Low Deposit Home Loans

Compare mortgages that require 5% deposits and buy your property sooner.

This page has over 20 low deposit home loans to compare and useful information on all the ways you can get these loans.

HSBC Home Value Loan Offer

HSBC Home Value Loan - (Owner Occupier P&I)

3.59 % p.a.

variable rate

3.61 % p.a.

comparison rate

HSBC Home Value Loan Offer

HSBC Home Value Loan - (Owner Occupier P&I) offers a low interest rate loan with no ongoing fees. Plus you can make extra repayments and free redraw online. Available with just a 10% deposit.

  • Interest rate of 3.59% p.a.
  • Comparison rate of 3.61% p.a.
  • Application fee of $0
  • Maximum LVR: 90%
  • Minimum borrowing: $50,000
  • Max borrowing: $7,500,000
Go to site
Promoted

Compare mortgages with low deposit options

Rates last updated February 20th, 2019
$
Loan purpose
Offset account
Loan type
Repayment type
Your filter criteria do not match any product
Name Product Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment Short Description
3.59%
3.61%
$0
$0 p.a.
90%
Get a low interest rate loan with no ongoing fees. Plus you can make extra repayments and free redraw online. Available with just a 10% deposit.
3.69%
3.72%
$445
$0 p.a.
90%
NSW and ACT customers only. Get a special discount for a limited time when you open an IMB Transaction Account.
3.72%
3.72%
$0
$0 p.a.
110%
Pay no deposit or LMI and get a discounted rate with this family pledge loan. Requires a family member to act as guarantor. NSW, Qld and ACT only.
3.59%
3.63%
$0
$0 p.a.
90%
Get a low variable interest rate and buy a property with just a 10% deposit. 100% offset account attached.
3.74%
4.49%
$445
$6 monthly ($72 p.a.)
90%
NSW and ACT customers only. 3 years fixed interest terms and free access to redraw facility online.
3.88%
3.89%
$0
$0 p.a.
90%
Save on interest with a free 100% offset account and buy your property with just a 10% deposit.
3.82%
3.93%
$0
$10 monthly ($120 p.a.)
90%
Get Velocity Frequent Flyer Points at settlement, monthly and every three years, plus the option to make up to $10,000 a year in extra repayments.
3.49%
4.58%
$0
$395 p.a.
90%
Loans over $150000 get a discount off an already low fixed rate. Available for NSW, QLD and ACT residents only.
3.75%
4.49%
$0
$395 p.a.
90%
Lock in a very competitive 2 year rate and get package discounts on your credit card and offset account. $1,500 refinance cashback available (conditions apply).
4.08%
4.09%
$0
$0 p.a.
95%
Variable rate mortgage with low fees that's available with a 5% deposit. 100% offset account attached.
3.74%
4.13%
$0
$349 p.a.
90%
Get a sharp rate plus package discounts and a 100% offset account.
3.85%
4.18%
$500
$0 p.a.
95%
Apply for Easy Street fixed rate home loans and get a competitive loan with a fixed interest rate.
4.29%
4.30%
$0
$0 p.a.
95%
A competitive 3-year fixed rate loan with a high max insured LVR.
3.69%
4.09%
$600
$395 p.a.
95%
Get interest rate discounts and waived fees on this package loan with a 100% offset account. $500 cashback offer for first homebuyers borrowing over 80% and paying LMI.
3.69%
4.75%
$0
$395 p.a.
90%
Enjoy a competitive rate with no application fee for this package loan.
3.74%
4.56%
$0
$395 p.a.
90%
A fixed rate loan with a 100% offset account and the option to make additional repayments. Loans over $150000 receive a discounted rate. NSW, QLD and ACT residents only.
3.94%
4.95%
$595
$0 p.a.
95%
Borrow up to 95% LVR of the value of the property you're buying and pay no application or ongoing fees.
4.29%
4.31%
$0
$0 p.a.
95%
Fix your rate for two years with this competitive, low-fee loan. No offset account available.
3.74%
4.52%
$0
$395 p.a.
90%
Enjoy discounts on banking products and insurance with this package loan. NSW, QLD and ACT residents only.
3.69%
4.08%
$0
$349 p.a.
90%
Package your loan with other AMP products and save on rates and fees.
4.13%
4.14%
$0
$0 p.a.
90%
Access a fee-free offset account and a special interest rate for investors.
3.99%
5.35%
$600
$0 p.a.
90%
Competitive rates for fixed for 3 years with redraw facility.
4.04%
4.06%
$0
$0 p.a.
90%
A home loan with no ongoing fees. This loan is available for refinances and purchases.
4.04%
4.07%
$0
$0 p.a.
90%
For a limited time, pay no application or settlement fees. You can also take advantage of a free redraw facility.
3.72%
3.73%
$0
$0 p.a.
90%
New customers can get a discounted variable rate and a fee-free redraw facility. NSW, QLD and ACT residents only.
4.04%
4.88%
$595
$0 p.a.
95%
A low 3-year fixed rate with the option to split your loan for free.

