How much deposit do you need to buy a home?

By Darren Penn

This question is one of the biggest dilemmas facing first home buyers and resembles one of the largest barriers to purchasing a property.

With Australia’s booming property market the Australian dream of buying a home has become a bigger challenge for some, with the Australian Bureau of Statistics showing that combined capital values rose 9.8 per cent in the 12 months to June 2015.

According to the four major banks, they will consider your application once you have around 5 percent of the purchase price. However there are a number of other costs that you should consider before making any financial commitments:

  • Conveyancing costs
  • Stamp duty
  • Building and Pest Inspections
  • Insurance

If you dont have enough savings, there are a number of things you can do. Potentially use a guarantee from your parents (supported by a mortgage on their property, for instance) as equity to assist with your home purchase.

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