You are looking to buy your first home or apartment in Sydney or NSW. What is the absolute minimum deposit required?
In order to have the minimum deposit we need to borrow up to 95% of the value of the property. This requires the payment of a lenders mortgage insurance (LMI) premium. This premium gets worked into the loan and is paid off over the life of the loan.
A minimum deposit will then vary on the purchase price. Here are some examples of what different deposits in NSW can get you:
Note that these figures are for owner-occupier lending and it is assumed that the buyer qualifies for the NSW government stamp duty concessions for first home buyers.
Investment lending is a little more complicated since lenders have varying policies on how much they will lend. Most will only lend to 80% loan-to-value ratios.
Do you have a deposit saved? Contact us to get started with a pre-approval.
The NSW government announced this week that they are abolishing stamp duty for first home owners for new and existing purchases up to $650,000 in value. Stamp duty has been reduced for first home purchase of values between $650,000 and $800,000.
In addition, the duty on mortgage insurance has also been abolished which could save in the order of $3,000 when borrowing up to 95% of the property value.
This is a great initiative and should help all those that are saving to get their first home in Sydney.
More details can be found on the office of state revenue web site.