What’s the minimum down payment for a house?
There is no established minimum down payment for a house. Although this is true, most lenders do require some kind of down payment or deposit on a home. With that being said, there are no deposit loans, even if they are hard to qualify and apply for. 100% financed loans are frowned upon by banks and other credit institutions because they hold high risks and little guarantees.
Although some banks do offer the ability to use no deposit down payments for homes, it is best to put some money down. This can decrease the repayment amount and lower the terms over time. The average minimum down payment for a house is 20%, but it is not a standard. However, you will have the best luck if you save 20% of the home’s price.
Note that you will need more than just a deposit. Actually, it is best to have savings ready for home repairs. Experts recommend saving an average of 10-20% of a paystub, which usually arrives fortnightly in your bank account. Saving for a down payment on a house is easier than qualifying for a no deposit home loan.
Minimum Down Payment for Homes Conclusion
Banks and lending institutions are the ones that set a minimum down payment. That being said, there is no standard in Australia. However, on average, lenders like to see a 20% deposit. This is an expensive deposit though that can take decades to save. Instead, other options are possible like little to no down payments on a house.