For the average Brisbane buyer to save that elusive 20 per cent deposit they’ll need around 4 years and 10 months.
That’s not too bad compared to Sydney-siders who need almost double that time, while Canberra residents need 7 years and Melbournians 6-and-a-half years, reports Domain.
What’s that you say: What if I don’t want to wait another 4 or more years to buy a home?
We get it. Once you’ve decided to buy, saving for years while prices grow higher can be a torturous journey.
There are other options. This is where you need to get some independent financial advice or help from an independent mortgage broker.
Many lenders will allow home buyers to borrow up to 95 per cent of the purchase price of their home. This would shave years off your deposit savings time.
What’s the catch? You’ll need to pay lenders mortgage insurance (LMI). This protects the bank in case you can’t pay back your loan. It’s pricey. But talk to a mortgage broker to find out if you can add the insurance cost to your loan balance, or – avoid it altogether!
The Australian Government offers support to eligible first home buyers, new home buyers and single parents through guarantee schemes which mean you don’t have to pay LMI. The government essentially goes guarantor. Thanks Uncle Scotty! Read more about the schemes – places are limited and get snapped up fast.
Check out how long it takes on average to save a home deposit in Australia.
- Sydney, 8 years and 1 month
- Canberra, 7 years and 1 month
- Melbourne, 6 years and 6 months
- Hobart, 5 years and 10 months
- Brisbane, 4 years and 10 months
- Adelaide, 4 years and 7 months
- Darwin, 4 years and 3 months
- Perth, 3 years and 7 months
Read to buy? View our current listings for sale.
Still saving? Contact us for a chat or check our listings for rent.
