Page 117 - Smart Money

Smart Money

How much do I need for a deposit?
Your deposit is normally paid when you sign a Contract of Sale. Usually
between 5% – 10% of the value of a property, which you pay when
signing a Contract of Sale (called an Offer of Acceptance in WA).
As a rule, all banks require a min 5% of the purchase price as a deposit.
However, there is one exception - Keystart only requires a 2% deposit.
Keystart has strict lending guidelines which you will need to follow. Speak
with us to discuss your options for a deposit. You may be able to borrow
against the equity in your existing home or an investment property.

How much will regular repayments be?
Again, there are tools available on our website that can be used as a
guide when calculating your home loan repayments. As well as there
being a huge variety of home loan products, there is also an assortment
of different options available when it comes to loan repayments. Your
Finance Manager can talk these through with you.

How often do I make home loan repayments — weekly,
fortnightly or monthly?

You will find that most lenders offer flexible repayment options to suit
your individual needs, such as your pay cycle.
If you aim for weekly or fortnightly repayments, instead of monthly, you
will make more repayments in a year, which will reduce your principal
loan and shorten the life of your loan.
However, if you choose interest only repayments on your new home
loan, then your repayments will have to be monthly and this will not
reduce your loan.
What fees/costs should I budget for?

There are a number of fees involved when buying a property. To avoid any
surprises, the list below sets out all of the usual costs:

1