A low deposit home loan requires an initial deposit of just 10% or less of a property’s value. This offers first home buyers a chance at ownership when they don’t have enough money saved for a standard home loan.
Remember, you will likely need to buy Lenders mortgage insurance (LMI) if you choose to take out a home loan with less than a 20% deposit. This can be a trade-off for buyers, who on one hand can put down a lower deposit but on the other, must meet an extra ongoing cost that’s paid back over time. Start comparing home loans now!
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2.78% p.a. variable
2.79% p.a.
LVR<90%, Owner Occupier, Principal & Interest
2.78% p.a. variable
2.79% p.a.
No monthly account keeping fee, no ongoing annual fee and no loan establishment fee on new lending of $150,000 or more. Get a $2,000 cash bonus when you refinance with an eligible Suncorp Bank Home Loan of $250k+. T&Cs & eligibility criteria apply. Minimum 10% deposit.
2.79% p.a. variable
2.81% p.a.
Owner Occupier, Principal & Interest
2.79% p.a. variable
2.81% p.a.
This low-rate home loan that could save you thousands! With no monthly or ongoing fees and the ability to make unlimited additional repayments. This home loan from popular online lender loans.com.au also features unlimited free redraws with no minimum redraw amount.
2.74% p.a. variable
2.75% p.a.
Owner Occupier, Principal & Interest, 80-90% LVR
2.74% p.a. variable
2.75% p.a.
Get smart, flexible and cost-effective rates from homeloans.com.au. Complimentary 100% offset account and free online redraw. Unlimited additional repayments. Zero application or annual fees. Fast online application process. Only 10% deposit required.
2.39% p.a.
fixed 3 years
3.08% p.a.
Owner Occupier, Principal & Interest
2.39% p.a.
fixed 3 years
3.08% p.a.
The IMB Fixed Rate Home Loan gives you peace of mind with the security of fixed loan repayments. You can also pay up to 12 months repayments in advance without penalty.
2.34% p.a.
fixed 3 years
3.67% p.a.
Owner Occupiers with Orange Advantage, Principal & Interest
2.34% p.a.
fixed 3 years
3.67% p.a.
Know exactly what your repayments will be, and you can fix your rate for up to 5 years. No monthly, annual or transaction fees and it's free to make extra repayments.
2.65% p.a. variable
2.68% p.a.
Owner Occupier, Principal & Interest
2.65% p.a. variable
2.68% p.a.
Yard’s low-rate variable home loan is packed with all features – unlimited additional repayments, free redraw, 100% offset account. Enjoy a simple online application. Only a 10% deposit needed.
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Views, news, tips and guides to help find the home loan for you.
In Australia, the standard down payment that you need when purchasing property is 20%. This means that if you are buying a property for $500,000 you would need a deposit of $100,000. Now, saving up a $100,000 deposit is no walk in the park and would take most people several years to achieve.
An alternative option to saving the deposit upfront is to take out a low deposit home loan. These home loans will only require you to have a deposit around 5 -10% instead of the required 20%. In home loan terms this is often called the LVR, or loan to value ratio, so if you have a 10 percent deposit your LVR will be 90%.
In recent years (post GFC) the lending criteria for home loans has been tightened so it is no longer possible to get a no deposit home loan. Even 5% deposit home loans are becoming rarer so if you are planning on purchasing property it is a good goal to aim for at least having a 10 percent deposit.
Yes, If you decide to opt for a low deposit home loan you will need to pay lenders mortgage insurance or LMI. All home loans that have a LVR of 80% or more are required to take out this insurance. The cost for this insurance is added to your home loan amount.
It is important to understand that this insurance does not protect you if you can't meet your repayments. You would need to take out mortgage or income protection insurance to cover you in case of illness or redundancy. LMI is an insurance you pay to protect the bank or mortgage lender should you default on your repayments.
How much you need to pay for LMI will depend on the amount you are borrowing and your LVR. The lender will tell you how much this will be.
LMI is also not transferrable so if you move or switch loans you will not be able to transfer this insurance to your new lender or property. You would need to pay this again if you have not yet reached an LVR of 80%.
If you are planning on purchasing your first home with a small deposit, then finding the right home loan is essential. Because while buying your first home does mean you’ll pay Lenders Mortgage Insurance (LMI), it doesn’t mean you still can’t a great deal on your home loan. Our Home Loans Interest Rates page can not only help you find a competitive interest rate, but it also help you compare a range of loan features from offset accounts to extra repayments.
We've made this super easy with our handy 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.
Or simply head straight to our comprehensive search tool and get a ranking of loans based on price.
There are so many types of home loans available to borrowers these days that you can really cherry pick the features that will best suit you.
Interest rates on low deposit home loans are generally slightly higher and you may find that the borrowing limits are also lower on these loans so before you start property hunting it is a good idea to get an idea of the maximum loan amount available if you do have a smaller deposit.
Other features worth reviewing include:
offset account feature. Having an offset account attached to your home loan can save you a lot of money in interest over the life of your loan. Think of an offset as a bank account and the balance in that account is offset against your loan amount. So say you have $3000 in your offset bank account but you owe $500,000 on your home loan. Instead of paying interest on the full loan amount you will only pay interest on $497,000. This may not seem like a lot but over 25 years this adds up.
extra repayments. Having the ability to make extra repayments will also reduce the interest and the length of your loan term. Lump sums you get from work bonus or at tax time can make a difference but so too will putting an extra $50 each month onto your home loan.
