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Is a 10% deposit still required by most banks/lenders for a home loan?

4 years ago

Some lender will lend you 95% plus the loan mortgage insurance so for the property you need to have at least 5% BUT there are other costs like stamp duty which in NSW is around 3% and legal cost.

So, 10% is like a safe minimum to buy a property where 5% goes to property and 5% goes to other costs


Hi Bill that is a very good question. It depends on what the purpose of the loan will be. You say a "home" loan so if you are looking to purchase your own home that being to reside in most lenders are now only liking for 5% deposit.
If this is for an investment purchase and this will be your first purchase most lenders do still require 10% deposit. However if you already have a property & this would be a second purchase than you can get away with a 5% deposit.
I hope this helps & I'm happy to talk further about what you are looking for in a loan.
Rebecca from Awesome Lending Solutions.


You are most welcome Bill. Hope I was able to help.

Hi Bill, it depends on your purpose. There are different lending policies for investors as for home owners. If your purchase is a home owner there are still lenders that allow 5% deposit but just remember you may need more money for stamp duty and legal fees. In short 10% of the purchase price is a good number to aim for to cover all you need. Less if you are a first home buyer and are purchasing a brand new property. Let me know if you'd like any more information. Peita

Hi Bill V, Whilst there are still lenders that will lend to 97% including Lenders Mortgage Insurance if you aim for 10% then this will give you a better range of lenders to chose from and make sure you have enough funds to cover all costs. Cheers, Rob


Many do, but 95% borrowing is still available, provided any Lenders Mortgage Insurance that is added to the loan amount, sees your borrowing stay under 97% of the security value.

Hi Bill,

Yes by some banks, however there are lenders out there require less. The less the deposit generally comes with more fees, charges and higher interest rate.

Again it depends on the lenders criteria such as:

Financial position
Location of property
LMI provider
Extra funds to complete transaction

I would suggest you chat with a finance broker so they can assess your personal situation.

Happy to chat.

All the best,

Daniel Huy

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