All Topics / Finance / Minimum Deposit Required

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  • Profile photo of BrizzaBrizza
    Participant
    @brizza
    Join Date: 2003
    Post Count: 75

    What type of minimum deposit is required now for a loan?
    I remember a few years ago, there were 0% deposit home loans.

    A couple of examples:
    1) On an existing dwelling for $450,000, what type of deposit would be required?

    2) For a newly constructed dwelling with land for $500,000 (making me eligible for FHOG & no stamp duty), could you use the $15,000 FHOG as a deposit?

    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010

    Generally 5% deposit is the absolute minimum deposit, but this does depend on the lender being used. You also need to be able to pay for the ancillary costs which include stamp duty, solicitors fee’s etc. LMI will be applicable (and will certainly be expensive) but this can be capitalised onto the loans in most cases.

    FHOG can be counted towards the deposit, however you will still need to show the lender 5% GENUINE savings – this can be gotten around in some cases too.

    TL;DR – depends on your specific circumstances, but 5% deposit + costs at an absolute minimum.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of BrizzaBrizza
    Participant
    @brizza
    Join Date: 2003
    Post Count: 75

    Thanks for the reply.
    So the days of 97% LVR and 100% LVR are over?

    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010

    95%+LMI (most lenders 2% LMI capping to 97%, though you can go to 99.9% with a couple lenders) is the maximum. The only other ways to get around this are through family guarantees where you can get away with $0 deposit.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of BrizzaBrizza
    Participant
    @brizza
    Join Date: 2003
    Post Count: 75

    Thanks for the answer.
    So more specifically, $70k per year salary, $30k in inheritance which I would like to use as a deposit. Is there borrowing capacity and if so, how much?

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Hi Brizza

    Bit more information needed to make the assessment accurate.

    Single / married / credit card / Personal loan / How long has inheritance been in your Bank A/c etc etc.

    For a gifted deposit then in the main you are going to be limited to 90% + LMI although couple of lenders who might still do 95%.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me

    100% Investment Finance now available on selected properties. Email us for further information.

    Profile photo of BrizzaBrizza
    Participant
    @brizza
    Join Date: 2003
    Post Count: 75

    A bit more information provided:

    Single.
    No credit cards.
    No personal loans.
    Inheritance been in bank for over 3 months.
    No dependents.

    • This reply was modified 5 years, 8 months ago by Profile photo of Brizza Brizza.
    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    That certainly helps and on that basis 95% of 450K appears possible.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me

    100% Investment Finance now available on selected properties. Email us for further information.

    Profile photo of BrizzaBrizza
    Participant
    @brizza
    Join Date: 2003
    Post Count: 75

    That certainly helps and on that basis 95% of 450K appears possible.

    Cheers

    Yours in Finance

    Would that be on the basis of constructing a dwelling and utilising the FHOG and stamp duty exemption, as if I purchased an existing dwelling, most of my 30k would be taken up by stamp duty and taking me out of the 95%LVR.

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