Are you looking to buy your first home in Melbourne? If so, you’re probably wondering how much money you need to save for a deposit. While the amount you’ll need to save depends on a number of factors, including the price of the home you’re interested in and the type of loan you’re applying for, there are a few general guidelines you can follow.
In this blog post, we’ll outline everything you need to know about saving a deposit for home loans in Melbourne.
How Much Do You Need For A Home Loan Deposit?
In Australia, most lenders will require you to have saved at least 5% of the purchase price of the home as a deposit. However, some lenders may require a 20% deposit. So, if you’re looking at purchasing a $600,000 home, you’ll need to have saved at least $30,000 (5% of $600,000). If your lender requires a 20% deposit, you’ll need to have saved at least $120,000 (20% of $600,000). Keep in mind that these are just general guidelines – your lender will ultimately determine how much money you’ll need for a deposit.
The Good News: You Can Borrow Your Deposit!
If you don’t have enough money saved for a deposit, there’s no need to worry – in most cases, you can actually borrow your deposit using what’s called a “guarantor loan”. With a guarantor loan, your parents or another family member guarantees your loan with their property. This means that if you default on your loan payments, they’ll ultimately be responsible for repaying the loan.
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Saving For Your Home Loan Deposit
Now that we’ve answered the question “how much do I need for a home loan deposit”, let’s look at some tips on how to save for your deposit quickly and efficiently. One of the best ways to save for your deposit is to open up a savings account specifically for this purpose – this will help you keep track of your progress and make sure all of your money is going towards your goal.
Another tip is to cut back on unnecessary expenses – things like eating out and buying new clothes can add up quickly! If possible, try to put any extra money towards your deposit – even small amounts can add up over time.
Finally, be patient: buying a home is one of the biggest purchase decisions you’ll ever make, so it’s important to take your time and make sure everything is just right before making such a big commitment.
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Good Luck!
Saving for a home loan deposit in Melbourne can seem daunting at first, but following these simple tips will help make the process much easier. Just remember – be patient, stay organised, and cut back on unnecessary expenses. With some time and effort, you’ll be well on your way to owning your very first home!