Best low deposit home loans of 2018 revealed

By Ceyda Erem · Monday, 26 March 2018 · 3 min read

Fact Checked

If you’re currently saving for a house deposit, then you’ve probably been scrimping and saving everywhere you can. But even the most frugal spenders can often find stacking up a 20% deposit almost impossible.

But don’t let that discourage you, especially since the Mozo Experts have just announced the winners of our Experts Choice Home Loan Awards! So without further ado here are some of the best low deposit home loans of 2018, handpicked by the Mozo editors.

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Important disclosures and comparison rate warning*

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Comparison rate warning

WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

How Initial Monthly Repayments figures are estimated

Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

NAB - Base Variable Rate Home Loan

3.69% variable rate (3.73% comparison rate*)
No monthly or yearly fees (application fee applies)
Borrow with just a 5% deposit

Find out more

What we think:

If you prefer to stick with the big banks for your financial products, then look no further than the NAB Base Variable Rate Home Loan. This loan allows you allows you to borrow amounts starting from $20,000 and has a free extra repayments and redraw facility, just as long as it hits the minimum $2,000 requirement! Along with no ongoing fees, you’ll be able to apply with a deposit as little as 5%.

Newcastle Permanent - Discounted Variable Home Loan

3.64% variable rate (4.03% comparison rate*)
Borrow up to 90% of property’s value
Fee waivers on your credit card, personal loans and car loans

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What we think:

Last but certainly not least, our last low deposit loan is the Newcastle Permanent packaged Variable Home Loan. You can apply for this loan with just a 10% deposit and enjoy perks like a $0 application fee for any personal or car loans you sign up for and no annual fee on your credit card. Along with a competitive 3.64% variable rate, there’s a free extra repayments facility and a 100% offset account, helping your pay off your loan faster. It’s no wonder Newcastle Permanent was named Home Lender of the Year!

RACQ Bank - Mortgage Saver Special

3.74% variable interest rate (3.74% comparison rate*)
Borrow with a 5% deposit
Unlimited free extra repayments

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What we think:

If you’re a first home buyer struggling to make your mark in the property market, then the RACQ Bank Mortgage Saver may be the loan you’ve been searching for. This low cost loan allows you to apply with a deposit as little as 5% and has no application or annual fees! You’ll also be able to make as many extra repayments as you’d like to save on interest and redraw these repayments for free if you need to.

IMB Bank - Budget Home Loan

3.69% variable rate (3.69% comparison rate*)
Borrow with a 10% deposit
Free extra repayments and redraw facility

Find out more

What we think:

Who says a home loan has to stretch your budget? For a limited time only, you can apply for the IMB Bank Budget Home Loan and receive a low variable and comparison rate of 3.69%. This loan also features no upfront or ongoing fees and has a maximum LVR of 90%. You’ll also have unlimited free extra repayments and the option to redraw any of these repayments at no extra cost.

Want to compare more home loans? Check out the latest rates from 80 lenders at Mozo’s home loan comparison hub.

For a full list of Experts Choice winners, head over to our Experts Choice awards page.

The Mozo Experts Choice Awards recognise products that deliver exceptional value or benefits to consumers. Our judges base their decision on hard-nosed calculations of value to the consumer, using Mozo’s extensive product database and research capacity. Product providers don’t pay to be in the running and we don’t play favourites. Award winners may choose to purchase a licence to use their award in their own marketing and may choose to list products on the Mozo website in a way that may generate revenue for Mozo.

^* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

^** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

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