Feature article
Getting your money together: how much do you need?
Did you know you can buy a house with less than a 20% deposit?
AI summary
Understanding your deposit is key to buying a home, and you don't always need 20%. Options include a 5% deposit, which has strict criteria and requires Lendersâ Mortgage Insurance, or a 10% deposit, common for new builds. A 20% deposit typically unlocks better interest rates and cash back offers.
Banks use Loan-to-Value Ratios (LVRs) to manage lending risk. Remember to budget an extra $5,000-$7,000 for upfront costs like legal fees and valuations. Plan your timing carefully, especially when using KiwiSaver funds.
1. A 5% deposit
2. A 10% deposit
3. A 30% deposit
Some complicated terms
Cash back
Loan-to-Value Ratios (LVRs)
Example 1: Buying a $675,000 house on your own
Example 2: Buying a $875,000 house with someone else
When do you need the deposit?
Buying a new build
Buying an existing home
Other things to consider when paying your deposit
Before going to auction, you shouldâŠ
Make sure you leave a little money left over!
Financial Disclaimer
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