At Badu Capital, we understand that saving a deposit for your first home is a substantial undertaking. As a general rule, most lenders like to see six months of genuine savings and require a minimum of 5% as a deposit for first home. We have access to a range of products that will suit many types of situations and we can also assist you in your savings goals.
It’s common for first home buyers to have their parents assistance in securing a home loan. It doesn’t necessarily need to be a cash gift and Badu Capital has access to a number of home loan products that allow for use of equity in your parent’s home as security against your new home. This significantly reduces the deposit required – possibly to even no deposit – as well as saving on the amount of mortgage insurance to be paid.
Flexible Deposit Home Loans
The majority of lenders require a minimum of 5% genuine savings as deposit to purchase your first home. In addition, you must have the 5% deposit amount in your bank account for at least three to six months to prove to your lender that you’re able to save. At Badu Capital, we understand you may not always be able to show a genuine pattern of savings behaviour or have the full 5% saved. Our brokers will work with you and our extensive panel of lenders to find a home loan that’s right for you. We also have access to flexible deposit home loan products that may allow you to get into your new home without genuine savings, or with less than the full 5% saved.
Should you need to save money for a deposit, these handy tools from ASIC MoneySmart will get you started. Find out how long it will take to reach your savings goals and what steps you’ll need to take to get there.