Fintech launches a new low-deposit avenue to home ownership

By Maria Gil · · 2 min read
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child running to dad across the lawn

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.

Home loan comparisons on Mozo - last updated 20 May 2024

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure
  • Featured Product
    Mozo Expert Choice Badge
    Unloan Variable

    Owner Occupier, LVR <80%

    interest rate
    comparison rate
    Initial monthly repayment
    5.99% p.a. variable
    5.90% p.a.

    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.

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    Details
  • Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR<70%

    interest rate
    comparison rate
    Initial monthly repayment
    6.25% p.a.
    fixed 3 years
    6.20% p.a.

    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.

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    Details
  • Discounted Home Value Loan

    Owner Occupier, Principal & Interest, LVR 70-80%

    interest rate
    comparison rate
    Initial monthly repayment
    6.09% p.a. variable
    6.09% p.a.

    Enjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Settlement fee waived on new borrowings from $50,000 (T&Cs apply).

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  • Featured Product
    Mozo Expert Choice Badge
    Unloan Variable

    Investment, LVR <80%

    interest rate
    comparison rate
    Initial monthly repayment
    6.29% p.a. variable
    6.20% p.a.

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

    Compare
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    Details
  • Flex Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR 60-70%

    interest rate
    comparison rate
    Initial monthly repayment
    5.99% p.a.
    fixed 3 years
    6.41% p.a.

    Competitive fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 20% deposit required.

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    Details

* 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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