Benefits of a deposit

When purchasing a home, you are usually required to pay 10% deposit of the purchase price. But what is the reason and benefits for this down payment?

When signing an agreement, a deposit amount is needed to secure the purchase.

A deposit lowers your monthly repayments and gains a favourable interest rate which can save you money in the long-term

It also shows the seller that you are committed to the sale whilst simultaneously proving to the lender that you are less of a risk.

While it is possible to get a 100% home loan, which removes the requirement of paying a deposit, it does however increase your interest rate and higher monthly repayments.

It is recommended to put in a higher deposit should you have the resources as it saves you in the long-term.

Enlist the services of a reputable agency to ensure your finances are handled professionally.