What’s the most difficult part of buying a house? If you ask most people, probably the deposit. The deposit is the big chunk of cash that you have to save up to convince the bank that you’re really serious about buying a house and that you’re willing to risk your own money in the process.
The good news is that the housing market has rebounded sharply in the last few years, thanks to the improving job situation as well as the growth in the global economy. But for people wanting to buy a house, this has meant rising deposits. Currently, the average home price is standing at around $200,000, perhaps a touch over. With most mortgage brokers asking for a 5 percent deposit, that means that families have to pay out around $10,000 to secure their new house and a mortgage. For many families, that’s a lot of money to have to save up, especially those on modest incomes.