How much deposit do I need for an investment property?

The deposit required for an investment property typically depends on several factors, including the lender's policies, your financial situation, and the type of property.

In general, most lenders require a deposit of at least 20% of the property's purchase price. This helps avoid paying Lenders Mortgage Insurance (LMI). If you have a deposit of less than 20%, you may still be able to secure a loan, but you will likely need to pay LMI. Some lenders may allow deposits as low as 10% or even 5%, but the cost of LMI can be significant.

Besides the deposit, you should also consider other upfront costs associated with purchasing an investment property, such as stamp duty, legal and conveyancing fees, building and pest inspection fees and any loan application fees.

Lenders will assess your financial health, including your credit score, income, and existing debts. A strong financial position can improve your chances of securing a loan with a lower deposit. It's important to speak with a mortgage broker or financial advisor to get personalised advice based on your specific situation and to explore different lending options that may be available to you.

It's a good idea to consult with a financial advisor or a mortgage broker to get a more precise estimate tailored to your specific situation and to explore the best financing options available.

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