
10 steps to buying a house in Australia 2023
Deciding to buy property will probably be one of the most life-changing, and perhaps daunting, decisions of your life with many factors to carefully consider. Whether you’re a first home buyer or...
A deposit is a portion of the full purchase price that a buyer pays upfront to secure a property.
A deposit is a portion of the full purchase price that a buyer pays upfront to secure something. It serves as a commitment and shows the seller that the buyer is serious about the purchase. The deposit is usually a percentage of the total sale price and is held in trust until the completion of the transaction.
The amount of deposit required to buy a property can greatly vary. In many cases, deposit requirements range anywhere from 5% to 20% of the property's value, but this can depend on factors such as your income and which lender you use. With this said, it is generally recommended to go with a 20% deposit as a deposit less than this amount typically means you’ll have to pay lender’s mortgage insurance (LMI). Essentially, this is a type of insurance that protects the lender/bank in the event that you default on the home loan.
Saving up for a house deposit requires a strategic approach to managing finances. Here are some tips to help you save for a house deposit:
Compare your property to recent sales in the area to get a current market estimate.
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