Compare up to 4 providers

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Applications are subject to approval. Conditions, fees and charges apply. Please note that you need to be an Australian citizen or permanent resident to apply.

Credit services for Aussie Select, Aussie IQ and Aussie Optimizer products are provided by AHL Investments Pty Ltd ACN 105 265 861 Australian Credit Licence 246786 ("Aussie"), and its appointed credit representatives. Credit for Aussie Select products is provided by Residential Mortgage Group Pty Ltd ACN 152 378 133 Australian Credit Licence 414133 (“RMG”). RMG is a wholly-owned subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL and Australian Credit Licence 234945. Credit for Aussie Optimizer products is provided by Perpetual Limited ABN 86 000 431 827 (Lender). Credit for Aussie IQ is provided by Macquarie Bank Limited ABN 46 008 583 542 AFSL and Australian Credit Licence 237502. Home loans issued by the Lender are serviced by Macquarie Securitisation Limited ABN 16 003 297 336, Australian Credit Licence 237863 (MSL).

Aussie is a trade mark of AHL Investments Pty Ltd. Aussie is a subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124. ©2018 AHL Investments Pty Ltd ABN 27 105 265 861 Australian Credit Licence 246786.

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Aussie Home Loans is both a lender and a mortgage broker, and offers a range of services.

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HSBC Home Value Loan Offer

HSBC Home Value Loan - (Owner Occupier P&I)

3.59 % p.a.

variable rate

3.61 % p.a.

comparison rate

HSBC Home Value Loan Offer

HSBC Home Value Loan - (Owner Occupier P&I) offers a low interest rate loan with no ongoing fees. Plus you can make extra repayments and free redraw online. Available with just a 10% deposit.

  • Interest rate of 3.59% p.a.
  • Comparison rate of 3.61% p.a.
  • Application fee of $0
  • Maximum LVR: 90%
  • Minimum borrowing: $50,000
  • Max borrowing: $7,500,000
Go to site
Promoted

How small can my deposit be?

The standard deposit size for most lenders is 20% of the property's value. In other words, borrowers need a loan-to-value ratio (LVR) of 80%. Low deposit loans come with an LVR of 90 or 95%. This means you can potentially get a mortgage with just a 5% deposit.

If you're buying an $800,000 property, a 20% deposit is $160,000. A 5% deposit is just $40,000. That's a huge difference.

There must be a catch, right?

There is. If you're borrowing more than 80% of a property's value you will have to pay lenders mortgage insurance (LMI) as well. Depending on how much you're borrowing this can be a significant cost, ranging from several thousand dollars up to ten or even twenty thousand dollars.

You can capitalise your LMI, meaning you can add this cost into your borrowing amount. But this can affect how much you can borrow. Learn more about LMI and how if affects low deposit loans.

