1. Breaking the Myth: 20% is No Longer the Minimum

Traditionally, a 20% deposit was considered the gold standard for property purchases. However, in today's dynamic market, buyers often choose to enter the market with a lower deposit rather than waiting. This is particularly true as house prices tend to rise swiftly, making it challenging to save at the same pace. If you have cash saved up anywhere between 5%-20% of the property value you’re aiming for, mapping out your borrowing capacity and loan structure in advance

2. 5% of $600K is $30K, right?

On our $600K illustrative property, 5% equals $30,000. However, to reach a deposit of $45,000 (equivalent to 7.5%), it helps reduce the Loan to Value Ratio (LVR) to 92.5%. Incorporating a budget for Lenders Mortgage Insurance (LMI) which safeguards lenders in case of repayment difficulties to bring the LVR to the maximum 95%. It's a crucial strategy to include the LMI in your loan amount. That way you can repay LMI over time wrapped into loan payments rather than bearing it as an upfront cost.

3. Closing Cost Considerations

Other buying expenses do exist like conveyancing/legal, valuations, registrations and bank fees from $3,000 up. We incorporate cost savings everywhere possible for you through experience and negotiations.

4. Act Now Through Specialist Assistance

The takeaway? Industry knowledge, relationships and structuring mastery equip our team to consistently help our clients to maximum purchasing potential from limited savings. Here at Investors Mortgage, we make home ownership attainable for more buyers now, not years down the road. Contact us today to start seizing opportunities.