Minimum Deposit To Buy in NSW
Updated: Oct 9, 2019
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 purchase prices and minimum deposits:
$450,000 requires $40,000 deposit
$550,000 requires $50,000 deposit
$655,000 requires $60,000 deposit
$690,000 requires $70,000 deposit
$725,000 requires $80,000 deposit
$760,000 requires $90,000 deposit
$790,000 requires $100,000 deposit
$850,000 requires $110,000 deposit
$920,000 requires $120,000 deposit
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.