Follow my 20-25-20 rule which is a 20% deposit and no more than 25% of your income in repayments over a 20 year loan. When purchasing a home or investment property you should always aim to put down at least a 20 percent deposit so that you avoid paying mortgage insurance and have some equity in your property. I call this “the ability to sleep peacefully at night buffer”. That way you know that you and your family can cope if unexpected financial challenges arise.
I was reading this on another buyers site called EPS Buyers Agents in Sydney and the above was written by the principle Patrick Bright. I thought his advise is well worth sharing.