Great Southern Bank: A $25,000 savings deposit could be the start of your home ownership journey

Great Southern Bank’s home loan specialists have reminded Australians that the journey towards owning a home can begin with as little as \$25,000 in savings.

With the NSW budget announcing the delivery of 30,000 new homes, Great Southern Bank believes there will be increased opportunities for buyers to take advantage of government housing schemes and enter the property market.

Drew Seaton, a Great Southern Bank Senior Branch Lending Specialist in NSW, said: “When you reach \$10,000 in savings, it’s a good time to speak to a lender and start the conversation about what your borrowing capacity currently looks like.”

He added that it’s also an opportunity to discuss eligibility for government grants or schemes, such as the First Home Guarantee or Regional First Home Buyer Guarantee, which allow homebuyers to purchase with as little as a 5% deposit and avoid paying Lenders Mortgage Insurance.

“So, for a property worth $500,000, you may only need a deposit of $25,000. And while you’ll certainly need to account for additional expenses before and after purchasing, having a $25,000 deposit saved could mean you’re well on your way,” Mr Seaton said.

The comments come after the recent Great Southern Bank “No Place Like Home” report found that 72% of Millennials wish they had made more regular contributions to their savings over time, and 66% regret overspending on eating out and entertainment.

Other key tips from Great Southern Bank home loan specialists include planning your budget, saving on day-to-day expenses, understanding your financial position, and making use of government support.

Great Southern Bank, formerly known as CUA, has helped over 3,000 Australians buy a home in the past year alone and remains focused on its purpose of helping all Australians to own their own home.