There are now home loans available that require little or no deposit, but don’t get too excited. The downside of not having saved a deposit is that you will pay a high premium for Mortgage Insurance (in the thousands of dollars) for the benefit of borrowing up to 100% of the value of your home. 

Ideally, your deposit should be at least 20% of the purchase price to avoid having to pay Mortgage Insurance. If you can't afford this amount, it's still beneficial to pay 10% deposit. Paying a deposit can save thousands in interest re-payments over the term of the loan and it can help avoid financial hardship when rates rise.

You should also plan ahead for those extra costs, including stamp duty, insurance, lenders' fees, legal fees, moving costs and real estate agent fees. All of this can potentially add a further 10% to the purchase price of the property!

If you’re buying your first home, the Federal Government’s First Home Owner Grant will give you a start, however, it’s usually not near enough on its own.

If you don’t have any savings and want to buy a house, the first place to start is with a budget. The Australian Government website Understanding Money, provides tips and tools on preparing a budget. You'll also find some handy calculators on domain.com.au.

Another option is to talk to your parents about a Family Equity Mortgages to help you get there faster. 

If you are ready to buy, we have more handy tips on finding the right home.