MCG Home Deposit Multiples

The deposit multiple measures how many weeks of household income are required to fund a 20% deposit on the median house. It is a pressure gauge, not a savings timetable, because it assumes a household could save 100% of income— an assumption that never holds. In practice, saving times depend on after-tax income left over once rents (or mortgage), utilities, insurance and groceries are
paid.

Today, 20% deposits are not the norm. Many buyers use 10% or even 5% deposits with Lenders Mortgage Insurance (LMI) or guarantees. Mechanically, a 10% (5%) deposit would be half (a quarter) the 20% multiple.

As Featured By:

Fill in your details below, and we'll get you a copy right away!

First Name

Last Name

SUBMIT