How important is a deposit and how much should I have?

In a nutshell a deposit is really important. Outside of giving you the opportunity to consider home ownership it shows a behaviour that you are able to set aside some of your earnings on a regular basis. This behaviour shows banks that you are able to meet their requirements of paying back the money they lend you with a reduced risk. The larger the deposit you have means that more lender options are available and in turn this equals more competition for your business. More competition for your business means lower interest rates available to you. 
So what is the minimum deposit? There are government funded home loans available with as little as a 2% deposit. These home loans are available to people that would otherwise have difficulty meeting the requirements of main stream lenders and there are strict qualifying rules such as income limits and purchase price restrictions. Most lenders require at least a 5% deposit and there are generally other costs, such as mortgage insurance and stamp duty, to consider. 
If you want advice on how much deposit do you need that is specific to your personal situation give me a call.
*The deposit is worked out as percentage of the purchase price of the home you are looking to buy.