In Australia, the amount of deposit required for a first home loan can vary depending on a few factors, including the price of the property and your lender’s policies.
Lenders in Australia have required a deposit of at least 20% of the purchase price of the property. For example, if you’re buying a property that costs $500,000, you would need to save a deposit of at least $100,000. This 20% deposit is seen as a way for lenders to reduce their risk, as it means you’ll be borrowing less money and therefore have a smaller loan-to-value ratio (LVR). Additionally, if you have a smaller deposit, you may be required to pay lenders mortgage insurance (LMI). LMI is a one-time fee that is added to your home loan and is designed to protect the lender if you default on your loan.
Q: How much deposit is needed for the first home loan?
A: Here’s a breakdown of some of the deposit requirements for first home loans from major lenders in Australia:
- Commonwealth Bank: Minimum deposit of 5% for owner-occupiers, with LMI required for deposits less than 20%.
- Westpac: Minimum deposit of 5% for owner-occupiers, with LMI required for deposits less than 20%.
- ANZ: Minimum deposit of 5% for owner-occupiers, with LMI required for deposits less than 20%.
- NAB: Minimum deposit of 5% for owner-occupiers, with LMI required for deposits less than 20%.
It’s worth noting that these requirements can vary depending on the type of property you’re purchasing (e.g. new vs. established) and whether you’re buying as an owner-occupier or investor.
The amount of deposit needed for a first home loan in Australia can vary depending on a few factors, including the price of the property and your lender’s policies. While a 20% deposit is traditionally seen as the minimum requirement, many lenders now offer home loans with smaller deposit requirements.
