How much do I need for a down payment?

Discussion in 'The Buying & Selling Process' started by JacobSwans, 22nd Jul, 2018.

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  1. JacobSwans

    JacobSwans New Member

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    Hey,

    I'm looking to buy my first house and later invest in other houses. I've been doing research on how big of a down payment I need and found many different answers. Specifically, on this youtube video, the guy says with a primary residence you only need a 3% down payment and then 20% on an investment house. Although I've also read that putting 3% down is a bad idea. Is it because he lives in the US and they have different policies or something else? Can someone please explain the idea of this?

    Thanks.
     
    JacobSwans, 22nd Jul, 2018
    #1
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Hi jacob

    if you have good income, good credit and have a parent that can provide a security guarantee your min down can be zero

    ta
    rolf
     
    Rolf Latham, 22nd Jul, 2018
    #2
  3. Scott No Mates

    Scott No Mates Well-Known Member

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    Scott No Mates, 22nd Jul, 2018
    #3
  4. spludgey

    spludgey Well-Known Member

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    97% LVR does not mean 3% deposit. It's 5% deposit and 2% LMI.
     
    spludgey, 22nd Jul, 2018
    #4
  5. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    worse :)

    for say a 650 buy at high lvr its more like 92/93 + lmi

    LMI at those nose bleed lvrs is near 4 %


    ta

    rolf
     
    Rolf Latham, 22nd Jul, 2018
    #5
    spludgey likes this.