You will usually need to pay Lenders Mortgage Insurance if you’re borrowing more than 80% of the property value.
To avoid LMI, you will need a deposit of at least 20%.
However, it is difficult to save a larger deposit, especially in a property market where property prices are rising.
You can use our ‘Buy Now or Save More’ calculator to see which option is feasible for you.
There is an option to capitalise LMI where the lender will add the cost of the LMI premium to your home loan, allowing you to get approved for a home loan with a lower deposit.