I am looking at purchasing a 4 bedroom house, 10 kms from the city. I have saved the deposit and wondering what is the minimum amount that the bank will accept with a loan? My friends tell me it's around 10% but could my deposit be lower than that?
The minimum deposit can be as low as 5% but bare in mind that you are going to pay a very high LMI (loan mortgage insurance) for any deposit lower than 20%. Also some banks will require extra documents then a normal loan with 20% deposit.