The low deposit trap: Be sure you have cash to cover all your costs

Saving a 5% deposit is much easier than saving a 20% deposit. But you need to make sure you have money saved up to cover all your other home buying costs. This includes LMI, stamp duty, government fees, conveyancing costs and upfront lender's fees.

Don't forget to add in things like legal fees, conveyancing fees and transfer fees to your total. Find out the true cost of buying a property here.

Is it harder to get approved for a low deposit home loan?

Home buyers applying for a mortgage.While the banks might advertise that you can borrow up to 95% of the purchase price of your new home, it's important to realise that lending criteria still apply:

  • Good credit history. In order to get your loan approved at a high LVR like 95%, you will need to have a clean credit history. This means you should have no defaults showing on your credit report for missed payments on other bills.
  • Good employment history. You will also need to demonstrate that you have a stable employment history. This means showing that you've been in the same job for at least 6-12 months, or been working within the same industry in a similar role.
  • Genuine savings. If you can show where your 5% savings amount came from, this will go in your favour. For example, showing your savings account statements with regular deposits going into it will be viewed favourably.
  • Good asset position. The credit assessor will view your existing assets and consider them in terms of whether you're doing well based on your age and income. For example, if you're a first home buyer and you have 5% savings and a car, this may be considered a positive asset position for your age and income.
  • Controlled debts. If you submit your home loan application and it shows that you have several credit cards, a car loan, and a personal loan all outstanding, it's likely your loan will be declined. Consolidate your debts and pay off the most urgent ones. Credit card debt is a bigger red flag for a lender than an HECS student debt, for example.

Get a free credit score check before you apply for a home loan

Can I still get a no deposit home loan?

True no deposit mortgages are largely a thing of the past. Most banks won't throw 100% of a property's value at you. But there are some exceptions to this rule. These exceptions could be very useful for borrowers who are having trouble saving a deposit.

  • Gifted deposit. If you have generous parents with some cash in the bank, they can give you part of your deposit as a gift. If you're able to reduce your loan amount so you're only borrowing 90% of the purchase price, some banks won't ask you to prove that you have genuine savings. This means mum and dad need to come up with 10% of the purchase price and offer it to you as a gift. Learn more about using parental gifts as deposits.
  • Guarantee from parents. If your parents own their home and they are happy to act as guarantors on your mortgage, you could borrow 100% of the purchase price of your new home without having any savings. Essentially, the bank takes a guarantee from your parents that is secured by the equity they have in their own property. Just be absolutely sure that you and your parents understand all the implications of guarantorship before you enter into this type of agreement.
  • Existing property. If you already have equity in your family home, you may be able to use this to secure the purchase for your next property. Effectively, this lets you borrow 100% of the purchase price of your new property without having any savings.

Read the in-depth guide to borrowing 100%

Can I take out a personal loan for a deposit?

It's possible to take out a personal loan and use that as part of your deposit. For most people it's probably not a good idea. And the lender will still need to see 5-10% in genuine savings.

Using a personal loan for a deposit is a risky idea because these loans have much higher interest rates. You'll have to repay this loan while making mortgage repayments on top. And taking on another debt is a red flag for lenders and may make it harder to get approved.

If you're on a high income and want to buy a home in a hurry this strategy might be worth it. But for most people it's far from wise.

Can I use my super as a deposit?

There are two possible ways to use your super to buy property.

Self-Managed Super Funds (SMSF)

You cannot use money from a SMSF to buy a home. But you can use it to buy an investment property. This can be a good option for people looking to generate income and capital through an investment property but it doesn't help people looking to buy their own home with a low deposit.

First Home Super Saver Scheme (FHSSS)

First home buyers are able take out some of the extra money they've placed in their super funds to use for a house deposit. You can unlock up to $15,000 per financial year to a total of $30,000 maximum and put it toward your deposit.

