How much of a down payment do I need to buy a house/how much mortgage can I afford?
This very day, we are going to demonstrate to you exactly how to calculate your home loan deposit
In point of fact, we have assisted over a thousand first-time home buyers with the purchase of their homes by using this very same method.
And there's one other thing I should mention:
This is an extremely straightforward calculator.
If you're not extremely technically savvy, like I am, you're going to adore the calculator and the straightforward instructions that are included in this guide.
Let's get started
Deposit Calculator 101
In this part of the guide, I'll walk you through the fundamentals step by step.
This chapter will put you on the right path if you're unsure whether or not you have enough money saved up for a down payment on a house.
Then, in subsequent sections, I'll walk you through a variety of more advanced strategies and methods.
What is the amount of my house deposit?
Your contribution toward the purchase of your first home is known as the home deposit, and it consists of both the initial deposit that you make to the bank (which ranges from five to eight percent of the home's purchase price) and the savings that you set aside to cover additional costs, such as the stamp duty and the fees charged by the solicitor.
To be able to afford a home, you will need 8-10% of the property's purchase price saved up in total savings.
For instance, if you were interested in purchasing a home that cost $400,000, you would require approximately 10% of the purchase price, which is equivalent to $40,000.
This includes the deposit required by the bank (also known as the down payment on a home loan) in addition to other costs such as stamp duty.
Manually calculating this is possible by obtaining the purchase price, multiplying that number by the deposit amount, and then dividing that result by 100.
Or 400,000 x 10/100 = $40,000
(Or, if you prefer, you can use our nifty deposit calculator up above.)
Does my house deposit include stamp duty payments?
You will be required to contribute stamp duty costs as part of the deposit, and the money for these costs cannot be borrowed from the bank.
To put it another way, the stamp duty cannot be added to the amount of your loan; rather, it must come out of your savings.
The good news is that in some states, the payment of stamp duty is not required for individuals purchasing their first home.
You can use our stamp duty calculator to determine the exact amount that you will be responsible for paying in your circumstance, but we have also included a table below that confirms which states will either waive or discount stamp duty for first-time home buyers.
If you are a first-time buyer in Queensland and you purchase a home for $300,000 or less, you will not be required to pay stamp duty on the transaction. Consider the following scenario as an illustration.
How much of a down payment do I need for a home that costs $300,000?
If you were a first-time buyer in Queensland and wanted to purchase a home for $300,000, the state would exempt you from paying stamp duty on the purchase; however, the government would still charge you a transfer fee of 1 and registration fees of $197. In addition, you will need to budget an additional $500 for building and pest inspections, along with your bank deposit and the conveyancing fees of $1,500.
The full deposit, which takes into account all associated fees, amounts to approximately 8% of the purchase price, or $25,038, according to the following calculation:
- Bank deposit $22,200
- Transfer Fee 1
- The cost to register is $197.
- The estimated cost of the conveyancer's services is $1,500.
- The building and pest fee is an estimated $500.
If it is your first time purchasing a home, you will need a deposit of at least $25,038 for a home that costs $300,000. If it is not your first time purchasing a home, you will need to pay an additional $3,000 in stamp duty, which means you will need a deposit of at least $28,432 for a home that costs $300,000.
Why is it important to know how much my house deposit is?
The very first thing you should do is create a budget...
In point of fact, the amount of money you have stashed away is almost always the determining factor in how much you are able to spend.
And it is impossible to begin one's search for a home before this information is known.
What are the steps for using the deposit calculator?
We have made every effort to ensure that the down payment calculator is as user-friendly as possible; therefore, all you need to do to determine your house price is follow these steps.
- ☑️ Step #1 : Please indicate how much money you have saved up that can be applied to your deposit. For the purpose of this illustration, we used $30,000.
- ☑️ Step #2 If you so choose, you can adjust both the loan term and the interest rate. Both of these were left unchanged in the example that was presented earlier.
- ☑️ Step #3 Leave the deposit amount at something like 20% of the total if you want to put down a larger deposit. But if you want to try to make the money go further, reduce the amount of the deposit to between 8% and 10% of the total. As an illustration, we chose to make the initial deposit equal to 10% of the total amount.
