Use a bond to exchange contracts while your cash is still tied up elsewhere. Reducing your LVR below 80% means you may not need to pay LMI, which can save thousands. Lenders continue to assess income and servicing capacity before approving a loan.

• If you live and plan to buy or build a home in one of 45 eligible local council areas, you can have a higher gross (before tax) annual household income—up to $201,000—and still qualify for the loan.
• At the same time if 5% is all you have then the true 5% only lenders are still a great way to get your foot in the door.
• Use a bond to exchange contracts while your cash is still tied up elsewhere.
• We pay our respect to First Nations peoples and their Elders, past and present.
• You can choose to buy established, or build a new home, including a modular home with our new Modular Home Loan.

The results of the borrowing power calculator are based on information you have provided and is to be used as a guide only. The output of the calculator is subject to the assumptions provided in the calculator (see ‘about this calculator’) and are subject to change. It does not constitute a quote, pre-qualification, approval for credit or an offer for credit and you should not enter commitments based on it. Your borrowing power amount will be different if a full application is submitted and we complete responsible lending assessment. The results in the calculator do not take into account loan setup or establishment fees nor government, statutory or lenders fees, which may be applicable from time to time.

Home loans from the government

Saving this deposit is often the biggest challenge for first home buyers today. Use LVR to calculate buying power and know your deposit needs. Your Aussie Broker can also help you explore flexible loan features like offset or redraw accounts once you’re ready to buy.

Who can apply

For example, if you’re buying a home worth $800,000, a 20% deposit would be $160,000. The remaining $640,000 would be covered by your home loan, subject to the lender’s assessment and approval. It’s good to know your LVR when exploring your home loan options as discounted interest rates can sometimes be offered on a lower LVR. When looking at home loans, you’ll usually see LVR tiers relating to the different interest rates. The general rule of thumb is that you will need between 5% and 20% of the property purchase price as a deposit to be eligible for a home loan. That means if the property is $600,000 you’ll need $30,000 as a deposit (at the very minimum).

In some circumstances you may need to provide proof of genuine savings. Genuine savings refers to money you’ve saved up Trusted casinos in Australia yourself, usually for a minimum of three months and at least 5% of the value of your purchase property. Most lenders can approve loans with deposits as low as 5–10% of the property’s value, depending on your income, credit history, and lender criteria. Not everyone has a full 20% deposit ready, and that’s perfectly fine.

This protects the lender in case you default on the loan and they need to sell the property at a loss. While there isn’t any direct benefit to the borrower, it does mean you can get on the property ladder with a smaller deposit. If you’re struggling to save up for a down payment, there are low deposit options that you can utilise to help you get on the property ladder. For instance, if you’re buying a home for $350,000, the average down payment you would need to save would be between $35,000 to $70,000. Obviously, this is high, and home buyers will need a savings plan to reach this goal. There are also government schemes that let first home buyers purchase homes with deposits below 20% and no LMI.