Generally 5% deposit is the absolute minimum deposit, but this does depend on the lender being used. You also need to be able to pay for the ancillary costs which include stamp duty, solicitors fee’s etc. LMI will be applicable (and will certainly be expensive) but this can be capitalised onto the loans in most cases.
FHOG can be counted towards the deposit, however you will still need to show the lender 5% GENUINE savings – this can be gotten around in some cases too.
TL;DR – depends on your specific circumstances, but 5% deposit + costs at an absolute minimum.
95%+LMI (most lenders 2% LMI capping to 97%, though you can go to 99.9% with a couple lenders) is the maximum. The only other ways to get around this are through family guarantees where you can get away with $0 deposit.
Thanks for the answer.
So more specifically, $70k per year salary, $30k in inheritance which I would like to use as a deposit. Is there borrowing capacity and if so, how much?
That certainly helps and on that basis 95% of 450K appears possible.
Cheers
Yours in Finance
Would that be on the basis of constructing a dwelling and utilising the FHOG and stamp duty exemption, as if I purchased an existing dwelling, most of my 30k would be taken up by stamp duty and taking me out of the 95%LVR.
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