- ☑️ Step #4 Examine how much money you have available to spend in comparison to how much it would cost you on a monthly basis to repay a loan. Woo, as you can see here and based on your deposit, you can roughly afford a purchase price of $300,000, and your monthly repayments would be around $1,290 if you chose to finance the entire amount.
The calculator is just for illustrative purposes only, and the final house price would be determined by your income (aka your borrowing capacity) so if you need any further info on this, get in touch with our team or give us a call on 1300 088 065 to chat through your situation
Return to our incredible calculator for deposits located up top.
In order to buy a house, how much of a down payment do I need?
A good place to begin is by formulating a rough budget of how much money you want to spend on your new home, along with an estimate of the amount that you are capable of borrowing.
If you don't know this, you won't have any idea about how much money you actually have available to spend because you'll be guessing in the dark.
It's common for first-time buyers to enter the housing market with champagne tastes but a beer budget (like I did), so it's a good idea to talk to a mortgage broker early on and get an idea of what your borrowing capacity actually is. First things first, let's take a look at how much of a down payment you need to buy a house, and then we'll discuss your ability to borrow money later on.
Aim to have savings equal to between 8 and 10 percent of the total price of the property.

Aim to have savings equal to between 8 and 10 percent of the total price of the property.
Owing to the fact that this will cover all costs associated with purchasing At least five percent of that total should have been in your possession (in the form of funds in an account) for the past three months so that creditors can use this as evidence.
It is possible that if you have a guarantor, you will be able to purchase a property with no deposit at all, or that you will be eligible for a lower deposit. Read through these particular circumstances, or skip ahead to the next point I'll be making down below.
What you absolutely must be aware of:
- RIGHT HERE IS WHERE YOU SHOULD BEGIN: Determine how much you are capable of borrowing.
- Shoot for eight to ten percent of the total purchase price.
- At least five percent of the total purchase price should be set aside for at least three months.
- Even people who are currently renting will be required to have a down payment in order to purchase a home.
More information for first-time homebuyers can be found here; at what stage are you in the purchasing process?
House deposit amount examples
You might have already begun your search for a home and be wondering, "How much of a down payment do I need to make on something that costs $350,000... Or what about $450,000?"
You will be required to pay for lenders mortgage insurance if your down payment is between 8% and 20%, which means that it is less than 20%. Remember that the banks that lend 95% loans will lend this amount including LMI, so it will usually work out to be a 92% LMI loan. This indicates that you will need a minimum deposit of 8% in addition to stamp duty and other costs.
If you want a more accurate estimate, you can use our Deposit Calculator; however, if you just want a general idea of what you need (without taking into account other deposit costs such as stamp duty, conveyancing and legal costs, etc.), you can use this table as a guide:
Continue reading to learn: How can I get out of paying LMI?
Can I buy a house with no down payment at all?
Yes, in a word is the short answer.
When it comes to purchasing your first home with no down payment required, there are a number of different choices available to you.
There are a variety of choices, such as the First-Time Homebuyer's Grant, a variety of government concessions, and a few different options for home loans that are 100% financing. Therefore, if you are fortunate enough to meet the requirements, purchasing your first home may be surprisingly simple.

Can I buy a house with no down payment at all? Yes, there are still a few options available for loans with a LVR of 105%.
In a nutshell, these are what they are:
Continue reading for more information regarding guarantor home loans [how to borrow 105% LVR].
What is the bare minimum required for a down payment on a house?
In most cases, the minimum deposit required for a home loan is between 8 and 10 percent, as this amount is sufficient to cover the additional costs that are associated with the transaction.
Although a deposit of 20% is preferred, lenders will typically accept deposits ranging from 8% to 10%. They will want to see at least 5% of the purchase price held for three months or longer and as genuine savings. This figure is derived from the previous one. Stamp duty and other costs, on the other hand, do not require the holding of funds for a period of three months or longer.
We recommend that the minimum deposit be between 8 and 10% because anything lower than that will make you feel as though you're pushing it.
When purchasing a home, you shouldn't forget that there are a ton of additional costs, even for the seemingly insignificant things like buying new furniture and paying for moving expenses.

Your timeframes will determine the amount of savings.
Read more here for a comprehensive explanation of the factors that go into the calculation of real savings.

