How Much Deposit Do I Need For A Home Loan?

One of the frequently asked questions in the loan process is how much deposit do I need for a home loan. As a first home buyer it’s helpful to know how much deposit you need to save for a home loan so you can get started with a savings plan. Minimum deposits vary between lenders and depend on the loan product you choose.

A deposit of 20% or more will help you avoid paying Lender’s Mortgage Insurance (LMI), however you can still get a home loan with a smaller deposit. The total amount of your deposit will affect the types of loans and lenders that are available to you, but there are options to cover every situation.

Kiwisaver increases deposit options

KiwiSaver is a voluntary work-based savings scheme designed to utilise the existing PAYE (pay as you earn) tax system. KiwiSaver includes a first home deposit subsidy which, after three years of saving, provides a first home deposit subsidy of $1,000 per year, up to a maximum of $5,000. Talk to your mortgage broker for more information.

Maximise your deposit

Your Loan Market mortgage broker will help you to maximise your deposit and make securing a home or investment loan at a competitive interest rate easier than you think. Fill in the form for a deposit make-over or call us at any time on 0508 722 205 (+64 9 526 0122).

Along with your deposit, you will also have to pay the standard fees and charges associated with your home purchase. If you don’t have all of the additional funds for fees, there are ways to also cover some or all of the fees and your mortgage broker should be able to show you your options when you are sorting out your home loan.

How Much Can I Borrow?

How much you can borrow (your borrowing capacity) will depend on many different factors, including but not limited to: income, credit history, income history and employment history. For a guide to how much you can borrow, check out our calculators but before hitting the open home circuit, it is worth obtaining a home loan pre-approval so you know exactly how much you can borrow.

Fees and charges

There are a range of fees and charges you may need to provide funds for when purchasing property. These include:

Bank/Lender fees:

  • Loan Application Fee
  • Valuations
  • Conveyancing/Solicitors Fees
  • Lenders Mortgage Insurance

In some cases, the above fees may be covered as part of your home loan application. Check with your mortgage broker which fees you will need to cover.

Other related fees:

  • Building Inspections
  • Insurance – building, contents, landlord protection, transit etc.

You can find a detailed description of the fees and charges you are likely to encounter in our comprehensive Fees and Charges section.

For more information on how much deposit

If you have a savings goal or home in sight, it pays to talk to a mortgage broker who can help you understand what your home loan options. Or call at any time on 0508 722 205 (+64 9 526 0122).

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