How much should I save before I buy a home in Australia?

Question

Accepted Answer

Moneysmart says a useful savings goal is 20 percent of the price, plus buying costs such as stamp duty, legal fees, and inspections. A 20 percent deposit can help you avoid lenders mortgage insurance. That insurance protects the lender if the loan is not repaid. A smaller deposit is sometimes possible. If you buy at auction, expect to pay a deposit immediately. The page gives 10 percent of the price as an example. An auction generally has no cooling-off period, so the sale is final and is not subject to finance or a building and pest inspection. A private sale usually has a short cooling-off period in most states and territories. This page does not say a lender will approve the loan.