There are also tax benefits to doing this, as super contributions are generally taxed at a lower rate.

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Home Loan Offers

Important Information*
UBank UHomeLoan Variable Rate - Discount offer for Owner Occupiers, P&I Borrowing over $200,000

Take advantage of a low-fee mortgage with a special interest rate of just 3.59% p.a. and a 3.59% p.a. comparison rate.

HSBC Home Value Loan - (Owner Occupier P&I)

Get a low interest rate loan with no ongoing fees. Plus you can make extra repayments and free redraw online. Available with just a 10% deposit.

loans.com.au Essentials - Variable (Owner Occupier, P&I)

A competitive interest rate home loan with interest only options. Interest rate 3.64% p.a.
comp rate of 3.66% p.a.

Tic:Toc Live in Loan Variable Rate - Principal & Interest

Get a very low interest rate and avoid big fees. Apply online for full approval in under 30 minutes and add a 100% offset account for $10 a month.

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43 Responses

  1. Default Gravatar
    BeverlyFebruary 17, 2019

    I am a Pensioner and have maintained my Bankwest homeloan for 12 years. I now am finding I would like to refinance with a lower interest and am wondering about my chances? I still owe 127,000 and really want to be able to reduce the payments that I make now of nearly $400.00 per month. this doesn’t allow for me to have much left for living!! Hope you can help…. Beverly

    • finder Customer Care
      JohnFebruary 18, 2019Staff

      Hi Beverly,

      Thank you for reaching out to finder.

      The page we are on offers an array of lenders that could assist you in refinancing your loan. You may have a side by side comparison done by clicking the “Compare” button up to 4 lenders to see which is the best choice for you. Kindly review and compare your options on the table displaying the available providers. Once you have chosen a particular provider, you may then click on the “Go to site” button and you will be redirected to the provider’s website where you can proceed with the application or get in touch with their representatives for further inquiries you may have.

      Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you. You may also check on the calculator available on the page to see how much your monthly repayment would be based on the figures you enter. Hope this helps!

      Cheers,
      Reggie

  2. Default Gravatar
    MissJanuary 30, 2019

    can I still get a loan if im on a pension

    • finder Customer Care
      NikkiJanuary 31, 2019Staff

      Hi Natalie,

      Thanks for getting in touch! You can apply for a home loan while on pension and you can find providers who may consider your application on this page. It’s helpful to know that given your income will come from pension might limit your success in getting a home loan. As our page further explains – it is mainly because the pension is lower than the normal income of other applicants who are applying and the income level required. If you have assets and believe you can meet lending requirements, it might be a good idea to discuss your position in person with your financial provider or mortgage broker, as applying online may be difficult if you can’t demonstrate your capacity to repay the loan.

      Hope this helps!

      Best,
      Nikki

  3. Default Gravatar
    JonelleJanuary 17, 2019

    Hi there,
    My husband and I have been struggling to save enough deposit for our first home as we pay the rent $460/wk. My husband works only while I look after our 3 and 5 years old boys. Couple of banks say we can just only borrow around low 300k for buying a house.
    Is there any better way for us to buy our first home as soon as possible? thanks :)

    Kind regarts

    Jonelle

    • finder Customer Care
      JohnJanuary 18, 2019Staff

      Hi Jonelle,

      Thank you for reaching out to finder.

      Apart from checking on lenders who can assist you in purchasing your first home, you may want to check your eligibility for a First Home Owners Grant. Clicking this link will give you a short quiz that you can take to check your eligibility. It also defines the eligibility requirement state by state. Hope this helps!

      Cheers,
      Reggie

  4. Default Gravatar
    AnthonyJanuary 10, 2019

    I want to buy a home at Douglas point as owner-occupier, I am able to come up with the 5% deposit and the money to cover the fees and stamp duty through the different avenues in which I have money tied up, eg: shares, cars, savings. But need to find a lender who will do the best mortgage deal, for the area as a couple banks in my area say the postcode is in a high risk area and need 20%.

