Do I need a 20% deposit?

Picture this: You are saving madly for a deposit but when do you stop? Do you really need a 20% deposit? Here is our advice.

The bigger the better.

The bigger deposit, the less money you have the borrow from the bank. The less you have to borrow, the less interest you have to pay. However this means that you will spend more time saving and less time buying a property.

Avoid LMI if you can

If you have a deposit less than 20% the bank will charge you ‘Loan Morgtage Insurance’

This is insurance for the lender, not you! Generally it’s best to avoid LMI as it is just another fee to pay but if you are desperate to enter the market sometimes it is worth embracing.

Timing the market vs. Time in the market

Over time the property market will steadily increase in cost, it always has and always will. Therefore don’t let the lack of a 20% deposit stop you from buying real estate because chances are you are better to get into the market than to wait until you have a dream deposit amount saved up.

In summary, don’t miss your dream property because you don’t have a full 20% deposit yet!

If you need any advice regarding the above please contact us at

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