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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Lani Wards
May 13, 2025
5 stars for our service reviews from clients
Paul Davey worked very hard to get us the mortgage we required for our investment property. He is knowledgeable and approachable. Thanks Paul!
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Michael Badham
May 13, 2025
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Our entire process with Uno went very well. We had a unique set of requirements for our loan and our super friendly broker Mike Parsons managed to secure us the perfect outcome. Mike also worked above and beyond our expectations to make sure the whole process of completing the documentation of switching banks went smoothly.
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Vanessa Koster
May 13, 2025
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The service recieved from Paul was fantastic. He made the whole process stress free & easy. We started the process from NZ & Paul had everything ready for approval as soon as we landed in Aus. I would highly recommend Paul if you require a mortgage. You won't be dissapointed.
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Peta Hemmings
May 13, 2025
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Paul has been amazing throughout our entire home loan process, we have recommended him to many of our family and friends. He has been extremely helpful and professional right from the beginning.
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Ryan Whittle
May 12, 2025
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Highly recommended, Paul and his team made the process very streamlined delivering the best possible results.
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Tiana Perez
May 10, 2025
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Paul and Dalby were incredible to deal with, from the first interaction with Paul a few months prior, to getting approval to purchase, through to the last minute helping us with the final settlement details. Their communication was second to none and they truly went the extra mile. Paul managed to get us more borrowing power than dealing with the bank directly. I couldn't recommend Paul and his team enough. Paul and Dalby, thank you so much for putting hours and hours of work into our application. We really appreciate it!
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Nicholas Violaris
April 14, 2025
5 stars for our service reviews from clients
Can not recommend UNO Home Loans enough, Scott Wilkinson and his team have helped us get a home loan in no time and they have been a breeze to deal with, great job guys, looking forward to working together more in the future
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Lahnie Cooper
March 26, 2025
5 stars for our service reviews from clients
Jake Wood was a pleasure to work with and made this process extremely easy for me! I highly recommend Jake and the team at Uno.
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Daniel Demosthenous
March 18, 2025
5 stars for our service reviews from clients
The team at UNO were absolutely fantastic at helping me set up and organise my new property purchase, Andrew answered all my questions promptly and went over and beyond to reassure me at any stage with his abundance of knowledge of the matter, also a big thank you to Dalby and Jena for helping with the process as well.
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Sheree Tidswell
February 20, 2025
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Scott Wilkinson and the team at Uno Mortgages were exceptional to work with. They were proactive, took the initiative at every stage, and kept us well-informed throughout the process. Their patience and relaxed approach made everything feel seamless, and we truly felt supported in achieving the best outcome for our needs. We highly recommend Scott and the Uno team for their professionalism and dedication!
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Jaio Seto
February 19, 2025
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Paul is great to deal with, he made the whole process super easy!
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Ankur
February 12, 2025
5 stars for our service reviews from clients
Shelley and the team at UNO Home Loans have been amazing to deal with. The process has been very smooth. I would highly recommend their expertise.
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