How much deposit is required depends mainly on how much you want to spend on a property. Ideally you should have 20% of the purchase price plus allow for other costs such as State charges eg; Stamp Duty and solicitor's fees.

For deposit amount less than 20%, their are some lenders that will lend you up to 95% of the property value. And there a few lenders that will still go up to 98%.

If you are borrowing above 80% of the property value you may need to pay what’s called Lenders Mortgage Insurance (LMI).

However, if you are eligible for the First Home Guarantee their is no extra cost of Lenders Mortgage Insurance.

Ideally you should have a 20% deposit as this will eliminate paying LMI (Lenders mortgage insurance).

With the help of a guarantor, you can borrow over 100% of the purchase price. This will allow you to buy a home and pay for purchasing costs such as stamp duty and legal costs.

Like to know more? View page GUARANTOR HOME LOANS or book a time to chat CLICK HERE

Lenders Mortgage Insurance is required when the loan amount is more than 80 per cent of a property’s purchase price or property value.

In very basic terms, a lender considers a loan to carry a higher risk if the loan-to-valuation-ratio (LVR) is above 80 per cent. Therefore, requires you to pay the  insurance premium for higher risk

Stamp duty – or transfer duty – is charged on transfers of residential land and is payable by the purchaser. The amount of stamp duty which is payable is based on the purchase price of the property. If you are a First Home Buyer and purchasing a property as your primary residence, you may be entitled to a Stamp Duty concession.

For more information visit "The Office of State Revenue" in your state QLD OSR

All lenders have a different criteria when assessing you borrowing capacity. A mortgage broker will review lenders if required to maximise your borrowing capacity.

Other ways to increase you borrowing capacity are:

• Reduce your credit card limits - even if you have a zero balance, lenders will use the limit
• Reduce or close personal loans before applying for a home loan.
• Review your living expenses. Lenders will allow a minimum amount for your livings expenses, however if you are spending more then the lenders minimum, they will use the higher figure.

Book a call with Your Home Loan Consultant for full review of your borrowing capacity

Australian citizens and permanent residents who are at least 18 years of age. 

Individual applicants with a taxable income of up to $125,000 per annum for the previous financial year and joint applicants with a combined taxable income of up to $200,000 per annum for the previous financial year, as shown on the Notice of Assessment (issued by the Australian Taxation Office).

For all FHBG applications made from 1 July 2023 to 30 June 2024 the relevant financial year assessed will be 2022-23. 

The First Home Guarantee assists individual applicants and joint applicants (together) who have at least 5 per cent of the value of an eligible property saved as a deposit. 

If 20 per cent or more is saved, then the home loan will not be covered by the First Home Guarantee.

The amount you can borrow for a home loan depends on a range of things. When your bank considers your ability to pay back your loan, they look at many personal and financial details, which may include your:

• income
• expenses
• living expenses
• liabilities, including other debts and commitments
• the number of dependent children
• existing assets, such as investment properties.

Lenders consider these things to make sure you can make repayments on the loan without placing yourself under financial hardship.

You can estimate how much you may be able to borrow using our borrowing capacity calculator. This is just a general guide as your borrowing capacity will vary from lender to lender.

For an accurate assessment of your borrowing limit, book phone appointment https://bit.ly/yhlc-calendar and will review your borrowing capacity on the lenders calculator.