Genuine savings are defined as those that have been put aside or held for more than three months. It's not always necessary to have them in order to buy your first house; for more information, check out this article or get in touch with our staff so we can talk about your specific circumstances.
The same holds true for people who are renting; even if they can provide evidence of their past payment history, they will still be required to have a deposit saved up before they can proceed.
You can expedite the process and get a head start on your savings in a few different ways, including the following:
Continue reading for more information on how to save for a house deposit.
What is the maximum amount that I could borrow?
It is important to have a clear idea of your borrowing capacity in order to begin researching and understanding what types of properties you can afford. If you are aware of this, it will be easier for you to avoid overextending yourself in the future.
When I was looking for my first home, I had a purchasing price range in my head of approximately $450,000 to $500,000 for a house.
So there I was, looking through real estate listings without end. com for my ideal home in Gold Coast, which is a house with three bedrooms, one bathroom, and a yard.
Several months later, I started doing research on finances and contacted a mortgage broker about my ability to borrow money, only to find out that the amount I could borrow was limited to $297,000 because of my income at the time as well as the deposit I had saved...
I was reduced to shambles. I was trying to target, but the price was completely out of my range.
I came to the conclusion that the only type of housing in the suburbs that I could afford was a studio or a one- or two-bedroom apartment.
When I think about it now, this turned out to be a blessing in disguise because it forced me to concentrate more on building up my savings for a larger deposit and searching for the right kind of home that was within my price range.
Don't go into it without first finding out how much you are capable of borrowing; it will save you time and help you keep your expectations in line with what you can actually afford.
You are in luck because there are a few simple strategies (some of which I used) that can assist you in expanding your capacity for borrowing.
- Lower the total amount of credit that is available to you; get rid of unused credit cards, as having them in your possession will count against you even if you don't use them.
- Do not make an effort to avoid paying taxes; rather, report all of your income and take the full deduction for it.
- Divide your obligations and costs with your partner, as the saying goes, "sharing is caring."
- Determine which financial institution best suits your needs [Conversation with our staff]
- Getting defaults removed from your credit report by paying for them and then contacting the company to have them removed
- Request a raise in compensation, as there is no better time than the present to do so.
Learn more about your home financing options by reading the following:
How much does mortgage insurance cost for lenders?
When a buyer cannot pay a deposit equal to 20% of the purchase price, the lender will require the buyer to obtain mortgage insurance.
Consequently, if you intend to keep your 10% deposit, you can count yourself among the participants.
It is difficult to give an exact figure when it comes to LMI because of all of the variables and differences that exist between each buyer; however, to give you an idea, the cost of LMI can range anywhere from ,000 to $10,000 for a property that is $400,000 and has a loan-to-value ratio of 90% and a 10% deposit. 000 depending on the lender
- The LMI premium varies from lender to lender, and it also depends on the loan-to-value ratio of your particular mortgage. Take a look at our LMI calculator right here and evaluate how different banks fare in terms of their LMI premiums.
- Accountants, medical professionals, and pharmacists, among other professions, are among those who can borrow the full purchase price of a property and are eligible to have their LMI fees waived. Have a look at the complete list that we have here.
- Shop around for the best price on LMI from different lenders, as not all LMI is created equally and the price difference between lenders can be quite significant.
More information can be found here: LMI Calculator [Calculate the costs of your lender's mortgage insurance].
What other expenses are associated with purchasing a home?
Unfortuitously, there are a number of other hidden costs associated with purchasing a home, in addition to the sum of money needed for the initial deposit and the insurance required by the mortgage lender.
However, if you are able to estimate these costs in advance, you will be able to incorporate them into your savings strategy.
Now, let's go over the most important ones that you need to have prepared.
- Costs of borrowing – Be aware that even with loans that do not charge origination fees, it is likely that you will still be required to pay settlement and documentation fees. The application fees are typically in the range of $500 to 0, but can go up to more than a thousand dollars depending on the type of loan and the lender.
- Taxes and fees imposed by the government The government always seems to find a way to sneak in some additional taxes and fees, such as the Registration Fee. These costs differ from state to state, but in Queensland, they are typically in the range of $187, although it depends on the type of registration. On top of that, there is a Transfer Fee that must be paid. Transfer duty is typically required to be paid in the amount of 7 for the purchase of a home with a value of $400,000. Find out how much your transfer duty will cost you here.
