The contract deposit and the cash contribution required for a loan are related but different amounts.
Clarify both commitments
Ask your legal adviser what is payable at exchange and whether the contract deposit can be negotiated. Ask the lender about the loan-to-value ratio based on its accepted property value, possible LMI and purchase costs.
Retain a buffer
A larger deposit may reduce borrowing and lender risk, but it does not waive income, living expense or dependant assessments. Check sustainable repayments and avoid using every available dollar at settlement. Government assistance is subject to eligibility and owner-occupancy requirements, not an automatic replacement for lender assessment.
