When it comes to home loans, everyone starts speaking a whole different language. So let's break down one of the key concepts of a home loan - the deposit.
- A home loan deposit is your initial contribution to the purchase price of a property
- Lenders normally require your initial contribution (i.e a deposit) to be at least 20 per cent of the property price.
A home loan deposit is your initial contribution to the purchase price of a property. It means that you own a small portion of the home. Woo hoo! It may be small, but hey - you’re one step closer to posting that highly sought-after Instagram in front of the SOLD sign. Isn’t that the real reason we buy property? It’s all for the gram.
Lenders normally require your initial contribution (i.e a deposit) to be at least 20 per cent of the property price.
If you’re just trying to get your head around this, check out home loans from UBank’s UHomeLoan - Discount Offer and loans.com.au's Smart Home Loan 80, which both require a 20 per cent deposit (or 80 per cent loan to value ratio).
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