Saving a deposit for a home is not the impossibility that many would have first time buyers think.
Much of the media analysis on home deposits is based on an assumption that a 20% deposit is required, but there are government schemes now which allow for deposits as low as 5% without requiring lender’s mortgage insurance (LMI).
According to Compare Club home loan expert broker, Sophie Matthews, some lenders are now accepting a 15%.
RateCity research director, Sally Tindall, says a handful of lenders, including St George and Bank of Melbourne, will waive LMI costs for first home buyers with deposits between 15% and 20%.
She says some banks (including Westpac) will consider waiving the fee for certain professions such as doctors and nurses.
If you do manage to snare a loan with a lower deposit, Tindall says to keep in mind the lowest interest rates are usually offered to those with the highest deposit.