So, how much deposit to buy house in Perth? The amount of deposit you will need to buy a house in Perth will depend on various factors, including the price of the home, your financial situation, and the terms of your mortgage.
It is typically recommended to have a deposit of at least 20% of the purchase price. Having 20% of the total money means you can get a home loan on the rest of the property value with more favourable terms and avoid mortgage insurance.
Nevertheless, it is possible to buy a house with a smaller deposit. For example, some lenders may offer mortgages with a deposit of 5% or less. However, these mortgages may come with higher interest rates and mortgage insurance. As a result, it is important to weigh the costs and benefits.
How much deposit do I need for a house in WA?
The minimum house deposit to secure a mortgage is 5% of the purchase price. However, some lenders may ask for a larger deposit – usually at most 20%, particularly if you have a lower credit score or are applying for a mortgage with a high loan-to-value ratio.
You can consult a mortgage broker or lender to get a more accurate estimate of the deposit requirements and taxes when buying property in Western Australia.
How much is the down payment for a house in Perth?
20% or more is considered a reasonable down payment when buying a house in Perth. However, you may be able to put down as little as 10%, depending on the lender.
But a down payment of 20% or more is recommended. Because a larger down payment can get you a lower interest rate and better terms on your mortgage.
How much deposit do I need for a $300000 house?
The amount of the deposit you need for a $300,000 house will depend on the type of mortgage you are obtaining and the lender’s requirements. If you can secure a mortgage with a minimum down payment requirement of 5%, you would need a deposit of $15,000 ($300,000 x 5%) to purchase a $300,000 house in Perth.
However, If your lender requires a down payment of 20% or more on a $300,000 house in Perth, you will need a deposit of $60,000 ($300,000 x 20%). If the lender requires a higher down payment, you will need to save a larger amount for your deposit.
Can I buy a house with a 5% deposit?
The minimum down payment in Australia for a home loan is typically around 5% of the purchase price. However, it’s essential to remember that a down payment of 5% may not always be sufficient to secure a mortgage, and you may need to save a more significant amount to qualify for a loan.
Can I buy a house with a $10,000 deposit in Australia?
Some lenders may offer mortgages with a deposit as low as 5% of the purchase price, which may be achievable with a $10,000 deposit.
You can draft a savings plan to gather the required deposit. While doing this, consider an apartment for rent in Perth that’s in your best interest. You can find more information in the renter’s guide for Western Australia.
First home buyer tips
- Before signing, understand the lending criteria, such as your mortgage loan amount and home loan repayments.
- Find out other upfront costs such as WA house stamp duty, loan, application fees, etc.
- Use a guarantor if you have a low credit score
- Leverage the first home buyer grant
- Save as much as possible before making an offer on the house.
- A higher deposit is better to avoid paying a lender’s mortgage insurance.
Home grants in WA
Consider using the Family Home Guarantee – FHG if you are a single parent. With FHG, eligible single parents can buy or build a home with a lower deposit and not pay lenders’ mortgage insurance (LMI).
The government guarantees the remaining 18%, therefore, a 2% deposit is sufficient. To qualify for FHG, though, you need to make at least $125,000 per year.
If you are new to the property market, you can secure a first-home buyer grant and pay a 5% deposit. Additionally, you can check your eligibility for the First Home Guarantee program.