deposit 0f 20% of the total price.
Some lenders may accept deposits as low as 10% or 5% as well. However, a smaller deposit means that you will have to borrow more money and pay more interest. On top of that, a deposit lower than 20% may require you to pay LMI – Lenders Mortgage Insurance.
For example, a property valued at $500,000 will require you to save a deposit of $100,000 (20%). If you find a lender that accepts a deposit of 10%, you’ll need to save only $50,000 – but the possible LMI and other costs such as stamp duty could bring this sum quite close to $100,000 – get in touch with our office who will be more than happy to answer questions and workshop scenarios with you.
Naturally, it doesn’t matter what percentage of the property’s price you have to save as deposit. It all boils down to how serious you are about saving money for purchasing a property.
Here is what you should do to optimise saving:
Examine Your Spending
Know exactly how much you spend each month and see whether you could cut some things off or not. Use an app or a written record for this.
Setting a Budget
It is recommended that you set a specific budget for every month’s spending; naturally, this budget should allow you to efficiently save a deposit.
Pay Off Urgent Debts
Obviously, you should get your debt under control as soon as possible as it will affect your saving power. Take care of high-interest debt first.
Maximise Savings
To maximise your savings, you could also put a part of them in a term deposit or build your property deposit with a high-interest savings account.
Naturally, spending money and saving less may not always help you as much as you need. You may need the help of other entities or people in order to build up a deposit.
Clearly, the most common deposit help that you can get implies asking your family for help.
Parental Guarantor
Your parents may agree to guarantee for a part of your deposit, thus avoiding LMI and giving you the opportunity to purchase property without a deposit at all!
Cash Gift
Your parents or relatives can also provide you with a cash gift to empower your deposit. However, keep in mind that there are some rules that you have to respect when relying on this way of deposit help.
Living with Your Parents
There’s not too much to say about this; just imagine saving a deposit without having to worry about rent every month!
First Homeowner Grant
Depending on the state that you live in, you may be eligible for a cash grant for first time home buyers. Obviously, you can use this grant to build up your deposit.
Saving a deposit can be quite hard – but remember that this is the first step towards purchasing and then living in your dream home. In short, you should start saving.
But, on top of that, make sure to look into the things that can help you with your deposit as well. If you have any questions or just need more information about deposits, home loans, and so on, feel free to get in touch with us.
We will answer your questions and, if need be, guide you through the process of finding the best possible lender for your needs. Contact us today – we are more than glad to help you! Contact us on on 02 9121 6247 or submit your scenario online.
Contact us on 02 8530 1107 or Submit your scenario online
We meet for a consultation, obtain your supporting documents and proceed to structure and package your application for approval knowing exactly what the banks want to see. We also monitor your home loan post approval ensuring you’re home loan suits you and your financial position
We get paid a commission from our lenders as a result of introducing your business to them. Subsequently, our service is at no cost to you. Our commission does not affect your interest rate whatsoever, if anything, we’re in a position to get you a lower interest rate than the general public due to our relationships with our banks
With our many years experience in the industry, we’ve been exposed to both easy and complex loan scenarios. Each loan we process gets presented to over sixty financial institutions, ensuring we have explored all options possible and are able to provide a solution
Whether you’re a first home buyer looking at entering the market or an existing home owner looking at ways to save money on your home loan, we have you covered. We’ve put hundreds of hours of research into these guides to ensure you end up ahead, and it’s completely on the house.
When dealing with a home loan, you will most likely come across the Loan to Value Ratio term. Obviously, everyone who wants to apply for a home loan should consider this term and what it implies, as it affects your borrowing power.
Many home buyers usually assume that they have a formal home loan approval when, in fact, they haven’t been granted any. The risk that presents itself here is that you can make an unconditional offer in order to buy a property and then later discover that you haven’t been approved a home loan.
If you own property and are relying on your savings to buy a property, then we advise you to stop right now and keep on reading – especially if you didn’t take equity into account.
As you gain equity in your home, you can use it in order to build your property portfolio without having to save money. In short, it is a smart way that you can rely on to buy an investment property and through which you can avoid endangering your financial situation.
Before buying or selling a house, you have to know the value it has on the current market. Naturally, you could value your property yourself – but you may take more things into account when doing so, such as emotional value. Thus, you can come up with a higher value.
The odds are that you’ve stumbled across the term lender’s mortgage insurance and you’re wondering what it stands for. Well, you’ve come to the right place. This article will clarify this term, so that you can understand what it is, the concept behind it and the approximate costs. Let’s get started!
Nowadays, most people usually have to buy first and sell second – when it comes to the property market. However, by doing so they risk paying two mortgages.
In this case, they will naturally head towards the other option, namely selling first and buying second. Still, this may come with certain issues, as they will most likely have to rush their purchase, plan two moving days, and possibly spend a lot of money on rent.
Trustindex verifies that the original source of the review is Google. 
Trustindex verifies that the original source of the review is Google. 
Trustindex verifies that the original source of the review is Google. 
Trustindex verifies that the original source of the review is Google. 
Trustindex verifies that the original source of the review is Google. 
Trustindex verifies that the original source of the review is Google. 
Trustindex verifies that the original source of the review is Google. 
Trustindex verifies that the original source of the review is Google. 
Trustindex verifies that the original source of the review is Google. 
Trustindex verifies that the original source of the review is Google. 
What you need to know before you purchase your first property and how to fast track it. We have designed this guide to get you up to date with everything you need to know about being a first home buyer. Whether you have a short term goal of purchasing your first property or are thinking about it sometime later down the track, this guide will cover important essential aspects of this exciting journey.
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The best way to take control of your finances is to use a budget planner. This is a simple tool that helps you understand the money going in and out of your household. With our Highline Lending Budget Planner, we’ve got you covered. This handy tool allows you to log and track your goals, track your savings, track your debt and expenses and keep a monthly record for an end of year evaluation.
