Purchasing your first home is an exciting time but it can also be stressful when you are renting and saving for your deposit.
Apart from your own genuine savings, depending on the lender, you may be able to make use of a combination of sources which may include equity in a family member’s home (usually your parents) or monetary gifts for your deposit.
However, your home loan deposit will usually need to be at least partly made up from genuine savings. You can also use a combination of other sources, such as:
- First Home Owners Grant (FHOG) and state-based first home buyer incentives
- Monetary gifts, inheritances and tax refunds and sales of an asset such as shares
- First Home Saver Account
You should always put some money aside to cover the other costs associated with buying your own home such as solicitor fees, pest inspections and insurances. Remember that the larger your deposit the better as it not only reduces your home loan size but also eliminates the need to pay Lenders Mortgage Insurance (LMI).
If you are trying to put together a deposit for a home loan, it’s a good idea to start a budget – talk to me today for help getting your foot in the property market.
Source: Priority Lending