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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What our customers are saying

Sally Mackenzie
February 19, 2024
We chose Uno Home Loans from their impressive web site knowing we were going to find it hard, on many fronts, to qualify for a home loan. We were incredibly fortunate to be assigned Mike Parsons as right from the get-go, despite the complexities, he hit the ground running for us. He was incredibly knowledgeable, with years of experience but what was immediately apparent and impressive was that he was totally invested in getting us over the line, doing absolutely everything possible, including working around the clock. Despite it being a relatively small loan in the order of things, Mike never missed a beat, getting docs ready, following up and answering every request from the proposed funder immediately. He kept us informed on progress the minute anything happened, and again if anything needed to be done, he was right on it. In short, we highly recommend Uno, and Mike, knowing what a remarkable job he did, over many weeks, to get us our loan. He got us a great deal, with far better rates than we expected, so we couldn't be happier. In fact, without doubt, you'd be hard pressed to find a more personable, sharp, hard working, dedicated professional who clearly prides himself on getting his customers standout results.
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Rod
February 13, 2024
Scott and his team were just A-mazing. We felt supported through the whole process with the greatest quality and care. Every question answered right in time, or even before we asked. The process was smooth and we got the best outcomes we could have wished for.
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Angela Biddle
February 6, 2024
Our mortgage recently came up for renewal, and with interest rates skyrocketing we were looking for ways to minimise the impact. Michael and his team were proactive and attentive. Michael spent time with us to understand our circumstances. He found mortgage options that worked with our current financial situation and longer investment plans. He presented clear options, providing guidance where needed. He and his team were helpful and responsive - streamlining the process and keeping us updated through the negotiations. In the end, Uno did the heavy lifting and secured a significantly better rate than our current bank offered, all with friendly, personal service. We would highly recommend UNO Home Loans.
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Fotis Bikas
January 15, 2024
I cannot help but congratulate Scott Wilkinson of UNO Home Loans for being an absolute credit to both his company and the entire loans industry. Scott is a truly rare gem of a broker in that he will not only go the extra mile to achieve for each customer the very best deal, but his knowledge of all and sundry within the industry is unsurpassed (you will see what I mean if you speak to him). Additionally, Scott has a clear passion for imparting his wealth of information with each customer, whereas the conversation with most other brokers would simply be over if they could not get you the best deal. For me, Scott Wilkinson of UNO Home Loans stands head and shoulders above the competition and I feel privileged to benefit both from his expertise and professionalism whenever it is time for a refinance or new loan.
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Tomoharu Matsui
January 11, 2024
Michael Parsons helped me a lot when it's difficult to establish my capabilities in loan.
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Gillian Kearon
January 9, 2024
I highly recommend Mike Parsons as a mortgage broker. I couldn't fault the service provided by UNO. Thanks Mike!
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Taner T
December 20, 2023
Thank you Eren Tan for the amazing service and support. Our Loan was a little tricky and complex for other lenders but Eren managed to get it over the line in record time. His professionalism and dedication to our needs was exceptional. If you need a Loan no matter how complex your situation, make sure you contact Eren at UNO Home Loans.
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Karaipu Brown
December 20, 2023
Buying & selling a house at the same time is very stressful but Scott Wilkinson from UNO home loans made sure we knew what was happening & took most of the stress away. He always kept us up to date and if we had a concern or wanted clarification on something we were able to call him, if he didn’t know the answer straight away he will find out and contact us back.. now we are enjoying our new house and turning it into a home :)
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Chris Anderson
December 18, 2023
Just completed my first loan with UNO which was so much easier than with other other brokers I have used in the past. Our broker MIKE PARSONS always had time for me and broke things down for me in the simplest of terms and was very patient with my silly questions and my constant changing of plans. I wish I had used them in the past as I wouldn't be in the situation I'm in now. Can't recommend them highly enough. Thanks UNO and Thanks MIKE 😊
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Stephen Broomfield
December 11, 2023
To be able to recommend Scott Wilkinson for your mortgage broker was a privilege. We had deals fall through but Scott supported, guided and stuck with us, proper partnership. The whole team at UNO helped us and supported us right through to after settlement. Made sure everything was correct and how we are progressing. Communication was amazing and straightforward and easy to understand. Transparent. We can not Recommend Scott and the team as Uno high enough. Use UNO with confidence.
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Tarek Hussain
December 6, 2023
Can't thank Amy enough for her hard work, dedication and determination on getting multiple loans completed for me. I wouldn't hesitate in recommending Amy and the Uno team to any of my associates. Will definitely be back in the near future!
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Linda
November 3, 2023
If you’re looking for a trustworthy, thorough, reliable & knowledgeable Mortgage Broker then you must call Anita Callaghan! I can’t even imagine how stressful this process would’ve been without her. Anita went above and beyond to make sure she answered every question, responded to every text (even on weekends/after hours), and followed up on every detail to ensure we had all the info we needed. Anita is a true people person who is warm, empathetic, kind and supportive. You can tell she loves helping people and loves what she does, which is probably why she’s so good at it! Can’t thank you enough Anita, or recommend you more highly! You’re the best!
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