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  1. #1
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    Default First home, deposit? How much do you REALLY need?

    So, we've never owned a home, don't know a thing about it. We will be in a position in a years time where we will have a 20k deposit saved. How much do we really need? Will that be enough to purchase a pre existing modest small home in the outer suburbs of Brisbane?

    All the people I know have $650 week repayments on their mortgages... We simply couldn't afford that.

    Tips please?

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    Default First home, deposit? How much do you REALLY need?

    How much is the house you are looking at?
    What's your credit history?
    Have you got any credit cards maxed out etc?
    Start looking at lenders and see what they require for a deposit. 5%, 10% or 20%.
    How much can you afford a week? Start with that and work out how much you could borrow.
    Play around with the mortgage/borrowing capacity calculators online.
    Look at realestate.com a few times a week and see what the average prices are. What's selling? What's not. Go to some auctions. Get a feel for the market.
    It's likely to rise a little bit over the next 12 months so keep that in mind.

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    Default First home, deposit? How much do you REALLY need?

    The minimum you will need is 10% deposit of the purchase price plus stamp duty plus legal fees plus mortgage insurance ( 20% deposit would be better as no mortgage insurance is needed!)
    so on a $500,000 house you would need approx $79,000 ($ 50,000 deposit, $20,000 stamp duty (nsw) $2000 legal fees $7000 bank fees with mortgage insurance)

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    You'll most likely need a minimum of 5% of the purchase price as deposit (there's quite a few banks around that do 5%, like ING), plus add on lenders mortgage insurance if you have under 20% deposit. This is usually added on to the loan so you don't need it upfront, but if you're calculating how much in repayments factor that in. There's stamp duty/transfer duty calculators around, you'll need that upfront too. Also about $1000+ for building and pest plus legal fees. And removalist fees etc.

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    we had 25k + 7k first home owners. on a 310k house that money was eaten up by fees, and mortgage insurance, so we really didn't make much of a dent into the actually loan.

    If you can, borrowing less then 80% of the house value is a good idea as I *think* this is where you don't have to pay mortgage insurance.

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    Default Re: First home, deposit? How much do you REALLY need?

    Well seeing as that we live on the far outer suburbs of Brisbane I wouldn't want to be buying a house much over 300k...

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    We are in NSW and about 12 months ago bought a $250 000 house. We had about $35k in the bank profit from selling our old place and it was all munched up, and then some. And that was only with a 10% deposit.

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    Default First home, deposit? How much do you REALLY need?

    Quote Originally Posted by Happy2be3 View Post
    Well seeing as that we live on the far outer suburbs of Brisbane I wouldn't want to be buying a house much over 300k...
    10% of 300,000 is $30,000. Then you'd need stamp, LMI and legals.
    10% of 250,000 is $22,500. Plus all your extra costs.

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    Default First home, deposit? How much do you REALLY need?

    $30,000 deposit, $8500 stamp duty $5000 mortgage insurance $2000 solicitor so approx $45,500 for a loan of $300,000 - talk to a broker for exact figures

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    Default Re: First home, deposit? How much do you REALLY need?

    So our possibility of buying a house is a long way off then. :-(


 

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