It depends.... Most paces expect a 10% deposit but it depends how desperate the buyers are to sell and whether or not a bank will let you go ahead. Up here it's a 3% deposit in Canberra but 10% in Yass... some people get away with 1% deposits... it really depends on the bank etc...
Also remember if you are borrowing more more than 80-90% (ie your deposit is less than 10-20%) the bank/lender will require you to pay lenders mortgage insurance. This is usually a few thousand depending on the size of the loan. It is not insurance that covers you, it covers the bank if you default on your loan.
Then you also need to fund stamp duty and loan application fees etc on top of your deposit, so don't forget to factor in that too. If you're a first home buyer though, you'll get the first home buyers grant (assuming it is still around then) and this could cover some of the costs and deposit.
Yep, it's 10% in WA for a bank to look at lending you money... UNLESS you have someone to go Guarantor for you that does have that sort of money or equity, then I think you can get away with having nothing saved up.
And yes, don't forget about the stamp duty fee's, loan application, settlement fees and all that other fun stuff! ><;
I've found that the banks are really cracking down at the moment, and unless you have 20% deposit - they're turning more people away than accepting them.
Hopefully in 3 years time, they will be back to lending you money with 10% deposit - 10% is good, you don't really want one to lend you everything as their interest rate is usually much higher than a standard bank, PLUS, if you were to refinance they chuck on a BIG penalty for you. SO you are usually stuck with it for at least 3 years before you can refinance - which can end up being a lot of money in wasted interest that you need not be paying IYKWIM?
When we got our first house - we had nearly 20K saved up, and we got a loan for 250K not a problem.
And yes, don't forget to factor in stamp duty and legal fees (including searches).
If you are serious about saving for a house and not touching the money then google first home saver account sponsored by the Govt. There are tax advantages and they also make contributions to your savings as well (which makes it grow faster).
+1 to Muppity. DH and I have a FHSA each. Convenient for us, as contract-wise, we don't want to buy for three years anyway, so if Kevvy Rudd wants to pay us 17% not to do so, we can't say no! There's a few conditions, but it's actually less restrictive than many people think.
You're not locked in for 4 years - you have to contribute in 4 separate financial years, but can mean say 30 June 2009-1 July 2012.
Our bank pays their highest interest rate for an online saver, as well as the govt contribution.
If you decide down the track that you're not going to buy, the money gets rolled into your super, which is where it should be going, if you're not buying
You really really can't touch it. It's not like the online save where "you can't touch it" (but all you need is net access, and you can. You really can't get at this one.
snuggley bean, i just checked out DP's bank (credit union) they have FHSA, but you have to have one each. i didnt quite understand it though, does it mean we would have to have a loan through them?
i had a look at my banks website (Westpac) and there doesnt seem to be an account that we can't touch.. the term deposit account says $5,000 opening balance.
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