One of the most common questions we get asked is ‘What is the minimum deposit required for a first home buyer?’. For most first home buyers it is the first step towards getting a clear plan in place towards home ownership.
Unfortunately there’s no easy one size fits all answer to this question.
There are a number of costs that need to be factored in when calculating minimum deposit requirements. These potentially include bank fees, mortgage insurance, settlement charges and government fees.
When purchasing above $430,000 stamp duty costs need to be considered requiring more precise calculations. However if you’re purchasing an established property for under $430,000 as a rule of thumb you can use 5% of the purchase price as a savings target.
Please keep in mind this is specific to West Australian properties as stamp duty and first home buyer concessions vary from state to state.
##Factors affecting Deposit Requirements
Some factors that may involve you requiring less of a deposit include:
Some factors that may involve you requiring a larger deposit include:
If you have an upper price range in mind as far as property price goes you can set yourself a clear savings target which gives you a long-term goal to focus on.
If you’re interested in finding out the minimum deposit required for a home loan in your situation please get in contact with us about our obligation free mortgage broker service.