Low Deposit Home Loans

You can buy a property with just a 5% deposit. Here's how low deposit home loans work.

There are many options available for home buyers who don't want to save up a big deposit. This page has over 20 low deposit home loans to compare and useful information on all the ways you can get these loans, plus extra costs and pitfalls to be aware of.

Home Loan Offer

Bankwest Complete Home Loan Package Variable - LVR <=90% (Owner Occupier, P&I)

3.70 % p.a.

variable rate

4.13 % p.a.

comparison rate

Home Loan Offer

With the Bankwest Complete Home Loan Package you can enjoy a home loan with 100% offset account, a credit card with the annual fee waived and additional banking products with savings included.

  • Interest rate of 3.70% p.a.
  • Comparison rate of 4.13% p.a.
  • Application fee of $0
  • Maximum LVR: 90%
  • Minimum borrowing: $200,000
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Compare mortgages with low deposit options

Rates last updated May 26th, 2018
$
Loan purpose
Offset account
Loan 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
3.70%
4.13%
$0
$395 p.a.
90%
Package your loan with an eligible credit card for discounts on rates and fees, and get a 100% offset account.
3.89%
3.91%
$0
$0 p.a.
95%
A low deposit mortgage for aspiring home owners. Fees are low and you can make extra repayments.
3.89%
4.87%
$0
$0 p.a.
90%
Borrow up to 90% of the value of the property you're buying and pay no application or ongoing fees.
3.68%
3.69%
$0
$0 p.a.
90%
Get one free online redraw per month and pay no ongoing fees. Application fees are waived for loans above $150,000.
3.89%
3.95%
$600
$0 p.a.
95%
Borrow up to 95% LVR with no ongoing fee.
3.69%
4.06%
$0
$349 p.a.
90%
Package your loan with other AMP products and save on rates and fees.
3.79%
3.81%
$0
$0 p.a.
90%
Buy your home with just a 10% deposit, few fees and a reasonable interest rate.
3.96%
3.98%
$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.
3.85%
4.82%
$600
$35 monthly ($420 p.a.)
90%
Make up to $10,000 in extra repayments per year and take advantage of a flexible repayment schedule.
3.69%
4.09%
$0
$395 p.a.
95%
A package loan that offers discounts and a 100% offset account.
3.68%
3.69%
$0
$0 p.a.
95%
This variable rate loan offers flexible repayments and a redraw facility. Available with a 5% deposit.
3.59%
3.99%
$0
$395 p.a.
95%
Get interest rate discounts and waived fees on this package loan with a 100% offset account.
3.87%
3.87%
$0
$10 monthly ($120 p.a.)
90%
Get Virgin Velocity Points at settlement, monthly and every three years, plus the option to make up to $10,000 a year in extra repayments.
3.85%
4.05%
$0
$350 p.a.
95%
This high LVR fixed rate loan allows you to borrow up to 95% of the value of the property you're buying.
3.99%
5.17%
$600
$0 p.a.
90%
Competitive rates for fixed for 3 years with redraw facility.
4.09%
4.49%
$0
$395 p.a.
90%
Enjoy all the benefits of a full-featured package investment loan, including a 100% offset account.
3.77%
3.81%
$200
$0 p.a.
95%
A simplified mortgage with a low interest rate and a redraw facility.
4.15%
4.76%
$600
$0 p.a.
90%
A competitive rate with no ongoing fee and borrow up to 90% LVR.
3.94%
4.79%
$0
$0 p.a.
95%
A low 3-year fixed rate with the option to split your loan for free.
3.69%
4.93%
$600
$0 p.a.
95%
Competitive rates for fixed for 3 years with no ongoing fees.
4.50%
4.82%
$600
$0 p.a.
90%
A variable interest-only loan to fund your investment. Get this loan with a 10% deposit.
3.90%
4.78%
$600
$0 p.a.
95%
A competitive fixed rate mortgage with split facilities and extra repayments. You can get this loan with a 5% deposit.
5.40%
5.59%
$0
$15 monthly ($180 p.a.)
95%
An online bad credit home loan for those who may have had some bad marks on their credit history.
4.09%
4.12%
$0
$0 p.a.
95%
Buy a home with just a 5% deposit and get flexible repayment options and a redraw facility.
3.64%
3.65%
$0
$0 p.a.
95%
Family pledge option available. Get a special discount off Bank of Melbourne's basic variable rate.
3.89%
4.88%
$0
$395 p.a.
95%
Refinance from your existing loan and get a $1,250 rebate. Terms and conditions apply. Plus get discounts on a range of Westpac products.
3.89%
4.97%
$0
$395 p.a.
95%
Get discounts on a range of Commonwealth Bank products and enjoy the option of fee-free extra repayments during the fixed term.
3.99%
4.92%
$0
$395 p.a.
95%
Borrow up to 95% LVR (subject to approval) and fix your interest repayments for the next 3 years.
4.45%
4.85%
$0
$395 p.a.
95%
Pay no application fee with 100% offset account with redraw facility and borrow up to 95% LVR.
4.62%
4.67%
$500
$0 p.a.
95%
Ideal for first home owners or anyone who wants a no-frills, basic variable rate home loan.
5.24%
5.38%
$600
$8 monthly ($96 p.a.)
95%
The Westpac Rocket Repay Home Loan lets borrowers to own their home sooner with a 100% offset to save on interest.
3.99%
4.00%
$0
$0 p.a.
95%
Commonwealth Bank are currently waiving the $600 establishment fee for customers who take out this home loan.
4.70%
5.09%
$0
$395 p.a.
95%
A package home loan with discounted interest rate.

