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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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.
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 a great solution to help first home buyers achieve their home owning dreams faster.
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 a low deposit home loan that looks great 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.
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.
Sorted by:
Mozo order
2.94% p.a. variable
3.34% p.a.
Owner Occupier, Principal & Interest
2.94% p.a. variable
3.34% p.a.
Experts Choice - Australia's Best Customer-Owned Banking 2018. Only a minimum 10% deposit.
2.88% p.a. variable
2.94% p.a.
LVR 80-90%, Owner Occupier, Principal & Interest
2.88% p.a. variable
2.94% p.a.
Start with only 10% minimum deposit. Unrestricted additional repayments and free redraw facility.
2.94% p.a. variable
2.98% p.a.
Owner Occupier, Principal & Interest
2.94% p.a. variable
2.98% p.a.
No ongoing fees. Ability to split your loan between fixed and variable. Winner of Mozo Experts Choice Award 2019 for First Home Buyer Loan & Investor Home Loan.
3.23% p.a. variable
3.29% p.a.
LVR>90%, Owner Occupier, Principal & Interest
3.23% p.a. variable
3.29% p.a.
No monthly fees, unlimited addiitional repayments and free redraws.
3.49% p.a. variable
3.56% p.a.
Owner Occupier, Principal & Interest
3.49% p.a. variable
3.56% p.a.
A Mozo Exclusive rate for loans up to $1.5M. Only a 5% deposit needed. No ongoing fees and optional offset account.
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Low deposit
^See information about the Mozo Experts Choice Home Loans Awards
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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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The ruthless franchise model of RAMS branches is not compatible with customer-focused solutions. