Your selected home loans
Owner Occupier, Principal & Interest
Only 5% deposit required to apply. Low upfront costs to pay. No LMI Required. Unlimited Redraw and additional repayments. No Application or ongoing fees. No guarantors or equity sharing required.
Only 5% deposit required to apply. Low upfront costs to pay. No LMI Required. Unlimited Redraw and additional repayments. No Application or ongoing fees. No guarantors or equity sharing required.
Read our Mozo Review to learn more about the Sucasa Ultra Low Rate <95% LVR
Your selected home loans
Owner Occupier, Principal & Interest
Enjoy the security of a competitive fixed interest rate from Up. No application, monthly, annual, redraw, or discharge fees to pay. Up to 50 free offset accounts available. Up home loans are only available to owner-occupiers buying or refinancing in major Australian cities. Up is 100% owned by Bendigo Bank. New joiners get $10 by signing up to the app using code UPHOMEMOZO. (T&Cs apply). Mozo Experts Choice award winner.
Enjoy the security of a competitive fixed interest rate from Up. No application, monthly, annual, redraw, or discharge fees to pay. Up to 50 free offset accounts available. Up home loans are only available to owner-occupiers buying or refinancing in major Australian cities. Up is 100% owned by Bendigo Bank. New joiners get $10 by signing up to the app using code UPHOMEMOZO. (T&Cs apply). Mozo Experts Choice award winner.
Read our Mozo Review to learn more about the Up Home Fixed Rate
Your selected home loans
Owner Occupier, Refinance Only, LVR <80%
For refinancers only. 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 in as little as 10 minutes.
For refinancers only. 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 in as little as 10 minutes.
Read our Mozo Review to learn more about the Unloan Unloan Variable
Your selected home loans
Owner Occupier, Principal & Interest
Enjoy a competitive variable interest rate from Up. No application, monthly, annual, redraw, or discharge fees to pay. Up to 50 free offset accounts available. Up home loans are only available to owner-occupiers buying or refinancing in major Australian cities. Up is 100% owned by Bendigo Bank. New joiners get $10 by signing up to the app using code UPHOMEMOZO. (T&Cs apply) Mozo Experts Choice award winner.
Enjoy a competitive variable interest rate from Up. No application, monthly, annual, redraw, or discharge fees to pay. Up to 50 free offset accounts available. Up home loans are only available to owner-occupiers buying or refinancing in major Australian cities. Up is 100% owned by Bendigo Bank. New joiners get $10 by signing up to the app using code UPHOMEMOZO. (T&Cs apply) Mozo Experts Choice award winner.
Read our Mozo Review to learn more about the Up Home Variable Rate
Your selected home loans
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A home loan deposit is a downpayment on your mortgage to establish security in your loan. In Australia, the standard home loan deposit size is 20% of the property's purchase value.
This means that if you are buying a property for $500,000 you would need a deposit of $100,000.
But unless you have a cool fortune lying around, this can take awhile for most people to save.
This is where low deposit home loans come in. Instead of paying 20% of the properties value, you only pay around 5% - 10%. Since the GFC, it's unfortunately not possible to get a no-deposit home loan.
Low deposit home loans have some drawbacks, like higher interest rates, stricter lending criteria, and the added expense of lender's mortgage insurance(LMI).
However, they can still be a useful option to consider, especially for first home buyers.
Unless you have a family guarantor or first home owners grant, low-deposit home loans will require you to pay lenders mortgage insurance (LMI).
All home loans that have a loan-to-value ratio (LVR) above 80% are required to take out this insurance. The insurance cost is added to your home loan amount. LMI protects the lender financially if you default on your mortgage repayments.
How much you need to pay for LMI will depend on the amount you are borrowing and your LVR. Just keep in mind that LMI isn’t transferable.
Additionally, LMI doesn't protect you if you can't meet your mortgage repayments. You would need to take out mortgage or income protection insurance to cover you in case of illness or redundancy.
Using a low deposit home loan can be a helpful way of buying property. That being said, high interest rates and LMI can feel like added expenses.
However, if you are a first home buyer in Australia, you may be eligible for first home owner grants (FHOGs) or first home buyer schemes.
With the First Home Guarantee, for example, the government acts as your guarantor. This means it provides additional security by adding to your home loan deposit.
Keep in mind that the scheme is kept to participating lenders, so you be sure to check that your loan provider actually is a part of the scheme.
Income limits apply and not everyone is eligible. You can learn more in the button below.
FHOG eligibility criteria has expanded in many states and territories. Now, any two eligible first home buyers can apply, including friends and siblings.
If you’re a borrower who’s looking to get into the property market now, whether an investor or first time home buyer, then there are plenty of advantages to getting a low deposit home loan.
While a low deposit home loan can be useful for borrowers who are looking to get on the property ladder early, there are some drawbacks that you should consider.
You can estimate your mortgage repayments with Mozo's free mortgage repayments calculator.
Just plug in your loan amount and term and we'll instantly tell you what your monthly repayments will be so that you can begin budgeting.
Otherwise, head straight to our comprehensive search tool and get a ranking of loans based on price, or compare options to find the best mortgage for you.
The application process for a low-deposit home loan can involve a fair amount of preparation. Generally, you should check you have your documentation in order, such as:
It’s also a good idea to make sure that you do your research for the loan you’re looking to get, as there are other costs associated with a home loan such as stamp duty and legal fees.
If you are planning to buy a home with a small deposit, then finding the right home loan is essential. Just because low deposit mortgages have higher interest rates, doesn't mean you can't find a good deal!
Our home loans interest rates page is a great place to find a competitive interest rate, it can also help you compare a range of loan features from offset accounts to extra repayments.
Yes, there are plenty of lenders that allow borrowers to take out home loans with a deposit as low as 5% (so a 95% loan-to-value ratio).
A quick look in the Mozo database shows that low deposit borrowers will be able to pick and choose between a variety of big banks, credit unions, and online lenders, though the interest rates on offer vary greatly.
Loan-to-value ratio (LVR) is the size of your home loan divided by the property purchase price.
It shows lenders how much of the home loan covers the property purchase price. An 80% LVR means the loan covers 80% of the property's value.
Having a high LVR is seen as risky by lenders because the borrower owns less of the property.
Low deposit home loans usually come with the same features as standard home loans, just with higher interest rates and stricter lending criteria.
Low deposit home loans can come with standard fees, like application, property valuation, settlement, service, and discharge fees. You may also have to pay Lenders Mortgage Insurance (LMI).
The main drawbacks of a low deposit home loan are the higher interest rates, stricter lending criteria (i.e. reduced borrowing power), and added cost of Lenders Mortgage Insurance (LMI).
Learn what you need to know about refinancing, including tips and traps, in our helpful guides. See all
Get the latest on property market trends, interest rates, and lending news from Mozo's expert writers. See all
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We had a great experience with CommBank over the last 6 years, it was easy to get a rate review every 6 months and the customer service was great, we have no complaints about our experience and would happily recommend.
Read full reviewWe had a great experience with CommBank over the last 6 years, it was easy to get a rate review every 6 months and the customer service was great, we have no complaints about our experience and would happily recommend.
Easy to contact but had incorrect mailing details for our home loan so for over 7 years sent all our mail,elsewhere.
Read full reviewEasy to contact but had incorrect mailing details for our home loan so for over 7 years sent all our mail,elsewhere.
Great service
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