This is a question we get a lot. The quick answer for those looking to buy in Melbourne in 2020 and beyond is 5%. Now, answer the question of how much deposit do you need to buy your first home in Melbourne is not that straight forward. Let’s dig deeper….or just call the home loan experts to get started!
First you need to get in touch with a good mortgage broker…..wink wink
Just because you have the deposit does not mean you will get approved for the home loan. A mortgage broker can help you to understand what your chances of getting approved for a home loan are prior to the application being lodged. In fact, they have the ability to look at things from the lender’s point of view and identify any potential hurdles upfront.
If you don’t have 5% you may have to wait. However, a family guarantor home loan maybe able to solve this problem. Family guarantor home loans can really help out first home buyers if you have a 20% deposit or lower. You can get more info here.
The First Home Loan Deposit Scheme was introduced in 2020 to help first home buyers get into the property market with a low deposit of 5%. In this case the federal government garuantor the loan. In short this means you don’t have to worry about paying Lenders Mortgage Insurance (LMI).
This is another intiative to help first home buyers get into the property market faster. If you purchase a property for under $600,000 in Melbourne then your stamp duty is waived – FREE.