As a first-time home buyer, saving as much as possible will benefit you both now and in the future. A larger deposit allows more flexibility in the types of properties you might be able to afford;
Negotiating a lower interest rate requires you to have a large down payment. The larger your deposit, the less risk you represent to lenders. This gives you real bargaining power.
A smaller loan and lower interest payments mean you’ll pay less in interest over the lifetime of a loan. We have a Home Loan Repayments Calculator to help you see the difference.
If you have a deposit of 20% or more on your home loan, you can avoid paying lenders mortgage insurance (LMI).
A larger deposit gives you more options to get the right loan and save money in the long term.
There is a generous selection of financial support options available to first home buyers, including grants, loans, and savings incentives.