[Music] hi everyone this is mudit from Infinity financials I get asked a question very frequently by especially by first home buyers that what is the minimum down payment we should have for buying a house now of course the more down payment or the more deposit you have the better it is in order to buy a property uh because that means you need lesser loan lesser loan means it's less risky for the banks and if it is less risky then you can get better deals from them whether it's in the terms of interest rate or LMI or some other discounts having said that a common constraint for people is the town payment because that's about savings and savings can take a long time right and most people they want to buy uh their house as soon as possible so what is the minimum deposit required now most banks can give you a loan with only 5% deposit from your side that is they can lend up to 95% of the property value that means 5% is roughly the minimum okay but then there are some other things for which you'll need more money there's something called LMI lenders mortgage insurance which at this kind of loan it varies somewhere in the range of 3 to 4% so you need money for that as well and then there is there could be stamp Duty which is out of pocket you don't get a loan for stamp Duty and there could be some smaller expenses like solicitor fee uh building inspection pest inspection kind of things all that combined can be small but Str Duty in itself can be typically in the range of 4 to 5 6% of the property value and you don't get a loan for it so you need it in savings so we're talking about roughly 5% minimum required plus 3 3 and a half% of LMI plus 4% roughly 4 to 5% for stamp Duty we're talking about roughly 12 to 13% that is the minimum cash required or savings required in order to buy a house having said that there are a few government schemes available because of which stamp Duty and LMI can be waved off either fully or partially depending on your eligibility for the same and in another video we will discuss more about the LMI we have discussed more about the first home buyer benefit schemes take to take an example if you're talking about a million dollar property uh 12 to 13% of that will be roughly $120,000 or $130,000 that's the kind of money you'll need minimum to be able to buy this property but if you want better deals from the bank of course more deposit you have the better deals we can get hope that clarifies for more clarity or uh knowing more about videos like this contact Infinity Financial thank you bye-bye he