Low Deposit Home Loans

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

A low deposit home loan lets you borrow more than 80% of a property's value. This means you can save a 5-10% deposit and borrow the rest. It's a popular option for borrowers looking to buy their first home.

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

Bank of Queensland Home Loan Offer

Bank of Queensland Fixed Rate Home Loan - 3 Year Fixed Rate Discount Rate $150k+ <90% LVR (Owner Occupier, P&I)

3.39 % p.a.

fixed rate

4.30 % p.a.

comparison rate

Bank of Queensland Home Loan Offer

With the Bank of Queensland Fixed Rate Home Loan - 3 Year Fixed Rate Discount Rate $150k+ <90% LVR home buyers can lock in a very competitive fixed interest rate for 3 years.

  • Interest rate of 3.39% p.a.
  • Comparison rate of 4.30% p.a.
  • Application fee of $300
  • Maximum LVR: 90%
  • Minimum borrowing: $150,000
Enquire now
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Compare mortgages with low deposit options

Rates last updated June 25th, 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
3.39%
4.30%
$300
$10 monthly ($120 p.a.)
90%
A low fixed rate loan that lets you borrow up to 90% of your property's value.
3.47%
3.48%
$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.
3.57%
3.58%
$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.
3.54%
3.57%
$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.
2.99%
4.19%
$0
$0 p.a.
90%
Get one of the lowest rates on the market with this fixed rate mortgage. Available with just a 10% deposit. Guarantor option available. NSW, QLD and ACT residents only.
3.57%
3.61%
$0
$0 p.a.
95%
A simplified mortgage with a low interest rate and a redraw facility. Approval fee waived for a limited time.
3.70%
3.72%
$0
$0 p.a.
90%
Save on interest with a free 100% offset account and buy your property with just a 10% deposit.
3.49%
3.88%
$0
$349 p.a.
90%
Get a sharp rate plus package discounts and a 100% offset account.
3.59%
4.35%
$600
$0 p.a.
95%
Competitive rates for fixed for 3 years with no ongoing fees.
3.49%
4.08%
$500
$0 p.a.
95%
Competitive 3-year rate for homeowners. Comes with a low deposit option and 100% offset account.
3.49%
4.40%
$445
$6 monthly ($72 p.a.)
90%
NSW and ACT customers only. 2 years fixed interest terms and free access to redraw facility online.
3.49%
4.11%
$0
$375 p.a.
90%
Get a very competitive 3 year fixed rate with low fees and only a 10% deposit.
3.63%
4.65%
$0
$0 p.a.
90%
A low fixed rate package loan that's available with a 10% 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. $500 cashback offer for first homebuyers borrowing over 80% and paying LMI.
3.47%
3.57%
$0
$8 p.a.
90%
First home buyers can get a competitive variable rate, avoid big fees and use a 100% offset account. Available with a 10% deposit.
3.69%
3.69%
$0
$0 p.a.
95%
Competitive, flexible rate mortgage with simple features and low fees. This loan is available with just a 5% deposit.
3.49%
3.52%
$500
$0 p.a.
95%
This mortgage combines a very sharp interest rate with a 100% offset account and it's available with a 5% deposit.
3.44%
3.48%
$0
$10 monthly ($120 p.a.)
90%
This is a flexible variable loan with low fees and a 100% offset account. Available with a 10% deposit.
3.89%
4.29%
$0
$395 p.a.
95%
A package loan that offers discounts and a 100% offset account.
3.44%
4.39%
$300
$10 monthly ($120 p.a.)
90%
Home buyers can lock in a very competitive fixed interest rate for 2 years.
3.49%
4.32%
$445
$6 monthly ($72 p.a.)
90%
NSW and ACT customers only. 3 years fixed interest terms and free access to redraw facility online.
3.49%
3.49%
$0
$10 monthly ($120 p.a.)
95%
Lock in a competitive rate for three years while you pay off your home. 100% offset account attached.
3.49%
3.88%
$0
$349 p.a.
90%
Package your loan with other AMP products and save on rates and fees.
3.49%
3.48%
$0
$10 monthly ($120 p.a.)
90%
Fix to a low interest rate for two years while paying off your home and taking advantage of a 100% offset account.
3.64%
4.49%
$300
$10 monthly ($120 p.a.)
90%
Low fixed rate loan for home buyers. Available with a 10% deposit. 100% offset account attached.
3.79%
4.99%
$445
$6 monthly ($72 p.a.)
90%
NSW and ACT customers only. A 3 years fixed rate investor which allows extra repayments to be made.
2.99%
4.40%
$0
$395 p.a.
90%
Get one of the lowest fixed mortgage rates on the market plus a 100% offset account. Available with just a 10% deposit. Guarantor option available. NSW, QLD and ACT residents only.
3.54%
4.06%
$0
$10 monthly ($120 p.a.)
90%
Get a low discounted rate for 2 years plus a 100% offset account. And you can get the loan with a 10% deposit.
3.49%
4.34%
$0
$395 p.a.
90%
Enjoy discounts on banking products and insurance with this package loan. NSW, QLD and ACT residents only.
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.
3.69%
3.86%
$0
$0 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. Approval fee waived for a limited time.
3.57%
3.58%
$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.

Compare up to 4 providers

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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 10 or even 20 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 it 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 and upfront lender's fees.

Don't forget to add 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 first. Credit card debt is a bigger red flag for a lender than a 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 a deposit.
  • 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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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.

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49 Responses

  1. Default Gravatar
    SantoApril 5, 2019

    looking to buy a country farmlet between5 to 10 acres with a 4bed dwelling and much shedding , property located in country Victoria and I only have 5% for deposit. Could you direct me to institutions that could provide finance just under $300.000

    • Avatarfinder Customer Care
      JohnApril 8, 2019Staff

      Hi Santo,

      Thank you for reaching out to Finder.

      The page we are on offers lenders that you could reach out to specific to the loan you are requesting but for the property you are looking for you may want to reac