- Stamp duty: If you're buying your first home in Brisbane, the good news is that you won't have to pay stamp duty on homes that cost less than $500,000 if you're a first-time buyer. Stamp duty fees will become a reality for you if this is your second or third property, which is unfortunate. You can anticipate paying approximately ,750 in stamp duty fees on a home that costs $500,000.
- Rates for the council and the water company – each council has its own unique set of rates Depending on the suburb, estimates range from $1,000 to $2,000 per year.
- Fees for the strata or body corporate If you are purchasing a condominium, apartment, or townhouse in a complex, you will be required to pay the strata fees. These costs are typically collected on a quarterly basis in order to ensure proper upkeep of the complex. IMPORTANT TIP: Before buying your apartment get a copy of your Strata report to ensure that the current report isn’t requesting huge fees from owners – as if there are issues like water damage or structural problems these really could add up and actually be a deal breaker for you before you buy
- Home and contents insurance – Don't even try to save money on this, as it will save you money in the long run if something unfortunate happens to your belongings or your home. Taking care of this expense as soon as possible is highly recommended because of its significance. It is imperative that you acquire insurance as soon as possible after the signing of the purchase agreement, which takes place at 5 p.m. We at Hunter Galloway have a working relationship with Allianz and are able to assist you in arranging Home and Contents Insurance. Allianz provides our customers with 90 days of free cover until settlement.
- Fees for legal services: You will need to pay a legal professional or a conveyancer to carry out title searches, prepare a strata report (if you are purchasing a townhouse or unit), review a contract of sale (not always required in Queensland), and arrange settlement particulars. Conveyancers, on the other hand, typically charge a flat fee, whereas solicitors more commonly bill by the hour, with the total amount paid being proportional to the degree of difficulty of your purchase. The price ranges from approximately $1,000 to $2,000, and it is dependent upon the searches that are carried out. Learn more about the costs of legal representation here.
- Building and Pest reports – This one is so important and has prevented me from purchasing properties that are total dumps. Carry out these steps before purchasing the property. The good news is that you can save a few hundred dollars by getting a combined building and pest report for around $500-600. A typical building inspection for a home with four bedrooms can cost between $400 and $500, and an inspection for pests can cost between $200 and $300. Continue reading for more of my advice regarding building and pest reports.
- Costs of moving, including but not limited to fees for removalists and costs associated with the purchase of all of those additional little bits and pieces, for a local move (i.e. e Home Improvement Pages suggests that you set aside anywhere from $300 to $3,500 (within the same city) to pay for home improvements. The cost of removalist services can be several thousand dollars higher for moves that take place between states.
Continue reading to learn about the 11 hidden costs of purchasing a home.
What are some different ways that I can put more money away?
Okay, so in terms of your finances, you've probably started to become aware of all of the additional costs that are associated with purchasing, and it adds up pretty quickly. But if you start putting even just one of my money-saving tips into action, you're going to be able to turbocharge your savings and make it much simpler to put money away.
- During the time that I was putting money aside for a house, I became, in some respects, the miserliest person on the face of the earth. Now, because I don't want you to start getting that reputation in your social circles, I came up with some stealthy ways to do this. Please don't tell anyone about this. For instance, you could swap lunch catch ups for coffee catch ups, which would save you $30; you could also stop ordering a drink with your meal, which would save you ; you could eat at home before going out for the night, which would save you $40; and you could stop buying coffee every day and make it at home, which would save you $25 per week. You can save between $50 and per week by bringing your lunch to work, and you can save $5 per day and $25 per week by finding free parking whenever possible and walking an extra 10 minutes. All of these little things add up, and if you just focus on the ones I listed above, you could easily save almost an additional $200 every week.
- Spread out your savings. It's great to have a singular focus on your savings for a house, but you'll need to be able to afford other things as life continues to throw them at you. For instance, you can save money toward a variety of different goals, such as purchasing a car or taking a vacation with your family. Even if you save only $200 per month, you will still have $2,400 at the end of the year to put toward your other goals. Establish multiple accounts so that you are able to easily monitor the total amount of your savings.
- Pay special attention to your credit cards, and focus on reducing your debt as much as possible while also making an effort to avoid accumulating any additional debt. Keep in mind that payment services such as AfterPay and Zippay can easily add up to a significant amount of money. You should make it a goal to go without using any of these services for a few months and just concentrate on paying them off. You can learn more about lowering your debt here.
