Buying our first PPOR....

[holtk5]

Hi all

Just a quick one..
If we wanted to borrow $260,000-280,000 for our first PPOR, how much of a deposit are we needing?
Thankyou
Kate

 

[Simon]

20% is usual. less is possible with LMI fees being charged, even 0% is doable these days.

20% is cheapest for a homeowner.

 

[Medine]

Hi Kate,

Don't forget that you also need to cover costs including stamp duty. A generous rule of thumb is 6% for all costs.

So you need at least 5% for the bank and 6% for costs. So your savings/equity/FHOG need to be 11% of the value of the property.

Or, as Simon suggests, 26% if you want to avoid LMI costs.

Cheers, Medine