    • finder Customer Care
      JoshuaJanuary 15, 2019Staff

      Hi Anthony,

      Thanks for getting in touch with finder. I’m sorry to hear that a few banks have rejected your application.

      I would advise that you continue comparing your options using our table above. The lenders on our table provide mortgages with low downpayment options. You can then click on the “Go to site” green button to discuss with them your situation and confirm if they can provide you with your needed loan.

      Please make sure that you’ve read the relevant T&Cs or PDS of the loan products before making a decision. Moreover, check the eligibility requirements as well and consider whether the product is right for you.

      I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

      Have a wonderful day!

      Cheers,
      Joshua

  5. Default Gravatar
    August 22, 2018

    Hi my husband & I have purchased a block about 7 months ago and we want to build a house on it but we are not entitled to the first home owners grant and have very little as a deposit what is the best way to go about it thanks

    • finder Customer Care
      JoshuaAugust 30, 2018Staff

      Hi Donna,

      Thanks for getting in touch with finder. I hope all is well with you. :)

      It is worth noting that most home construction loan lenders will want at least 20% of the total cost put down as a deposit. This is because your lot is not of great value yet without a building on it.

      As this might be the case, it would still be worth checking out our list of home construction loan lenders on this page. On that page, you will see a table that allows you to conveniently compare your options. The table includes interest rates, ongoing fees, and monthly payments, to name a few. Once you find the right one for you, click on the “Enquire now” green button to learn more.

      The page that I just shared with you also includes guides and tips on finding the right construction loan for you. So, it is really worth reviewing.

      I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

      Have a wonderful day!

      Cheers,
      Joshua

  6. Default Gravatar
    GavinJune 13, 2018

    Hello
    I have $14000 saved. Would this some how be enough to get a mortgage on an existing home
    If so what sort of amount of loan value could be attained with annual income of 150k. Just roughly

    Thanks
    G

    • finder Customer Care
      JeniJune 16, 2018Staff

      Hi Gavin,

      Thank you for getting in touch with finder.

      Lenders use different important criteria such as your income, outstanding debt level and credit history to determine your eligibility for a home loan. I suggest that you answer all the info asked on this calculator to see the estimated amount you can borrow. It is also a good idea to seek professional help from mortgage brokers regarding your home loan enquiry.

      I hope this helps. Please feel free to reach out to us if you have any other enquiries.

      Thank you and have a wonderful day!

      Cheers,
      Jeni

  7. Default Gravatar
    ChrisMay 13, 2018

    Is Defence bank offering a good deal on their home loans?

    • finder Customer Care
      JeniMay 14, 2018Staff

      Hi Chris,

      Thank you for getting in touch with finder.

      While we are not allowed to provide specific recommendations, let me give you general information regarding home loan deals from Defence Bank.

      Defence Bank offers several different home loan options for its customers that include competitive interest rates and flexible payment options. Several loans are available just for Australian Defence Force members, which allows them to use the Defence Home Ownership Assistance Scheme (DHOAS) subsidies.

      Some of the home loans offered by Defence Bank are:

      – DHOAS saver home loan
      – DHOAS advantage home loan
      – DHOAS construction home loan
      – Flexi saver home loan
      – Flexi choice home loan
      – Smart mover home loan
      – Interest-only construction home loan
      – Basic variable home loan

      You may go through the details of these loans on this page.

      I hope this helps.

      Have a great day!

      Cheers,
      Jeni

  8. Default Gravatar
    LouiseApril 4, 2018

    I would like to know which of the lenders listed loan to someone looking at buying a home to reside in the postcode 6714 and the percentage deposit
    that is required.

    Thank you

    • finder Customer Care
      NikkiApril 4, 2018Staff

      Hi Louise!