- Make the switch from new to used, and you'll not only help the environment but also save money by shopping at thrift stores and consignment stores. This has been my go-to resource for everything for a good while now. You can save SO much money shopping at op shops, and it's not any different than shopping anywhere else; I've saved money on everything from buying furniture for my entire house to buying electrical appliances and toilet paper. A piece of advice I have for you is to check out the local recycling centers, as they frequently have larger pieces of furniture. I also buy all of my glassware from thrift stores because it's usually of a high quality and only costs about fifty cents a piece.
Find Out More Here: The Best Ways to Save for a House Deposit
Do I need to get pre approved
If you are going to auction, then the answer is yes; however, if you are not, it might be best for you to speak with a mortgage broker to confirm your potential to buy a home.

What exactly is pre approval, and is it something you need? The correct response is probably not, but if you want to learn more, including the most common errors and additional reasons why, click here.
It is difficult to know exactly how much the bank is going to lend you, the actual amount of the deposit that you are going to need, and what your cash flow is going to look like after you have purchased your new home without speaking with a mortgage broker.
If you are not aware of your potential to purchase a home, you run the risk of missing out on the house of your dreams due to the fact that your financial situation is not in order in a real estate market that is highly competitive.
Or, to make matters even worse, picture the scenario in which you won an auction and put down a 5% deposit, but then, after applying for the loan, the bank denied it on the grounds that your employment situation wasn't stable enough... What a catastrophe!
Due to the fact that there are no cooling off periods for auctions, there is no way that you will get your deposit back in this scenario. As a result, you run the risk of losing your $20,000 deposit.
Continue reading to learn more about what a pre approval is and why you should get one for yourself.
Bonus: First Home Save Scheme (FHSS)
The First Home Super Saver Scheme, or FHSS for short, is a government program that is designed to assist you in reducing the amount of time it takes to save up a deposit in preparation for the purchase of your first home.
The FHSSS makes use of the voluntary contributions made to your superannuation fund before they are taxed. After that, you will have the option to withdraw these funds, which you can put toward the down payment on your first home at a later time. Using the First Home Buyer Super Saver Scheme, there are caps placed on the amount of money you can set aside for a down payment. There is a limit of $15,000 per fiscal year that can be contributed voluntarily, with a total cap of $30,000 for all contributions combined.
In order to participate in this program, you need to ensure that you meet all of the requirements listed below.
- You must be making your very first real estate purchase. Because of this, it is impossible for you to have ever owned property in Australia.
- You must be at least 18 years old to participate.
- You are required to have a plan in place to occupy the home full-time for a minimum of six months within the first year that you own it.
- You can't possibly have utilized the FHSSS in the past.
If you have made a non-concessional contribution, the First Home Super Saver Scheme will allow you to withdraw up to one hundred percent of the funds in your account. If you made a contribution that qualified for a concession, you could free up to 85 percent of the tax.
It is essential to keep in mind that the maximum amount you are capable of releasing is not necessarily the same as the amount you will actually get. The ATO will deduct the appropriate amount of tax from your payment and then offset that amount against any outstanding debts owed to the Commonwealth.
For additional information regarding the First Home Super Saver Scheme, please refer to. Please select this option.
Next steps
If you are interested in obtaining a pre-approval or purchasing a home, speak with one of our knowledgeable mortgage brokers who will assist you in navigating the subsequent steps of the home loan process in Brisbane.

The team from Hunter Galloway Mortgage Broker in Brisbane is prepared to assist you. We have a staff of professionals who specialize in home loans.
We provide you with the actual strategies that have assisted other home buyers just like you in securing a property when there were five other offers on the table, and this is just one of the many ways that Hunter Galloway assists home buyers in gaining an advantage in this competitive market. Send us an email or give us a call at 1300 088 065 if you have any questions.
Read More:
- Home Loan Extra Repayment Calculator
Note: The information that has been provided in this article is meant to provide illustrative examples based on the stated assumptions and the inputs that you have provided. The calculations should only be taken as rough estimates, and it is strongly recommended that you discuss the specifics of your situation in depth with a mortgage broker.

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