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If you have started saving you can start to look at buying once you have around 5% of the purchase price.
If you have between 5% and 20% of the purchase price, you may need to pay what’s called Lenders Mortgage Insurance, which enables lenders to lend you a larger percentage of the purchase price. This can be included either in your upfront costs or in your loan repayments so that it’s spread out over the term of the loan.

If you have a deposit of over 20%, you can avoid the extra costs of Lenders Mortgage Insurance.

What if I don’t have a deposit?

If you don’t have a deposit, there are a number of options that can help you get your home sooner.

You may be able to use a guarantee from your parents (supported by a mortgage over their property, or a term deposit) as equity to assist you with your home purchase. These are generally referred to as family guarantees.

Another option is if you’re eligible for the First Home Buyers Grant and using that to help fund your deposit.

What other costs are there?

There are other up-front costs you should consider when you are doing your sums, including:

1. Conveyancing and legal costs (typically about $700)
2. Government fees including stamp duty
3. Title search and registration fees
4. Pest and building inspections (typically about $500)
5. Home building Insurance prior to settlement, and possibly contents insurance when you move in.

If you’d like to know more, please contact us for a FREE no obligation consultation on 03 8390 5855 or email