How can you increase your home loan deposit? Accessing a savings account with a generous interest rate will boost your savings! You could choose an account with a 3% interest rate and enjoy a sizeable increase to add to your home loan application.
Use our savings calculator and find out now how much your savings could rise when opting for a savings account.
Enter the amount of cash you will initially deposit along with regular deposits to the account. Choose the interest rate and the saving term and discover the total interest earned. How much have you added to your home loan deposit over the saving term?
Use our saving calculator today and start saving for your next home loan deposit!
Frequently Asked Questions
Increasing your home loan deposit is essential because it can lead to several benefits, such as reducing your overall loan amount, lowering your monthly mortgage payments, and potentially qualifying for better interest rates from lenders.
The minimum deposit required to buy a home in Australia typically varies between 5% to 20% of the property’s purchase price. However, it’s important to note that a higher deposit can offer better loan terms and conditions.
While there is no fixed rule, it is generally advisable to aim for a deposit of at least 20% of the property’s purchase price. This can help you avoid paying lenders mortgage insurance (LMI) and secure more competitive interest rates.
Lenders Mortgage Insurance (LMI) is an insurance that protects the lender in case the borrower defaults on their mortgage. It is usually required when the borrower’s deposit is less than 20% of the property’s value.
You can save more for a larger deposit by creating a budget and cutting unnecessary expenses, setting up a dedicated savings account, exploring government assistance schemes for first-home buyers, and considering additional sources of income.
Yes, there are government schemes to assist first-home buyers in Australia. Some examples include the First Home Loan Deposit Scheme (FHLDS), First Home Super Saver Scheme (FHSSS), and various state-based grants and concessions.
Yes, most lenders accept gifts or inheritances as part of your deposit. However, they may require a signed letter from the donor confirming that it is a gift and not a loan.
If increasing your deposit seems challenging, you can explore options like finding a guarantor for your loan, which allows someone else, like a family member, to offer their property as additional security for your home loan.
While a larger deposit can strengthen your loan application and improve your chances of approval, lenders also consider other factors like your credit history, income stability, and overall financial position.
This decision depends on your individual circumstances. While a larger deposit is advantageous, you should consider factors like property market trends, interest rates, and your current housing needs when deciding whether to wait or proceed with a smaller deposit.