If you have started saving you can start to look at buying once you have around 5% of the purchase price. Your bank or mortgage broker will then be able to start looking at mortgage options for you.

If you have between 5% and 20% of the purchase price, you may need to pay what’s called Lenders Mortgage Insurance, which enables banks to lend you a larger percentage of the purchase price. This can be included either in your upfront costs or in your loan repayments so that it’s spread out over the term of the loan.

The estimates below do not take into account the money you need for upfront costs. (Source Westpac)

What if I don’t have a deposit?

If you don’t have a deposit, there are a number of options
that can help you get your home sooner.

You may be able to use a guarantee from your parents
(supported by a mortgage over their property, or a term deposit) as equity to
assist you with your home purchase. These are generally referred to as family
guarantees.

Another option is a Deposit Protect Bond, which lets you go
ahead with a purchase before you have an actual cash deposit ready. It’s useful
if your cash is tied up in other investments or if you’re eligible for the
First Home Buyers Grant and using that to help fund your deposit. You can use a
Deposit Protect Bond at multiple auctions or by private treaty.

 What other costs are
there?

There are other up front costs you should consider when you
are doing your sums, including:

-         
Conveyancing and legal costs

-         
Government fees including stamp duty, although
this can be included in the loan

-         
Title search and registration fees

-         
Home building Insurance prior to settlement, and
possibly contents insurance when you move in.

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