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Deposit OptionsYou might not need as much as you think!

Help From Family Members

Guarantor Loans

A family member who has equity in property might be able to provide assistance by way of a security guarantee. A guarantor loan of this type allows you to borrow funds to cover the full purchase amount of your new home, plus any related fees and charges, without the need of saving for a huge deposit. This option could also save you thousands in Lenders Mortgage Insurance (LMI). 

Funds gifted by a family member

This is a great option if you are just falling short of the funds you need. You might have a family member willing to assist in helping you into the property market. A gift is different to a loan and must not come with a condition to be repaid, but it might just make up the difference you need. We’ll let you know more about the funds you need and where they can come from.

Government Grants and Incentives

Are you eligible for a government grant or incentive? The Victorian government provides incentives for first home buyers to assist them into their first home. We can show you how you can use these incentives when making an application for a home loan.

Stamp Duty Reductions and Exemptions

If you are a first home buyer, you could be exempt from paying stamp duty, or get a reduction in how much you have to pay.

First Home Owners Grant

You could receive $10,000 via the First Home Owner Grant (FHOG).

Releasing Equity

Sale of an Asset

Although the sale of an asset might not be able to be used as ‘genuine savings’, you can still use these funds to complete your purchase and to reduce the loan size you need.

Equity from other property

If you already have property, don’t feel that you have to have traditional ‘savings’ in a bank account to use as a deposit. Lenders will look at equity within your existing property and might be able to use this equity to fund your deposit on your new property.

Don't have Genuine Savings?

Removal of the ‘genuine savings’ requirement

When applying for a home loan, most lenders will require that part of your deposit is made up of ‘genuine savings’ (i.e. not from sale of an asset or gift).

 

Genuine savings can be proved by providing bank statements over a 3 month period that shows a consistent savings plan that results in 5% of the purchase price. However, if you have been renting through a property manager for more than six months and your rental history has always been up to date, some lenders will remove the requirement of proving this 3 months savings history.

Deposit Calculator

Deposit Calculator

Purchase Details (Victoria)

Property Use
First Time Home Buyer (?) "From 1st July 2017, first home buyers will be exempt from paying stamp duty (land transfer duty) when purchasing a home with a dutable value of up to $600,000. For purchases between $600,000 and $750,000, there is a concession for first home buyers calculated on a sliding scale."

Loan to Value Ratio (LVR) (?)
Loan to Value Ratio is a calculation used by banks and lenders which calculates the percentage of debt in relation to the value of the property. Most lenders will only lend up to 95% of the value of the property inclusive of Lenders Mortgage Insurance (LMI). LMI is payable on most loans if you intend to borrow above 80%. The more you borrow above 80%, the higher the LMI you will pay. Adjust this amount on the dropdown menu to see the different results.

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Government Fees

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Loan Fees

Some lenders will charge an establishment fee depending on the product chosen. This fee is typically $600. A lot of home loan products these days will not charge an establishment fee. This is something to consider when selecting the right product for your needs.
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If you want to borrow more than 80% of the property value, then you will most likely have to pay Lenders Mortgage Insurance (LMI). Paying LMI does help you achieve home ownership sooner without the need for a 20% deposit. The more you borrow above 80% the higher the cost of the LMI, but lower deposit you will need to pay. This calculator provides an estimate only as each lender will calculate LMI differently.
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Other Fees

A conveyancer (or settlement agent) is a person who will act for you and on your behalf in the transfer of property. Conveyancing fees will vary depending on who you appoint to act on your behalf.
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Results

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The amount you will borrow plus Lenders Mortgage Insurance (LMI)
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This is an indication only of your potential monthly repayment amount based on a 30 year loan term with variable interest rate of 3.89%p.a. for owner occupied loans and 4.74%p.a. for investment loans. For a more accurate estimate of your monthly repayment we would recomend you speak with one of our mortgage advisors.
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Disclaimer: This calculator provides an estimate of the amount of money you would need to contribute to purchase a house in the state of Victoria. The results should be used as an indication only and do not represent a quote or pre-qualification for a loan. This calculator makes assumptions based on multiple lender criteria and is not intended to be relied upon for the purpose of making a decision in relation to a financial product.
To obtain a more accurate estimate of how much deposit you will need we recommend you speak with one of our specialist mortgage consultants. Please complete your details below to arrange a more detailed assessment of your purchasing potential.

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