One of the questions we are commonly asked by home buyers is how much deposit do I really need? It’s a common belief that you need to have at least a 20% deposit, but is that fact or fiction? It’s fiction! We can get you into your own home with only a little deposit!
How can I purchase a home with a small deposit?
Move Homes has partnered with the Home of My Own Foundation to provide eligible clients up to a $2,000 grant. This not-for-profit was established to help people break the rent cycle, with the grant being used as a deposit. Each applicant is assessed on their unique circumstances, so you can read our blog about HMO on this page.
It sounds too good to be true. What’s the catch?
The catch is that you have to build with Move Homes (so, it’s not really a catch!). The Foundation is supported by many of Perth’s leading building suppliers, knowing that more people building new homes means more work for their trades. It’s a win-win situation for everyone.
Why do people say I should have a 20% deposit?
Historically, most banks preferred their clients to have a 20% deposit so the client didn’t have to pay Lenders Mortgage Insurance (LMI). LMI is a one-off fee that you pay if you have to borrow more than 80% of the value of a property. But things have changed! There are more finance options such as Keystart where you don’t pay LMI on your loan, so you can purchase a home with little or no deposit.
Do you have a question that you would like answered? You can chat with us by clicking on the Chat bot or by filling out the form below.