Compare up to 4 providers

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Low deposit home loan offers

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?

No deposit home loans 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.

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 Occupied Variable P&I Rate — borrowing $700,000 or more

Pay no application or ongoing fees and get access to a redraw facility and flexible repayment schedule. Refinance to a UBank loan and you could get $1,000 in your USaver account (offer conditions apply).

Newcastle Permanent Building Society Premium Plus Package Home Loan - New Customer Offer ($150,000+ Owner Occupier, P&I)

New borrowers or refinancers from another lender get a discounted rate with this package loan.

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31 Responses

  1. Default Gravatar
    ChrisMay 13, 2018

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

    • Staff
      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

  2. 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

    • Staff
      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.

    • Staff
      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

  3. 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?

    • Staff
      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

  4. 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.

    • Staff
      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

  5. Default Gravatar
    September 6, 2017

    why can’t income protection be classed as income?

    • Staff
      MaySeptember 8, 2017Staff

      Hi Belle,

      Thank you for your inquiry.

      As the term implies, income protection insurance is your “protection” by the time you lose your income if you are no longer able to work due to injury or sickness. So lenders may not consider this as your proof of income.

      In terms of a home loan, your financial situation such as your income, assets, liabilities and credit history will be evaluated by the lender when they consider your application. As for your income, lenders would need to check whether you have income from an employment, business, pension etc. Please note though that each lender has their own set of eligibility requirements and this differ from lender to lender. On this page you can find some tips about lending criteria for home loans, which you may find useful.

      Cheers,
      May

  6. Default Gravatar
    JezameAugust 25, 2017

    Hi, when I was in my mid 20’s I became bankrupt. Now in my late 30’s it is no longer on my credit record, and I have $40k in savings averaging $3k per month. Do I have to declare my past bankruptcy even if well over 10 years ago? And if I do, would I still be able to access the 95% loans?

    • Default Gravatar
      JonathanAugust 26, 2017

      Hello Jezame,

      Thank you for your question.

      Yes. Although information is eventually cleared from your credit file, if you’re declared bankrupt, your name and personal details are recorded on the National Personal Insolvency Index (NPII) permanently. It is a public record that can be viewed by anyone for a fee and maintained by the Australian Financial Security Authority (AFSA). Your lender would verify the date of discharge and will weigh in your current financial situation. If you have not declared this and your creditor found out, this may result to exclusion immediately.

