First home buyers are often faced with a dilemma when it comes to their deposit. They need to pay towards the process, but don’t want to put too much money into it at once. This is where first home buyer loans can help!
What is the minimum deposit required for a first home buyer loan?
The minimum deposit required for a first home buyer loan is 5%. This means that if you want to get a mortgage from a bank or building society, your initial investment needs to be at least $5,000.
If you’re applying for an equity release loan, the amount of money you have available will determine how much equity can be released by your lender. You can usually expect lenders to look at between 10%-20% of the value of your property as being enough equity in order to grant approval for an affordable mortgage option.
Is there any exemption or concession available to help first home buyers with their deposit?
There are no exemptions or concessions available to help first home buyers with their deposit. The deposit can be used to pay for the first home owner’s stamp duty and land tax, but it cannot be used as a payment for a mortgage broker.
As we’ve seen, there are a range of factors that can determine how much you need to borrow. However, the overall amount needed is determined by your total income and debts. Also, if you’re looking at getting a home loan from an approved lender and have been rejected before, then it could be worth investigating your options further – just ask us!