Buying a home is one of the biggest financial decisions you’ll make, and working out your home loan deposit is the first step. Our home loan deposit calculator helps you estimate how much deposit you need based on the purchase price of the property you’re after, so you can plan your savings with confidence before you start house hunting.
Most lenders prefer a deposit of at least 20% of the purchase price. Putting down 20% means your loan to value ratio (LVR) sits at 80% or below, which typically lets you avoid paying Lender’s Mortgage Insurance (LMI), an added cost that protects the lender if you default, not you. That said, many buyers get into the market with a smaller deposit of 5% to 15%, especially first home buyers using government schemes such as the First Home Guarantee, which allows eligible buyers to purchase with as little as a 5% deposit without paying LMI.
It pays to budget for the extra costs that come with buying a property, including stamp duty, legal fees, building and pest inspections, and lender fees and charges. These costs vary by state and by purchase price, so it’s worth getting a clear picture before you commit.
The next question is what your home loan repayments will look like. This depends on your interest rate, the comparison rate (which factors in most fees to give a truer picture of the loan’s cost), your loan term (commonly 30 years), and your repayment type, whether that’s principal and interest or interest only. Owner occupiers and investors are often offered different rates, so it’s worth comparing options specific to how you plan to use the property.
A few ways to boost your deposit faster include setting up a dedicated high-interest savings account, using an offset account against an existing loan if you have one, automating regular transfers, and cutting back on non-essential spending in the lead-up to your purchase.
Every lender has its own terms and conditions, credit criteria and rates, so the figures from this calculator are a guide only. For a clear picture of your borrowing power and the best home loan options for your situation, book a free chat with one of our mortgage brokers, we’ll walk you through your numbers and help you move forward with confidence.
We support all good borrowers on their home loan journey, whatever that means for you.
You can apply for a home loan online, if you are:
We recommend booking a call with our home loan experts if you are:
