If you’re looking to get into your own home here in the sunshine state, you’ll need to consider how much a deposit for a house in QLD is. If you approach a bank looking for a home loan, you’ll typically be asked to provide a 20% deposit. But when you work with No1 Property Guide, you won’t need to pay anything close to that.
Thanks to Darren Walters’ no or low deposit new home system, getting your own piece of the Queensland property market is easier than ever. All you need to do is fill in our pre-qualification form, and our New Home Consultants will be in contact to guide you along your homeownership journey.
Why Do Lenders Ask for a 20% Deposit for a House?
20% is considered the standard deposit for the majority of banks. This is a figure they use to reduce the risk for themselves in the event that you default and can’t pay off your loan.
Every time a lender gives out a loan, it’s an investment. You pay interest on the amount you borrowed and that’s how the banks make a profit. If you don’t make your repayments, the lender might lose money.
The larger the deposit on the home, the less likely the lender will lose money if you default on the loan.
However, a 20% deposit on a mortgage isn’t obtainable for most renters. On a $500,000 mortgage, that would be $100,000! Most renters don’t have that kind of money just lying around. This is where No1 Property Guide can help.
Darren created his no or low deposit new home system because he knew how difficult it was for renters to get into the property market. Using his specialised system, he has helped thousands of former renters achieve their homeownership dreams.
Do you Need to Pay A 20% Deposit For a New Home?
Whether you need to pay a deposit or not simply comes down to whether you learnt all of your factual options. Darren has helped thousands of renters achieve their homeownership dreams using his no or low deposit new home system. The only difference between them and you? They filled in our pre-qualification form and discovered their factual new home options. Now they are homeowners.
Use Lenders Mortgage Insurance For a Lower Deposit for a House
Often, when you get a mortgage with less than a 20% deposit, you’ll be required to get lenders mortgage insurance (LMI). This insurance is taken out by the lender and is paid by you. LMI protects the lender from any loss they’d take if you were to default on the loan. For a full breakdown of how LMI works take a look at our article “Lenders Mortgage Insurance – What is it & how does it work“.
Using the First Home Loan Deposit Scheme
The First Home Loan Deposit Scheme (FHLDS) is a government program that helps first home buyers get into their own home by reducing the necessary deposit down to 5%. If you qualify for this scheme, you won’t need to pay LMI. During our pre-qualification process, we’ll assess your situation to determine if you qualify. If you’d like to learn more about the program, read our article, “Now’s the Time to Get into the Property Market Using the 5% Deposit Scheme“.
Can I Use the First Home Owners Grant for my Deposit?
In short, yes.
The Queensland First Home Owners Grant (FHOG) can go directly towards your deposit. Many first home buyers use this grant as an opportunity to become homeowners. The QLD FHOG is $15,000. This can go towards your deposit or cover legal fees and costs. Get all the necessary information about the FHOG at “First Home Owners Grant QLD – Everything you Need to Know“.
Let the experts here at No1 Property Guide show you your factual options so you can start living life as a homeowner. Start the process today. Fill in our pre-qualification form and our New Home Consultants will be in touch to discuss your next steps.
What Are Genuine Saving & How Do They Affect My Deposit
There are some conditions to the kinds of funds that’ll be accepted for a deposit. They’ll want to know how the funds were acquired and if they’re ‘genuine’.
Genuine savings serve as an indicator of your financial discipline. It helps lenders assess whether you’re capable of making your repayments. They want to see that you’ve saved up for the deposit yourself. Bank statements should be able to provide enough information on where the money came from.
If you recently received a lump sum payment from somewhere other than your employer, the lender is unlikely to consider this as genuine savings. These include:
- Gifts
- Dividends
- An inheritance
- Tax refunds
The precise eligibility criteria for genuine savings differ between lenders and you’d need to talk to them individually if you want to know their specific policies. Alternatively, you can let the experts at No1 Property Guide take care of it for you.
The amount you’ll need for a deposit for a house in QLD will depend on your circumstance. Without the right knowledge and experience, It’s unlikely you’ll get the best deal. And this is where we can help.
Thanks to Darren’s no or low deposit new home system, we’ve been able to help thousands say goodbye to the rental nightmare forever. If you want to join them and achieve your homeownership dreams, fill in our pre-qualification form and start the journey today.
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