How Much Deposit Do You Need?
When applying for a home loan, the deposit amount significantly influences your borrowing capacity and loan options. Most lenders across Australia typically require a minimum deposit of 20% of the property's value. However, some Home Finance & Mortgage Brokers can help you access Home Loan options with deposits as low as 5%.
Here's what different deposit sizes mean:
• 20% or more: Ideal position, avoiding Lenders Mortgage Insurance (LMI)
• 10-19%: Common range, but requires LMI
• 5-9%: Possible but includes higher LMI costs
Understanding Loan to Value Ratio (LVR)
Your deposit directly affects your LVR, which lenders use to assess risk. For example:
• $100,000 deposit on a $500,000 property = 80% LVR
• $50,000 deposit on a $500,000 property = 90% LVR
Lower LVR often leads to more favourable interest rate discounts and Home Loan options.
Additional Costs to Consider
When saving for a deposit, remember these additional costs:
- Stamp duty
- Legal fees
- Building and pest inspections
- Moving costs
- Loan establishment fees
Smart Strategies for Building Your Deposit
Nurses can employ several strategies to build their deposit:
• Salary sacrificing into a dedicated savings account
• Setting up an offset account with your existing bank
• Regular overtime shifts dedicated to savings
• Government assistance programs
First Home Buyer Benefits
First-time buyers may access various government schemes that can reduce the required deposit size. These vary by state but may include:
• First Home Owner Grants
• Stamp duty concessions
• Government guarantee schemes
Getting Home Loan Pre-approval
Once you've accumulated your deposit, getting Home Loan pre-approval helps you understand your position in the property market. To get pre-approved, you'll need:
• Bank statements (3-6 months)
• Payslips and employment details
• Identification documents
• Evidence of your deposit
Making Your Application Successful
When ready to apply for a home loan, consider these factors:
• Compare both variable home loan rates and fixed interest rate options
• Calculate home loan repayments under different scenarios
• Consider features like offset accounts
• Review your financial situation thoroughly
Professional Support
Home Finance & Mortgage Brokers specialising in nurse loans can access Home Loan options from banks and lenders across Australia. They understand the unique aspects of nursing income, including shift work and overtime.
Ready to take the next step? Call one of our team or book an appointment at a time that works for you to discuss your Home Loan options.
