How much deposit do I need?

Saving for a deposit can be one of the biggest hurdles to home ownership. Accumulating savings is hard work – and takes time and commitment. The amount of deposit required by lenders will vary, depending on the lender's loan products, your situation and how much you need to borrow.

Keystart's low deposit means our customers can get into their own home sooner. With a Keystart home loan deposit starting as low as 2%, it may not take you very long to save the required amount.

If you meet the criteria for a Keystart home loan, you could apply for a home loan with a deposit from as low as 2%, that is 2% of the purchase price of a property. For example, if you were looking at a $450,000 home, a 2% deposit would be $9,000.

Unlike other lenders, we don't charge lender's mortgage insurance so you have lower entry costs and fewer barriers to get started on your home ownership journey.

Remember there are other costs beyond deposit

As a rough estimate, you may need around $5,000 to cover other home ownership costs like loan establishment fees, settlement agent fees, shire and water rates.

Our vision is to make the dream of affordable home ownership a reality for more people with low deposit home loans to get you into your own home sooner. In order for Keystart to offer low deposit home loans, we have an interest rate policy that enables us to manage our lending risk responsibly.

When researching interest rates with other lenders you may find there is a requirement for a higher deposit (5 ,10, or 20%) before you would be eligible for a loan with that lender. It's important to investigate the loan conditions carefully, as advertised interest rates are only one part of the story. Using the same example of a $450,000 home, a 20% deposit would amount to a deposit of $90,000. Lenders with lower deposit requirements will most likely charge you lender's mortgage insurance if your deposit is less than 20%, costing you thousands.

Waiting to save a larger deposit represents a trade-off in the time spent renting rather than living in your own home, but may open more options in terms of a range of lenders.

If you're a first home buyer and you're thinking of building a new home, you may be eligible for the State Government's first home owner grant. These funds, currently $10,000, can be used as your deposit. Even if you're not thinking of building a new home, if you're a first home buyer, you may be eligible for a transfer duty concession.

If you think you're ready to get started, you may find it valuable to investigate your options with home loan lenders. Find out the deposit requirements and then you can weigh up your choices.

If you want to find out if you would qualify for a Keystart loan, head to Do I qualify and complete a five-minute pre-qualification.