So after paying off our old house for years after we lost money in it's sale, DF and I are finally in a position to start looking in our new location.
This has been bolstered by the fact we (Well, I) have just found out I am getting an excellent tax return due to working a very small part of last financial year but paying full tax. Also major banks announced yesterday that a 5 year fixed rate at the moment is 4.99%. We want to jump on that as soon as we can.
We worked out if we spend around $280 000 we will be paying slightly less per fortnight than we pay in rent for where we currently are. The house of course will be crappier, but you can't have it all, right?!
Anyway, since it's been 9 years since we bought a house, and in that time the good ole GFC happened... Neither us know exactly how much deposit we would need... I bought our last house with a $4000 deposit! It's crazy, I know! It was a 97% loan but I can tell you it was very, very, cheap compared to prices these days!
If anyone cares to share what percentage deposit they paid or know is the 'going' rate it would be really helpful, or any knowledge on the subject really!
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25-07-2014 08:25 #1
What % house deposit?
25-07-2014 08:29 #2
It's 20% if you don't want to pay mortgage insurance. The very minimum you can pay is 5%.
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25-07-2014 08:31 #3
25-07-2014 08:32 #4
I'm interested to know this, too as we're looking at getting a second house soon. We paid $30k deposit on this house but if it's 20% and we're probably going to have to spend $500k on our next house that's a $100k deposit...damn stupid house prices!
25-07-2014 08:40 #5
For something good we would need to spend $350+. Well a 20% would be $70k. Obviously we can't afford that, with paying rent and everything else. We honestly will be scraping to get 20% for a house at $280k. And it means no wedding
25-07-2014 08:43 #6
Oh Noms, that sucks! I think the worst part is having owned a former house there's no first homeowner's grant either. You can borrow more than 80% but you have to pay mortgage insurance. Your best bet is to speak to a good mortgage broker hopefully you can get into the property market because once you're in you at least have something to work with. That's why we're currently living in the crappiest suburb in Perth! 😉
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25-07-2014 08:47 #7
My DP and i are looking now and only have a 5% deposit.
Our broker said to us most banks will only lend 95% of the total + Mortgage Insurance. Never any more then that.
A friend of mine bought a house last year and her bank (St George) only required 10% to not have to pay Mortgage Insurance.
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25-07-2014 08:47 #8
25-07-2014 08:48 #9
20% is only if you want to avoid lenders mortgage insurance, otherwise 10% is the norm.
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25-07-2014 09:14 #10
Don't forget you also need to have the money upfront for fees! Our fees alone were 10k! We had to come up with ontop of our deposit!!
In Tas there is no FHOG anymore and even if there was it still wouldn't be enough to cover all the fees.
You will need an absolute minimum of 5% most banks will not even look at you without 10! You will need to also have Insurance with less then 20%
You need a genuine savings history, if you do not have that no way will you get a house with such a small % deposit.
So the bare minimum you need is
5% + 5% genuine savings + you will need 10-20k for fees.
Last edited by waterlily; 25-07-2014 at 09:16.
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