What do you need for a first home loan?
The most important things to think about are your deposit amount and having enough money for the associated costs of buying.
A 20% deposit is a good point to aim for, but this isn't always achievable. There are many options to help you buy with less than a 20% deposit, including Lender's Mortgage Insurance (LMI) or a Family Pledge Loan, or guarantor loan.
Check out our How-To Guides on buying your first home and the associated costs of buying now.
How much deposit do you need for first home buyers?
Obviously, the larger the deposit, the better for you, as there will be less for you to repay. However, generally most people aim for a 20% deposit amount as a starting point.
Falling short of reaching that 20% deposit amount, there are still options to help you buy your first place.
Check out our guides to Lender's Mortgage Insurance (LMI) and Family Pledge, or guarantor loans now.
How do I qualify for a 5% deposit mortgage?
If you're only able to save a deposit amount of 5%, there may be an option for you to still secure a home loan.
One option is to accept the fact that you'll have to pay Lender's Mortgage Insurance (LMI). LMI is a one-off, non refundable, non transferrable premium that is added to your home loan.
Another option is to use a Family Pledge, or guarantor loan. This type of loan allows you to use the equity in your parents' home as security instead of your full deposit amount.