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.
Calculate your deposit saving power.
Use our Savings Calculator to get a better understanding of your deposit saving power.
- Draw up a budget
- Set a realistic saving target and stick to it.
- Setup automatic payments into a separate high interest savings account.
- Work hard at being debt free. Pay off your credit cards and other loans.
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