Lending advice

Generally, most lenders require a 20 per cent deposit, while some lenders will allow you to go down to a 15 per cent deposit.

If you only wish to have a 10 per cent or 5 per cent deposit, you may need to pay Lenders Mortgage Insurance (LMI). LMI is an additional fee that is paid to a third-party insurer. Often this fee can be added to the loan.

You also need to factor in bank fees, legal fees, and stamp duty.

If you want to repay you mortgage as fast as possible, there are a number of things you can do, including:

• Repay your loan fortnightly rather than monthly, this will save interest over the life of the loan.
• Make additional payments.
• If you have a variable loan, you can use an offset account to place your savings into. This will offset the interest on your loan and will reduce interest charges.
• Look for the lowest rate possible.

Banks will look at a number of factors when considering any finance application, including:

• Your employment
• Your cash savings
• Your business financials if you are self-employed
• Your credit history
• How much other debt you have outstanding

Often with the help of a professional, you can negotiate your way into a loan which is appropriate for your circumstances.

Stamp duty is a type of tax that is paid when you purchase real estate in Australia. The amount of stamp duty you pay depends on the state you live in, it's generally between 5 and 5.5 per cent.

As a first home buyer you may be exempt from stamp duty or eligible for a stamp duty discount. For newly built homes and apartments, the stamp duty is often waived.

This depends on your savings. Generally, you can borrow between 80 and 95 per cent of the value of the property you are purchasing. That means you need to have the remaining amount in savings.

You will also be assessed on your ability to service the loan. Serviceability is measured on how much income you earn each year, your expenditure and also any other outstanding debts.