How much deposit do I need to buy a property?
While a good general rule for anyone planning to live in the property they buy is that they'll need a deposit of ten per cent of the purchase price, this can vary depending on a number of factors.
These include the type of home loan you are seeking, as well as the lender you choose. Anyone purchasing a property for an investment is generally required to provide a deposit worth ten per cent of the purchase price.
Your deposit may come in the form of savings - usually from at least the past three months - as well as contributions from other avenues, which can include family assistance, gifts or bonuses.
What happens to the deposit paid to the agent?
When a contract is signed, a ten per cent deposit is usually required. In some cases, an agent may ask for a smaller amount to be paid when an offer is submitted.
When you pay your deposit to an agent, it will be paid into a trust account they operate. No interest is payable from this type of account.
