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Nathan B.
Nathan B.
Leichhardt, NSW

I’m a first home buyer and want to know what deposit I’d need to buy a unit around $900,000 and could I still access the first home buyers grant as it wouldn’t be a brand new unit, Thanks

last year


Hi Nathan

I think you fall at the first hurdle mate: the value of the home needs to fall between $650k - $800k


but I think you will get the stamp duty concession which is better than a poke in the eye with a burnt stick, as my dear old Dad used to say.

I am sure that there are loads of people out there who have much better knowledge than I do, but the links I have added are straight from Service NSW which is the go to place for this scheme.



Thanks Brendan for the links. Very helpful

Hi Nathan,

For a 900k purchase there is no stamp or FHO relief. Stamp duty on a 900k purchase NSW is $36,000.

The ideal deposit is 10% plus stamp duty.
Below is an article I wrote a little while ago.

I would always recommend you sit down with a broker such as myself to answer any questions. Our service is always free. From the meeting you will understand your borrowing capacity, funds to complete, process / steps, product, lender and pricing. A broker will also guide you through the whole property buying process.

Article - Ideal Deposit

To purchase property in Australia you will require a deposit or the available equity of another property.

Ideally the bigger the deposit the less you have to borrow which ultimately will reduce your repayments.

Some Terms
LVR - Loan to Value ratio of a property i.e. 810,000 loan / 900,000 property = 90% LVR

LMI - Lender Mortgage Insurance payable to an insurer to protect the lender in the event a lender cannot recover the full cost of a property. Generally payable on loans with less than 20% equity or deposit. LMI is capitalised on the loan and will add to the total LVR.

Stamp Duty - Each state will require you to pay stamp duty on a property. If you are a first home owner you may be exempt or receive a concession.

Deposit Tiers
I have broken the size of your deposit into tiers to assist you with understanding how LMI and Rates are affected. For Residential Owner Occupied it is possible to have 5% deposit + stamp. For an Investment loan at present you will need approximately 12.5% deposit and stamp.

30% + Stamp Duty - No LMI, Best Available Interest Rates
20% + Stamp Duty - No LMI, Good Interest Rates
10% + Stamp duty - LMI Rate Tier 1, Ok / Good interest rates
8% + Stamp duty - LMI Tier 2, Ok / Good interest rates
5% + Stamp duty - LMI Tier 3, Poor interest rates, Not recommend

My tip is if you are trying to find the balance of deposit and property value then a 10% deposit is an ideal target. 8% if you really want to get into a property today. 5% is more of an emergency and need to get a loan as you may forfeit your deposit i.e. soft valuation.

Lenders Deposit Tiers
Some lenders have policy on the minimum deposits size required.

Why having a 10% or bigger deposit is recommended - Soft valuation
A soft valuation occurs when the purchase price is more than the bank values the property.
Original Purchase Price : 900,000
Deposit : 90,000
Loan Required : 810,000
Current LVR 90%
Lender does a valuation and values the property at 870,000
The new LVR is 92%, the client has now been pushed into a higher deposit tier. This means a client will either have to increase their deposit or pay more LMI. If LMI exceeds a lenders policy on minimum deposit required the loan cannot proceed and another lender will need to be found.

Peter Pakarinen
Aussie Ramsgate
We service all of Syndey and can come to you.
02 9037 8278


HI Peter, this is great information, thank you for taking the time

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