The dastardly deposit has thwarted the first home buying dreams of countless young Australians. After all, the standard amount that some lenders recommend for a deposit (20 per cent) is an imposing figure that even the thriftiest of buyers may struggle to save.
It's no wonder why 41 per cent of home buyers said that accumulating a deposit was the hardest part in a 2016 First Home Buyers Australia (FHBA) survey. Does it have to be so tough?
How much do you really need?
The amount you need as a deposit depends on a variety of factors including the lender you choose, your current financial situation, your employment and your assets. But generally speaking if you go with a mortgage advisor whose goal it is to get you the best finance possible, you could be eligible for a home loan to the value of 95 per cent of your home! That's means all you need is a meagre 5 per cent deposit.
If you'd like to buy the average unit in Adelaide you might need as little as $17,641 to get on the property ladder. To buy the average house you may need a deposit of under $25,000, CoreLogic RP Data has indicated.
Make your application a sure thing
Check your credit history with an agency such as Veda to ensure there are no mistakes.
It's well worth getting your ducks in a row before applying to increase the chances of your loan's approval. Firstly check your credit history with an agency such as Veda to ensure there are no mistakes, or blemishes that could jeopardise your application.
Next ensure you're in stable employment of a year or more prior to applying and prove your ability to be financially responsible by accruing genuine savings. Finally minimise or erase all of your debts. After you've taken care of the above, you'll be far more attractive to prospective lenders, and far more likely to secure a loan with a 5 per cent deposit.
Get the best help available
You don't have to go it alone when it comes to applying for a loan. Gain the advice and guidance of a professional advisor, who has your best interests in mind by enlisting the service of an Advantage Finance Mortgage Advisor.
The FHBA survey mentioned earlier revealed that mortgage brokers are considered the most useful service available for Australian first home buyers. With our help you'll have a strong chance of being approved for a loan, without having to save three years salary or more for a massive deposit.