The short answer is that most lenders will want to see a 20% (or greater) deposit.

However if you haven’t quite saved up enough yet, lenders have found a way for you to still get into your new home…

Lender’s mortgage insurance(LMI) is usually required where your deposit is less than 20% of the purchase price of your property and it protects the lender in the event that you default on your repayments.

This will allow you to have less than a 20% deposit but you will have to pay for it !

Don’t forget… deposit is not the only thing the bank is looking at… you still need to be able to afford the repayments! This component of your home loan application looks at factors such as your income, any other large debts you may already hold, dependents, existing liabilities such as credit cards, credit history, living expenses etc.

If you would like to find out more about how much you can borrow, contact us today!