Hi [First name],
1Story“Last week, a couple told me they’d been saving for six years. Six.”
Last week, a couple sat across from me and told me they’d been saving for six years.
Six.
They’d skipped holidays. Said no to weddings interstate. Moved back in with her parents for 18 months. All so they could hit the magic number: a 20% deposit.
When I asked why 20%, they looked at each other and said, “Isn’t that just… what you need?”
It’s not.
2MythSomeone told them they needed 20%.
Here’s the myth: you need 20% to buy your first home.
3CostSix years of rent while prices kept climbing.
Here’s what that belief actually costs: years of rent, and the whole time, prices keep climbing. Every year you wait, the 20% you’re chasing gets bigger. On a $700k home, that’s $140,000 before you’ve paid a cent of stamp duty. At $1,500 a month, it takes nearly eight years to save.
4Truth20% only skips LMI. Many buyers can get in with 5%, or less with a guarantor.
Here’s the truth: 20% isn’t the entry fee. It’s the discount.
Saving 20% lets you skip lenders mortgage insurance (LMI). That’s all it does. Lots of first-home buyers get in with 5%. On that same $700k home, 5% is $35,000. For some people, a government scheme waives the LMI completely. And if your parents have equity in their home, a guarantor loan could mean you need no deposit at all.
5ProofTheir outcome. They could have bought years ago.
As for that couple? We ran their numbers. They’d passed 5% about four years ago. That’s four years of rent they didn’t need to pay.
They’re now looking at houses. Not saving for one.
6Soft CTA“Hit reply with HOME and I’ll run your numbers.”
So here’s my question: what’s your real number?
Hit reply with HOME, and I’ll run your numbers in a free 15-minute Deposit Reality Check. We’ll cover your actual deposit target, your borrowing power, and which schemes you may qualify for.
It won’t cost you a thing. Waiting might.
[Name]
[Business name]
P.S. If someone told you 20% was the rule, they meant well. But “meant well” won’t get you a set of keys. Reply HOME and let’s find out how close you really are.