What size deposit will I need? What can I do if I have less than required? How does it benefit me if I have more than what’s required?

Ever wondered: What size deposit will I need? What can I do if I have less than required? How does it benefit me if I have more than what’s required?

They’re some big questions! Let’s take them one by one.

  1. You will generally need at least 10% deposit, which is payable at the exchange of contracts when you begin the process of buying a property. It’s usually paid to the real estate agent, who holds it in trust for the vendor until settlement. This is usually 42 days after exchange of contracts.
  2. If you have less than 10% deposit available in cash, you can ask the vendor, via your conveyancer, to accept a deposit bond. This is a guarantee made by a third party provider to pay the deposit amount to the vendor should you default on the property purchase contract. It’s priced as a percentage of the deposit required (usually a few hundred dollars) and readily available through conveyancers and credit assistance providers (including UNO). A deposit bond is usually a simple tick box, or commonly requested additional condition, in the contract of sale. In most cases it’ll be possible to use one, but you’ll need to double check on the contract before you sign.
  3. Having more than 10% deposit generally means you can borrow less to buy the property. This is a good thing because you could pay the home loan off earlier that way. Having more than 20% deposit generally means you may be able to access low-documentation home loans, which is also commonly viewed as a good thing as it means less paperwork for you (but other conditions may apply).

More about deposit sizes

When searching for the widest range of home loans, we think it’s ideal to have a 20% deposit. While there are home loan products that cater for any size deposit, they generally cost more in fees if your deposit is less than 20%. As a credit assistance provider, UNO can help organise a loan for you regardless of the size of your deposit. When a bank lends money, it takes a risk on both your capacity to repay and the market value of the property secured by the loan. A “mortgage” means the lender has a legal right to sell the property if you “default”, or fail to repay the loan according to your lender agreement. The lender is much happier for you to pay more as a deposit because it means it will be taking less of a risk on the loan. Not only that but if you genuinely save up a deposit over six months or so, the lender may take that as a good sign of your ability to meet financial obligations and responsibilities. If you have less deposit than required by one lender, you could try another. You need to be careful, though. Not only does shopping around take time, every lender you approach will conduct a credit history check. Every check is recorded on your credit history record and it may not look great to have too many in succession. Planning your home loan selection through UNO could help you avoid this. Low-documentation home loans are generally available for self-employed applicants with a deposit of 20% or more. They’re also available for PAYG applicants in certain circumstances. Book a call in with UNO

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Philip Smith
December 20, 2024
5 stars for our service reviews from clients
Mike Parsons provided my wife and I outstanding service for our home loan. I have never dealt with someone who is so helpful and goes the extra mile and provides such excellent service the way Mike did. Highly recommend Mike as your broker for all investment/home loans you won’t be disappointed.
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Neil Venkataramiah
December 20, 2024
5 stars for our service reviews from clients
Mike Parsons: Working with Mike was amazing. My wife and I were a couple from Sydney that had a 7 year stint overseas. On moving back, our loan had gone from Interest Only to Principal and Interest. The challenge: to get 2 recently re-patriated Aussies on an Interest Only loan. With only 1 year of Oz financials. And with income from an overseas company. We had equity in our property, but the ability to service was the issue. A very tough brief. Step in Mike. He contacted all his lenders, knowing that this was a unique situation. He never let up and followed through with calls and whatsapps at every stage of the process. We simply could not have got our Interest Only loan if it wasn’t for Mike. I highly recommend Mike for any loan or re-finance that you’re looking at. His attention to detail and ability to find creative solutions is second to none. And most importantly - he's a good guy that will guide you through the whole process in what can be a stressful time. Steph and Neil
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Stéphane Aumont
December 19, 2024
5 stars for our service reviews from clients
Highly recommend Mike - great service, very responsive and helped us through the whole process from product selection, approval all the way to settlement. Mike is supported by a great team at UNO
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Gemma Smith
December 19, 2024
5 stars for our service reviews from clients
Mike Parsons was truly amazing when he organized our home loan. He offered service that far exceeded my expectations. He was on top of everything and was very organised. He has a true “do it now” attitude and ensured everything ran smoothly. He went above and beyond to make sure everything was in place. He was always contactable (even when he was on holidays!). Keeping us up to date at every step and his communication was great! Would VERY HIGHLY RECOMMEND Mike!
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David Thorn
December 17, 2024
5 stars for our service reviews from clients
I had a fantastic experience with UNO Home Loans. I want to personally recognise the work of Mike Parsons from UNO. Mike went above and beyond in helping me navigate and select a lender his attention to detail, knowledge of the Market, Excellent Communication skills matched by a patient and friendly personality made the whole process simple and painless. Thanks Mike and thanks UNO
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Kathryn Cretney
November 14, 2024
5 stars for our service reviews from clients
Paul helped us from day one before we even arrived in Australia so we knew exactly what we needed to prepare. He’s got a tonne of knowledge and was really lovely and supportive to deal with. Helpful and easy going. Would highly recommend - now in our first Aussie home and Paul made the process all very easy!
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Sean O'Neill
November 14, 2024
5 stars for our service reviews from clients
We received excellent service and a tailored solution to our home loan requirements from Uno. Paul kept us informed at all milestone stages and throughout the process he demonstrated a ‘can do’ attitude that ultimately allowed us to get over the line and meet our deadline. We’re most grateful and very impressed. Highly recommend
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Crush Huston
November 8, 2024
5 stars for our service reviews from clients
Paul is an amazing broker. Communicative, responsive and knows his stuff! Highly recommend
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Amanda Pearce
November 7, 2024
5 stars for our service reviews from clients
After just four months in Australia, our New Zealand home sold, prompting us to stop renting and invest locally. We found Paul through a Kiwi Facebook group, and his exceptional service exceeded our expectations. From initial contact, Paul provided clear explanations, friendly communication, and prompt responses to our queries, making our mortgage process remarkably smooth. We highly recommend him.
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Dom Saric
November 3, 2024
5 stars for our service reviews from clients
Mike Parsons went above and beyond to ensure that our refinancing journey was painless and successful. He was communicative, accessible (even working while on holidays!), and his knowledge of the systems at play meant that he picked up on things that other brokers missed. Would 100% recommend Mike, and will definitely be back next time we need a broker.
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Ashleigh Breaden
October 31, 2024
5 stars for our service reviews from clients
Mike Parsons handled our refinance of our home loan with ease and a depth of knowledge that ensured we got the best deal possible for our situation. We didn't have an easy one to solve for with my husband being self employed and we were consolidating finances as well for a car loan. But Mike handled it all for us and once we had provided him with all the documents we literally didn't have to do a thing after that, it was so easy and so quick we are super happy with the experience! Top notch! Highly recommend!!
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Kyle Richards
October 10, 2024
5 stars for our service reviews from clients
Absolute legend, helped me through the first home buyers scheme, explained everything in a way that made sense, was very knowledgeable and a joy to work with.
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