When it comes to purchasing property, a deposit is one of the most important things you need to be equipped with before jumping into the following steps on your property journey.
Typically the amount for a deposit required is 10-20% of the property’s purchase price. But high deposits are now a thing of the past!
Did you know that there are opportunities that allow you to purchase property with a deposit of just 5%? Others that allow you to purchase with just $10K? Or even opportunities that allow you to put a deposit down without using cash from your savings?
Let’s explore.
Table of Contents
Standard Cash Deposit
Just as the name suggests, a standard cash deposit is where you pay the standard percentage deposit of between 5-20% against the purchase price of a property. This is usually done through utilising cash savings.
Putting down a larger deposit can mean that you don’t have to borrow as much from the bank, which means you will pay less interest over the life of your loan. This could result in you paying off your home loan even sooner, and even leading to investing in more properties sooner!
Although putting a bigger deposit down when purchasing property can help out with repayments, you miss out on opportunities- such as entering the market sooner, where your property could have begun generating equity already.
Deposit Bond
Deposit Bonds are a way to secure the property without using any cash and usually cover up to 10% of the property’s purchase price. This bond is utilised in place of a deposit when a buyer exchanges contracts on a property, according to Canstar. However, the deposit must be later paid in full at an agreed time with the seller.
In other words, a deposit bond is an insurance policy that indicates the buyer’s commitment and ability to pay the full deposit amount at the time of settlement.
Deposit bonds utilise the equity from an existing owned property, as a form of deposit in place of actual cash.
Deposit Bonds have an array of benefits for home buyers as it allows for asset-rich individuals to put down a deposit despite being cash poor. Additionally, it is a cheaper alternative to bridging finance, allowing you to save some more before settlement, and the turnaround period for a deposit bond is quick – usually within 24 hours.
St Trinity Exclusive $10k Deposit Offer
Here at St Trinity, we have an exclusive offer to secure a property with just a $10,000 deposit on projects across Fairfield, Kiama and Wollongong.
This exclusive offer allows customers to secure a property of their own for only $10k, wherein the following 12-month period, they will pay for the rest of the 5% deposit.
This is a fantastic opportunity for those who currently aren’t deposit-ready but wish to get into the market already and begin to reap the benefits of generating equity.
Government Grants
First Home Buyers Assistance Scheme
Although the usual amount needed to purchase a property ranges from 10-20%, the First Home Buyers Grant allows first-home buyers to purchase property with a minimum deposit of just 5%.
To find out more about this government grant, click here.
Family Home Guarantee
The government initiative of the family home guarantee helps make purchasing property more attainable for single parents. Under this guarantee, eligible single parents can purchase property with a minimum deposit of 2%!
To find out more about this government grant, click here.
Final Words
When looking to buy property, there isn’t always one clear-cut way to put down a deposit – there is a range of different options available for you that you should consider and take advantage of.
This includes our $10,000 deposit offer. To find out more about this exclusive offer, make sure to talk with our team at St Trinity today by registering below.
