Q.  How much deposit do I need when buying a house?

A.  You will need enough for:

• all the government duties & fees, as well as insurance, mortgage prepartion costs and other legal fees.  Refer our Stamp Duty and Government Fees Calculator;
• PLUS your contribution to the purchase of the property i.e. over and above the proceeds of the loan.  This needs to be at least 10% of the purchase price;
• LESS the First Home Owners Grant, if applicable to you. 

Q.  My Real Estate Agent told me that we only needed a 5% deposit - isn't that correct?

A.  No, this is old information.  Before the Global Credit Crisis occurred, home loans could be done at 95% LVR, but this is no longer the case.  You will need a full 10% deposit, plus all the government fees & other costs, less the First Home Owners Grant, if available to you.  One of our staff, or consultants will be able to give you more precise figures relevant to your personal circumstances.

Q.  What are genuine savings and how do these apply?

A.  As a response to the Global Credit Crisis, some property purchasers [needing a LVR of 85% or higher] may need to show that they have "genuine savings" i.e. have saved a sufficient amount over at least the last 3 months, to qualify for a loan.  Genuine savings can include proceeds from the sale of another property, sale of shares, funds in bank account and etc.  Each applicant's circumstances are different and the best way to answer this question is to speak to one of our consultants.