Low Deposit Home Loans

If you're looking for a way into the housing market, a low deposit home loan could be your ticket to home ownership. Compare home loans that only require a 10 percent deposit or less in the table below.


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Are there low deposit home loans for first home buyers?

Saving up enough money for a first home deposit requires a lot of commitment, but that doesn’t mean it’s impossible. That’s why a low deposit home loan which requires a deposit of just 10 per cent or less could be the best solution to help first home buyers achieve their home owning dreams faster.

Can I apply for a low deposit home loan online?

You sure can. Whether you’re looking for a low deposit home loan in QLD, SA, WA or VIC, NSW the NT or Tasmania, applying online is a piece of cake. Once you’ve picked the low deposit home loan that looks best to you, simply hit the blue Go to site button or green Enquire now button on the right hand side and you’ll be directed to the lender. 

What is lenders mortgage insurance (LMI)?

Lenders mortgage insurance (LMI) is an upfront cost you’ll generally be required to pay if you choose to take out a home loan with less than a 20% deposit. It’s a trade off for buyers meaning you can put down a lower deposit while lenders have insurance against loans which are often considered riskier. The cost of this insurance is usually added to your home loan and paid back over time with your home loan repayments.

Low deposit home loan comparisons on Mozo - rates updated daily

*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, loan amount and term entered. 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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Low deposit home loans

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.

Will I have to pay lenders mortgage insurance?

How can I work out what my repayments will be?

Do low deposit home loans have the same features as standard home loans?

What fees do I need to pay?

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Home Loan Reviews

Bankwest
Bankwest Complete Variable Home Loan (LVR<=90%, Owner Occupier, Principal & Interest) (Package) home loan review
Overall
9/10
Very competitive and great service.

Bankwest's rates are very competitive and they have great service.

Bankwest's rates are very competitive and they have great service.

Price
9/10
Features
9/10
Customer service
9/10
Convenience
5/10
Trust
9/10

Reinhard | Tasmania

reviewed 4 days ago

ME
ME Flexible Fixed Home Loan (Fixed, Owner Occupier, LVR<95%, Principal & Interest) (Member Package) home loan review
Overall
6/10
I’m looking around

Probably not the best rate.

Probably not the best rate.

Price
6/10
Features
5/10
Customer service
5/10
Convenience
6/10
Trust
6/10

Dario | Queensland

reviewed 4 days ago

Bendigo Bank
Bendigo Bank Variable Rate Residential (Owner Occupier, Principal & Interest) home loan review
Overall
4/10
No benefits for customer loyalty

Due to the age of my husband we are trapped with this mortgage. They have increased the monthly...

Due to the age of my husband we are trapped with this mortgage. They have increased the monthly fee to $20 - up from $10. We had to take out car insurance with them to get a discount rate but still not the cheapest in the market.

Price
2/10
Features
2/10
Customer service
6/10
Convenience
5/10
Trust
4/10

Tracey | Queensland

reviewed 4 days ago

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