Today I’m going to show you exactly how to calculate your home loan deposit.
You need at least 8-10% of the purchase price as deposit. You can use our deposit calculator here.
What is my house deposit amount?
Your home deposit is your contribution towards buying your first house, this includes the bank deposit which is usually between 5-8% of the purchase price plus savings to cover other costs like stamp duty and other fees.
In total, you will need 8-10% of the purchase price in savings to afford a home.
So for example, if you were buying a place for $400,000 you would need around 10% or $40,000 in savings.
This includes the bank (sometimes called the home loan deposit) and other costs like stamp duty.
You can calculate this manually by getting the purchase price, and multiplying it by the deposit amount divided by 100.
Or 400,000 x 10/100 = $40,000.
(Or by using our awesome deposit calculator above)
Why is knowing my house deposit important?
Setting your budget is the very first step …
In fact, the amount you have in savings usually sets how much you can afford to buy.
And without knowing this, it’s impossible to start looking for a home.