      Thanks for your message and for visiting finder – the leading comparison website & general information service built to give you advice on your buying decision needs. How are you doing today?

      All lenders listed on the page you’re in will be able to help you find to a loan that suits you best. It would be best to contact the lender to ask about the percentage deposit and you may also mention to him/her that you’re purchasing a property in the postcode 6714.

      Also, please be reminded that the standard deposit size for most lenders is 20% of the property’s value. In other words, borrowers need a loan-to-value ratio (LVR) of 80%. Low deposit loans come with an LVR of 90 or 95%. This means you can potentially get a mortgage with just a 5% deposit.

      If you’re buying an $800,000 property, a 20% deposit is $160,000. A 5% deposit is just $40,000. That’s a huge difference.

      You may review the lenders on the table above. Just filter your options and once you’ve decided on the lender, click ENQUIRE NOW.

      Hope this helps!

      Feel free to message us again should you have further questions.

      Cheers,
      Nikki

    • Default Gravatar
      LouiseApril 4, 2018

      Hi Nikki,

      At this stage most lenders I have contacted won’t lend past 70% due to the risk of lending to people in the 6714 postcode due to properties dropping $300,000 – $700,000 in price and the rate of mortgagee repossessed homes. CBA is the only one I can find that lends 90% with LMI.

    • finder Customer Care
      MayApril 5, 2018Staff

      Hi Louise,

      Thanks for getting back.

      I would suggest that you contact a mortgage broker instead. They can take your circumstance into account and can offer you a range of lending options based on your situation.

      Cheers,
      May

  9. Default Gravatar
    justinNovember 16, 2017

    HI, I’m researching for a first home loan,have a small deposit saved a steady well paying job but numerous credit enquiries on my file from a few years ago.
    I also have no credit cards or personal loans but am worried about further enquiries damaging my chances of securing a loan.
    should I talk to my bank or a mortgage broker first?

    • finder Customer Care
      JudithNovember 17, 2017Staff

      Hi Justin,

      Thanks for your question and for reaching out to us. I hope you are doing fine today.

      When you apply for a home loan, banks and lenders check your credit file before you can get approved. Your credit file acts as a representation of your credit history and can include: unpaid bills, getting declined from a loan, late payments, if you have applied too often or if you have declared bankruptcy.

      The lender will check your credit file and if you do have any negative marks, your options will be limited. All your past dealings with borrowed money are collected and is used as an indication of your future ability to make repayments. This is why your credit history is so important when applying for loans. You may read this page for more information on how your credit affect your ability to access home loans and tips on improving your chances of being approved for a home loan. This page is another must-read so you would have an idea on how likely you are to be approved for a home loan.

      One of the tips in buying your first home is to speak to a mortgage broker. You may read this helpful guide for you to know more about the other tips for first home buyers. Moreover, you may click the “Speak to a Mortgage Broker” on the page you’re viewing.

      Please take time to review the relevant details as well as the Product Disclosure Statements / Terms & Conditions when you are comparing options so you would be able to choose the one that suits your needs.

      I hope this helps.

      Cheers,
      Judith

  10. Default Gravatar
    AdelinaOctober 21, 2017

    We are looking for a first home loan, we have a deposit of 60,000 but also have a personal loan for 40,000 which we have been servicing regularly.
    We have a combined income of 9500 per month.
    Is there currently a loan provider that would consider consolidating the personal loan in to the first home loan.

    • finder Customer Care
      JoanneOctober 21, 2017Staff

      Hi Adelina,

      Thanks for reaching out.
      Refinancing to a debt consolidation loan involves reviewing your existing debts (and mortgage), and combine them together into a new mortgage that way you only have one monthly repayment vs. having several. On this page you should see a cross section of lenders who offer debt consolidation refinance.
      Before you decide to refinance your mortgage with a debt consolidation loan, it would be best that you seek expert advise from a licensed mortgage broker or financial adviser

      Cheers,
      Joanne

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