How much do I need?

The million dollar question. Sadly this is not a straight forward answer. What I will aim to outline here is the minimum deposit that is required to get a loan.

The amount of deposit you require will depend on the amount of loan you are requesting from the bank and the lender you are applying to for finance.

Some lenders require a 2% deposit, while others require a minimum of 10%. If deposit is a factor for you its worth discussing your circumstances with your Lime Mortgage Broker to assess your circumstances and recommend your best options as qualifying criteria varies with each lender.

Here is a table of minimum deposits from some of the lenders on our panel:
how much do I need table 1
Points to note:
Some lenders will let you use your first home owners grant as part of your deposit where some will not and require you to save the first 5% of your deposit.

Deposit is not the only funds you will require when purchasing/building a home. You should also factor in stamp duty, transfer costs, settlement agents fees, finance costs and sundry settlement costs.

Some lenders charge you lenders mortgage insurance (see our blog on LMI). When you put down the minimum deposit you will be charged at the maximum rate.

Some lenders require a portion of your deposit to be genuine savings. Genuine savings are generally made up of money you have saved yourself. Lenders require you to prove this with 3 months statements on your bank accounts. The following are not generally considered genuine savings:
  • Gifts
  • Inheritance
  • Proceeds from the sale of an asset
  • Tax refunds
  • Bonus
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