      95% loans is generally available for those with good or higher credit standings, as higher mortgage ratio increases “Default risk”. You may instead check Home Loans For Discharged Bankrupts.

      Hope this helps.

      Cheers,
      Jonathan

  7. Default Gravatar
    RobbieAugust 12, 2017

    Hi
    I am 54 my wife is 44.I been working same job last 11 years we wan’t to build a new home. we have about $10,000 in savings never own our own home we are eligible for Victoria first home owners grant would banks look at us ?

    • Staff
      ArnoldAugust 12, 2017Staff

      Hi Robbie,

      Thanks for your inquiry.

      The $10,000 First Home Owner Grant is available to eligible applicants buying or building a new home valued at up to $750,000. From 1 July, a $20,000 First Home Owner Grant will be available to applicants buying or building a new home in regional Victoria valued up to $750,000.

      Also, if you are buying your first home and it is valued at less than $600,000, you may be eligible for a duty reduction of up to 50%. This concession applies to new and established homes.

      From 1 July, first home buyers purchasing a new or established home valued below $600,000 will be exempt from stamp duty, while buyers purchasing a new or established home valued between $600,000 and $750,000 will be eligible for a stamp duty concession, applied on a sliding scale.

      Please see the full guide here.

      Hope this information helped.

      Cheers,
      Arnold

  8. Default Gravatar
    sueJuly 8, 2017

    My partner is 52 and is a self employed tiler who owned a house over twenty years ago. We have one child. I am a stay at home mum whob never owned a house. Can he access his Super to purchase a home in Qld State and would we qualify for the first home loan grant? Would we need to apply for low document loan given he is self employed & can you explain low document application loan verses a standard loan?

    • Default Gravatar
      JonathanJuly 11, 2017

      Hello Sue!

      Thanks for the inquiry! :)
      One of the determination in QLD government in qualifying for the grant is you or your spouse should not held an interest in residential property before 1 July 2000, regardless of how the property was used. You can check the full guide on this page.

      As for the difference between low doc loans versus a regular home loan, two main points. First is the requirement, wherein low doc loans is more beneficial for self-employed because they provide self-certification document instead of traditional proof of income such as pay stubs, income tax return and company financials. Second is on the rates, generally low doc loans due to their intrinsically higher risk, have a bit higher rate. Although some lenders recently give almost the same rates for low doc and regular home loans. You can check our full guide on this page.

      Hope this helps.

      Cheers,
      Jonathan

  9. Default Gravatar
    JasonAugust 17, 2016

    HI, Which lenders will take A 5% deposit and also let you put the LMI on top of that?

    • Staff
      MayAugust 17, 2016Staff

      Hi Jason,

      Thank you for your question.

      On this page, you can actually compare a range of loans in the market with only 5% deposit.

      As for the LMI, we only have limited information about this but usually, LMI will be taken out by a lender when they allow you to take out a loan with a higher LVR, say 95%. Also, as LMI is not automatically applied for, you must organise it with the application to the loan.

      Seeking a professional advice from a mortgage broker would also be best as they’ll be able to take all your circumstances into account and offer you a range of lending options.

      Cheers,
      May

  10. Default Gravatar
    kylieMarch 26, 2016

    What sort of grants are available to first home buyers? How do u go about applying for them and how can u apply them to your deposit?

    • Staff
      BelindaMarch 29, 2016Staff

      Hi Kylie,

      Thanks for reaching out.

      We have a first home owner grant (FHOG) guide which outlines the grants and concessions available for first home buyers in each state and territory.

      To be eligible for the FHOG, you must satisfy a range of criteria but generally you must be aged 18 years and over, at least one applicant must be a permanent resident or Australian citizen and all applicants cannot have previously owned a residential property in Australia.

      If you believe you’re eligible for the FHOG in your state, then you can visit your state government department for details about how to apply. Generally, you can apply through a FHOG approved agent or through the Office of State Revenue (OSR).

      All the best,
      Belinda

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