Let’s talk money!
Just how much do you need to buy a home? As a rule of thumb, try to have at least 20% of the purchase price saved up. There are exceptions to this rule, which we will talk about soon, however the best rates are generally available when you have 20% or more.
Let’s run some numbers…
Say the home you want is for sale at $450,000. That means you should have $90,000 at hand for a deposit before the bank will come to the party with the remaining $360,000.
Being a guarantor, your family member will not have to front up any hard cash for your loan and instead their property can be used as security. Conditions do apply, but we can help you and your family work through those and make sure this will be affordable for all parties involved.
Whatever route you take, bear in mind that the bigger your deposit, the lower your loan amount = less interest you will pay in the long term… and who doesn’t like saving money?