Fintech launches a new low-deposit avenue to home ownership

By Maria Gil · · 2 min read
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Buying a house is a dream for lots of Australians, but the path to ownership may seem almost impossible for many.

CommBank-backed Australian fintech OwnHome wants to make homeownership more accessible and less reliant on the Bank of Mum and Dad, with a new live-to-own (or rent-to-own) model for first home buyers.

OwnHome hopes to diminish the hurdle of saving up for a massive home loan deposit, with a one-time upfront payment of 3% of the home’s value. Then, 1% of that initial payment goes directly into a personal security deposit to allow you to repurchase your home later. 

“We believe homeownership should be accessible to everyone, not just those with access to the Bank of Mum and Dad. Launching in Brisbane is a significant milestone for us, it means our team can help more hard-working Aussies get into their dream homes sooner,” says OwnHome co-founder, James Bowe.

How does live-to-own work?

OwnHome’s model allows home buyers to purchase a house with a one-time upfront payment of 3% of the home’s value, and 1% of that initial payment goes directly into a personal security deposit to allow you to repurchase your home later. 

So if your future home is valued at $1,000,000, you’d pay $30,000 upfront instead of $200,000 for a 20% deposit.

OwnHome will also cover legal fees, stamp duty, pest inspections, building reports and all other additional fees and taxes.

“Once moved in, we also support our customers with renos. Because owning a home is more than just having a roof over your head, it’s all the power that comes with it, and that could be as little as drilling a hole in your wall, or as big as adding in a family pool,” says Bowe.

Saving up for your home in increments

In theory, OwnHome owns your house and is your landlord, until you are ready to complete the total purchase - similar to a regular home loan set-up.

To do this, OwnHome’s model adopts a security deposit approach: about 35% of your fortnightly rent payments will go towards your security deposit, which will build up over time and allow you to eventually repurchase the property. 

OwnHome’s live-to-own model is currently only available in Greater Metropolitan Sydney, Wollongong, Newcastle, Brisbane and the Gold Coast. 

When it comes to buying a home, it’s best to always do your research and talk to a financial expert. Even a product with a smaller deposit doesn’t always make the buying journey easier. 

Check out Mozo's home loan guides if you’re looking for more information about home ownership and how to buy a house. Alternatively, if you want to compare live-to-rent with home loans, you can start with our home loan comparison table below.

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Last updated 24 November 2024 Important disclosures and comparison rate warning*

Home loan comparisons on Mozo

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  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

  • Fixed Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <95%
    Interest rate
    5.69 % p.a.
    Fixed 3 years
    Comparison rate
    6.28 % p.a.
    Initial monthly repayment
    $2,899
    Go to site

    Get the security of a competitive fixed rate home loan for 2 years with IMB. Get up to $4,000 cashback (T&Cs apply). Up to 12 months repayments in advance without penalties. Free Internet and Mobile Banking redraws (T&Cs apply). Up to a 30 year loan term. Split loan available. No offset account.

  • Fixed Rate

    • Owner Occupier
    • Principal & Interest
    • <80% LVR
    Interest rate
    5.74 % p.a.
    Fixed 3 years
    Comparison rate
    6.81 % p.a.
    Initial monthly repayment
    $2,915

    Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

  • Budget Home Loan

    • LVR <80%
    • Owner Occupier
    • Principal & Interest
    Interest rate
    6.04 % p.a.
    Variable
    Comparison rate
    6.07 % p.a.
    Initial monthly repayment
    $3,011
    Go to site

    Enjoy a discounted variable home loan from IMB. Get up to $4,000 cashback (T&Cs apply). Life-of-loan discount off IMB’s standard variable interest rate. Unrestricted additional repayments. Free Internet and Mobile Banking redraws (T&Cs apply). No monthly fees to pay. Up to a 30 year loan term. Split loan available. No offset account.

  • Mortgage Simplifier

    • LVR<80%
    • Owner Occupier
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.17 % p.a.
    Initial monthly repayment
    $3,043

    Get a competitive variable rate with ING’s Mortgage Simplifier. Free extra repayments, no monthly or annual fees. Freedom to make free extra repayments or redraws.

  • Elevate

    • Owner Occupier
    • Principal & Interest
    • <80% LVR
    Interest rate
    6.18 % p.a.
    Variable
    Comparison rate
    6.18 % p.a.
    Initial monthly repayment
    $3,056

    Get competitive rates on loan terms of 5 to 30 years with the Aussie Elevate Home Loan. Structure your loan with up to five splits. Make additional repayments (T&Cs apply). Offset accounts available. Unlimited redraw using your online banking account. Choose from weekly, fortnightly or monthly payments For loan amounts from $10,000 to $5 million.

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* 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.

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