According to new study, it takes an average of five years for young couples to save for a 20% down payment on a property. But what if I told you something crazy? We know how to cut that timeframe in half…
Real talk: saving for a down payment on your first house has never been more difficult.
The typical period in Sydney is 8+ years. 6.5 years in Melbourne. 4 to 6 years in most other parts of the country.
So it can take a long time to get into the property market. That is, unless you know a finance specialist who can help first-time buyers with just a 5% down payment and avoid paying any lender’s mortgage insurance.
And how do we go about doing that?
If you’re eligible, we can connect you with the First Home Program.
If you are not sure you are interested in going down the 5% deposit path, consider the following statistics:
According to Domain data, first-time home buyers nationwide are currently taking longer to save for a 20% house loan deposit than they are to save for a 4 x 5% deposit.
- Sydney: 8 years and 1 month (20%) vs. 2 years for a 5% deposit
- Melbourne: 6 years and 6 months (20%) vs. 1 year and 7 months for 5%
- Brisbane: 4 years 10 months (20%) vs. 1 year 3 months for 5%
- Adelaide: 4 years and 7 months (20%) vs. 1 year and 2 months for 5%
- Perth: down to 11 months after 3 years and 7 months (20%). (5 percent )
- Canberra: 7 years and 1 month (20%) vs. 1 year and 9 months for 5%
Book a Call to know more information about the First Home Guarantee program!
A little bit information about the First Home Guarantee scheme (formerly known as the First Home Loan Deposit Scheme). It allows eligible first-time home purchasers to build or buy a home with just a 5% deposit and avoid paying lenders’ mortgage insurance (LMI).
This is because the federal government guarantees up to 15% of the value of the property purchased (to a participating lender).
Depending on the home price and deposit amount, not paying LMI can save purchasers anywhere from $4,000 to $35,000 (it’s also worth mentioning that property price restrictions apply).
However, spots in this plan are limited and will be filled on a first-come, first-served basis. The spots will be filled in no time, so if you’re interested, get in touch with us as soon as possible.