Fact check? It’s true. But, the deposit hurdle need not be an insurmountable one if you investigate your options.
In Brisbane, you’ll need $160,290 based on a 20% deposit and a median house price of $801,449 in December, says Domain. For a unit, you’ll need $88,925 based on a 20% deposit and a median unit price of $444,623.
We know $160k sure looks like a hurdle for most. So here are a few thought-provokers to consider when figuring out if you really need to be saving a mega deposit, or whether you can achieve home ownership with a fraction of that amount.
Discuss these points with an independent mortgage broker to help really understand your personal situation:
- Most first buyers secure a home at the cheaper end of the market. This could mean moving to a cheaper suburb or buying a doer-upper in a more established suburb. You’ll be saving that deposit forever if you try to achieve a second-home purchase on a first-home budget.
- Research government grants. For a good starting point, check out the National Housing Finance and Investment Corporation (NHFIC) web page on Support to buy a home. Also read up on the Queensland first home owners’ grant. You may be eligible for a grant or eligible to borrow more than 80% of the loan (reducing the need for a 20% deposit) without needing to pay lenders mortgage insurance.
- Lastly, weigh up the pros and cons of borrowing more than 80% of the property value. The downside is you will pay lenders mortgage insurance (unless you are eligible for a NHFIC scheme mentioned above). Also, your mortgage repayments will be higher, which can be unnerving in an environment where interest rates are rising. The upside is that if you know you can comfortably afford the repayments, but are struggling to save a deposit while paying rent, you could be paying off your own home loan sooner instead of your landlord’s.
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