When it comes to saving a deposit to buy a property there are two main things to think about:
- How much you can save―the bigger your deposit, the less you’ll need to borrow and generally the less interest you’ll pay over the life of the home loan. However, saving a large deposit may take time and in a market where prices are rising, the home you want may become more expensive. It’s a balancing act and you need to make a decision that’s right for you.
- How much you aim to spend and how much you can borrow―most lenders will generally ask you to have 10–20% of the property price in genuine savings so you can show you have the financial discipline to repay a loan. But some financial institutions may lend to you if a family member provides the deposit, signs as guarantor or buys the property with you as a co-owner. However, you’ll still need to show you have savings and the ability to repay the loan.
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It’s important to consider your particular circumstances and read the relevant Product Disclosure Statement or Terms and Conditions before deciding what’s right for you. This information hasn’t taken your circumstances into account.
This information is provided by AMP Life Limited. Read our Financial Services Guide for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relation to products and services provided to you. All information on this website is subject to change without notice.