You could be up for the following fees depending on your loan choice:
Application fee. This is a fee payable when you apply for a home loan for the lender to assess and process your application. Some lenders waive this fee if you proceed through to settlement.
Valuation fee. You could be charged a valuation fee by the lender for them to value your property. It is important to understand that their valuation may be different to the price you paid for the property or the price given to you by a real estate agent. The lender will base their loan amount off the valuation done by their valuer.
Settlement fee. This is a nominal charge for a bank or lender representative to attend settlement on your behalf and file paperwork.
Service fee. Some loans will have a monthly or an annual service fee. It is important to review this carefully, a $10 a month fee might not sound like much but over a 25 year home loan this adds up to a cool $3000.
Discharge fee. This is a fee payable at the end of the loan term.
In addition to the fees charged by the lender, you may have to pay state or government fees and charges.
Stamp duty calculator. See here if you’ll need to pay stamp duty on your property purchase.
Check out the table above to find the right low deposit home loan for you.
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Stamp duty calculator
Pros: they offer a range of great fixed and variable rates. Cons: focus needs to be a little more on customers and returning calls, emails more efficiently.
Read full reviewPros: they offer a range of great fixed and variable rates. Cons: focus needs to be a little more on customers and returning calls, emails more efficiently.
I'm shocked and disgusted by the way this bank handles itself. Last year whilst overseas my card was used fraudulently to the tune of 14k all at a venue I was at for a short period of time. I asked them to investigate and send me the dockets which should highlight that the transactions were fraudulent and I was not in the same venue for 19 hours!!!.. which should have been an obvious giveaway something was not right in the first place! After 20 or so calls and emails they admitted they did not access the dockets/receipts and as most of the transactions used a pin it was down to me to pay and that was that, after reading the other reviews on here it seems like they just can't be bothered doing their job properly. I will be chatting to the ombudsman now as I can see I'm not on my own here. Move onto this year, as with most of us COVID has affected us all in some ways, after I put my mortgage on hold for a few months to see how things played out I just called to see what my options were moving forward and wanted to change from interest only to interest and principle which you think would be music to their ears given the current state of the economy and to decrease the interest that has accrued over the past few months but no! By way of background I have 9 months left of a fixed interest only mortgage and was told there is no way of me swapping to principal and interest without paying 11k break fees even though I was willing to keep the mortgage with them and lock in a new 3 or 5 year deal. How short sighted and economically irresponsible they are, they should be trying everything they can to assist long term customers especially with the current COVID financial climate but instead they look to make things harder. Surely someone at a senior level must have the hindsight to see their policies serve nothing but to annoy and drive customers away...? Come July I won't be a customer that's for sure... Shame on you Bankwest & Commbank for letting this happen and hopefully a potential customer reads this and goes with a bank with ethics.
Read full reviewI'm shocked and disgusted by the way this bank handles itself. Last year whilst overseas my card was used fraudulently to the tune of 14k all at a venue I was at for a short period of time. I asked them to investigate and send me the dockets which should highlight that the transactions were fraudulent and I was not in the same venue for 19 hours!!!.. which should have been an obvious giveaway something was not right in the first place! After 20 or so calls and emails they admitted they did not access the dockets/receipts and as most of the transactions used a pin it was down to me to pay and that was that, after reading the other reviews on here it seems like they just can't be bothered doing their job properly. I will be chatting to the ombudsman now as I can see I'm not on my own here. Move onto this year, as with most of us COVID has affected us all in some ways, after I put my mortgage on hold for a few months to see how things played out I just called to see what my options were moving forward and wanted to change from interest only to interest and principle which you think would be music to their ears given the current state of the economy and to decrease the interest that has accrued over the past few months but no! By way of background I have 9 months left of a fixed interest only mortgage and was told there is no way of me swapping to principal and interest without paying 11k break fees even though I was willing to keep the mortgage with them and lock in a new 3 or 5 year deal. How short sighted and economically irresponsible they are, they should be trying everything they can to assist long term customers especially with the current COVID financial climate but instead they look to make things harder. Surely someone at a senior level must have the hindsight to see their policies serve nothing but to annoy and drive customers away...? Come July I won't be a customer that's for sure... Shame on you Bankwest & Commbank for letting this happen and hopefully a potential customer reads this and goes with a bank with ethics.
I like this bank because everybody is treated the same, there are no discounts for "better" customers, the ethos from the non profit credit union it emerged from still rings true. There is only one bricks and mortar branch but they do everything they can to ensure that you don't need to go into it. All banking can be done online or by phone and they will accomodate these needs with excellent service representatives.
Read full reviewI like this bank because everybody is treated the same, there are no discounts for "better" customers, the ethos from the non profit credit union it emerged from still rings true. There is only one bricks and mortar branch but they do everything they can to ensure that you don't need to go into it. All banking can be done online or by phone and they will accomodate these needs with excellent service representatives.
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