A deposit is the money you put towards your home yourself.  Having a deposit for your new home reduces the amount of money you have to borrow and therefore your repayments and the amount of interest you pay.

The deposit you require will depend on the value of the home you want to buy.  When borrowing you usually require at least a 20% deposit based on the value of the home you are buying.  E.g. if your home is worth $300,000 and the amount owing on your home loan is $100,000 then you have $200,000 equity.  Try our simple calculator to work out the percentage of deposit you currently have.

Please note, if your deposit is less than 20% of the property’s value, a Low Equity Premium on a graduated scale will apply and a Registered Valuer's Report will be required. An application fee and our lending criteria will also apply. Try our simple calculator to work out what percentage of the property's value you may have to borrow, based on your current deposit.  This is what is commonly referred to as your 'loan to value ratio'.

Using your equity
Since you already own a home you can use your equity in the home as the deposit for your new home.  Equity is the portion you own yourself after any debts are paid off.

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The content on our site is for information only. You should obtain professional advice relevant to your circumstances. Our lending criteria, terms, conditions and fees apply. Contact us for more details.