How Much Deposit do I need to buy a house?

Posted on Posted in Front Page News, News & Events

Here’s an article from Member Marie Soliman, Home Finance Broker:
How Much Deposit do I need to buy a house?
This is one of my frequently asked questions and it all depends on the lender. Most lenders now lend up to 90% of purchase price, there are still a couple that will go up to 95%. So you need the deposit for the lender PLUS the government stamp duty and transfer fees. Here is an example:
Purchase Price: $350,000
Base Loan Amount at 95%: $332,500
Your contribution: $17,500
Government Stamp Duty etc: $16625
Lenders Mortgage Insurance: $12435 (#see below for more info#)
Total deposit required: $46560 **
** Please note: this amount does not include any lender or conveyancer fees which would be in addition.
The best thing to do when trying to work out how much of a deposit you will require to buy property is to give me a call, I can work it reasonably quickly based on purchase price.
In some instances, you may have family that can help and provide additional security so that a deposit may not be required. This is called a ‘family pledge’ loan and I’d be happy to discuss this in more detail.
#Lenders Mortgage Insurance is an insurance that the bank takes out in what they deem higher risk lending, which is generally anything over 80% of purchase price. The insurance protects the bank but the premium is paid by you. For more information please go to: and click on ‘What is Lenders Mortgage Insurance’.