Please note - Due to the holiday season, builders and developers may be slower than usual in responding to any queries Close

How Much Of A Deposit Does A First Time Home Owner Need

If you’re consider getting into the market to become a first time home owner, there are many important considerations you will need to make. Among the most crucial of those is determining how much of a deposit you will need to build your first home.

Getting to a comfortable level, enough money for a home deposit is one of the many major accomplishments for first-home buyers. However, we’re never really sure what we should be aiming for. Through this article, we will provide you with some much needed clarification on this concern.

How Much Of A Deposit Will I Need?

While it will indeed vary from bank to bank, lender to lender, some banks will be prepared to provide you with a loan that sits around the 20% mark, while others will be less generous with as little as 5%

The More You Save

The more you are able to save the better, of coarse. Lenders will see this as appealing and attractive, and become more enticed to offer you an increased amount.

It’s well worth waiting an extra number of months and watching your amount grow.

If you aren’t able to save 20% of your mortgage, you may have to pay mortgage insurance. However, saving for a few more months may be worthwhile to avoid paying & have more money for the actual price of your dream home.

It’s vitally important to factor in these increases when you’re making decisions when and how much you would like to borrow.

What Other Costs Are Being Charged?

screen-shot-2018-07-23-at-6-31-08-pm

Largely depending on which state you’re building in, first-home buyer concessions can help cut down on a number of the additional costs typically associated with buying a home.

If you’re wanting to build in Victoria, there’s no stamp duty payable on any property up to $600,000.

For homes worth $750,000 and beyond, there is an expectation to pay duties around 5% of the total purchase price ($40,000 on a $750,000 home). With this knowledge, you can apply for that extra cost to be added onto your loan – meaning the amount will slightly increase.

Everything will add up, there a number of smaller fees which may fall under the guard. For example, conveyance, title transfers and alike may mean an additional couple thousand dollars you will require.

Construction Home Loan Versus Regular Home Loan

In short, a construction home loan can provide one of two options – a fixed or variable option. Again, this depends on the lender and the loan product. It’s a concern of doing your background investigation on which bank you go with.

Generally speaking, the majority of lenders should offer you the same or similar interest rates for either loan. The key difference between the two is that money drawn down in stages as it is needed.

How Can iBuildNew Work

Here at iBuildNew, we can provide you with all the information you will need under any and all circumstance! Whether you’re a first home builder, or seeking to purchase an additional property, we have you covered.

For further information regarding this or any other issue, don’t hesitate to speak with one of our home building professionals on 1800 184 284. You can also book a call online.

Having trouble understanding how to finance? Download our FREE guide today to get a comprehensive overview of what you should expect and prepare for.

iBuildnew Advisory Team
Let us do the legwork for you.
  • We’ll ask the right questions to better understand your needs
  • We’ll create a recommended shortlist ideally matched to you
  • We’ll answer specific questions or concerns related to home building, land purchasing or financing

Michael Poiveson

Armed with a background in multimedia and written communications, Michael has a zest for everything outdoor living, and can be found enjoying the serenity of occasionally overlong scenic walks.

About

iBuildNew is the market leading aggregator dedicated to residential home construction and land development. As an independent platform, iBuildNew helps Australians identify and compare new home designs, house and land packages and land estates. It’s the smart way home buyers, who are considering a new build, can find the ideal options to match their individual needs. Home building is a big decision, we make sure you get it right.

You may also like

Oct 31, 2018

Are We Moving Towards a Buyer’s Market?

With falling markets in Sydney and Melbourne and analysts such as Louis Christopher fro...
Read More
Mar 21, 2017

Home Builders Base Rates Explained

Planning your home’s design is a task that should not be taken lightly. The same goes f...
Read More
Oct 24, 2018

Moving Interstate? Ask your removalist these 8 quest...

Piece by WridgWays.   When moving interstate you want to make sure you're fully pr...
Read More
Jun 30, 2017

Do You Know The Changes Being Made To FHOG & St...

With a new financial year, comes new budget measures. There have been several changes m...
Read More
Dec 12, 2017

6 Ways To Stretch Your New Home Building Budget

When you start building it is likely that your lender will set you a budget or a cap to...
Read More
Jul 31, 2019

5 Tips on Downsizing Without Sacrificing Style 

Whether it be as you approach retirement or as you seek a simpler, less expensive way o...
Read More
Apr 29, 2022

The Benefits and Need-To-Knows When Building a New Home

The idea of taking your dream home and turning it into a reality is an exciting notion ...
Read More
Sep 01, 2015

New Home Builds & The First Home Buyers Grant

We are all happy to get a little bit of extra help when buying a new home. In all State...
Read More
Feb 21, 2018

Could a Low Deposit Home Loan Be an Option for Your ...

Whether you’re just starting to look to buy your first home, or you are looking for an ...
Read More
Nov 13, 2019

Stocking The Home For First-Time Buyers

That sense of relief you feel when you’ve finally overcome the massive hurdle of closin...
Read More
Jul 19, 2018

How Much Of A Deposit Does A First Time Home Owner Need

If you're consider getting into the market to become a first time home owner, there are...
Read More
Jul 18, 2018

New Build vs Old House | Which Should You Invest In

Investing in a new home comes as a fantastic opportunity for would-be property investor...
Read More
Jan 07, 2021

First Home Buyers: Securing A Home Loan Isn’t As Imp...

While the very thought of securing a home loan leaves many feeling intimidated and more...
Read More
Jul 09, 2019

5 Hidden Costs That Shock First-Time Homebuyers 

It’s no secret that buying a home is a huge financial investment. In fact, it’s usually...
Read More
Jun 08, 2017

Hidden Costs for First Home Buyers

Building your own house can be an exciting prospect. For starters, you get to own somet...
Read More
Oct 08, 2019

What To Look Out For At An Open Home

The open for inspection can be a critical time for most buyers as they survey their opt...
Read More
Nov 11, 2022

Build Costs Still Rising in a Housing Markets Spring...

  The spring selling season is now well advanced, with growing signs over October ...
Read More
Sep 28, 2022

Inflation Outlook Improves as Home Building Costs Ea...

  Australia’s inflation rate has surged to the highest levels since the early 1990...
Read More
Sep 25, 2019

Tips For Buying Off The Plan For First Home Buyers

The process of purchasing property can be a daunting time, especially for first home bu...
Read More
Oct 30, 2019

Getting A Pre-Approval Before Finding Your Dream Home

The journey from the borrower to a homeowner is an exciting yet daunting process that c...
Read More
Oct 05, 2020

Government Extends First Home Loan Deposit Scheme By...

This article will be updated as new information is released. On the 3rd of October, the...
Read More
Nov 24, 2017

Have You Considered Buying a Townhouse?

Have you considered a townhouse for your new home or investment property? Typically, wh...
Read More
Nov 01, 2020

Think Like A Buyer When Selling Your Home

When selling your home, it is a good idea to take a step back and look at your home fro...
Read More
Feb 03, 2017

The Parent Trap: Keeping Your Home Loan Under Contro...

This post was originally published at unohomeloans.com.au Building a new home is a drea...
Read More

Get more from

Browse New House Designs