How much money will I need to save?

That will depend on where your are buying, the price of the property and the associate fees.

The larger the deposit the greater your borrowing power.

  • Demonstrating your ability to save, with a strong saving history, will improve your chances of a loan approval.
  • Having a large deposit, means you won’t need to borrow as much, which will reduce your repayments and save you from long term interest charges.
  • A larger deposit may increase the number of loan options available to you and put you in a stronger position to negotiate a lower interest rate.

It is recommended that you save at least 20% of the property value as your deposit amount. However in this economy most borrowers will struggle to save this amount of money, the bare minimum you will need as a deposit will be 10% of the property value.

Any property purchase with a loan of more than 80% of the property value, will attract Lenders Mortgage Insurance LMI.

You will also need to have additional 4 – 6 % of the property value in savings to cover loan application fees, conveyancing and Stamp Duty.

Calculate your deposit saving power.

Use our Savings Calculator to get a better understanding of your deposit saving power.

  1. Draw up a budget
  2. Set a realistic saving target and stick to it.
  3. Setup automatic payments into a separate high interest savings account.
  4. Work hard at being debt free. Pay off your credit cards and other loans.

For further information:

How do I improve my chances of a Home Loan application being approved?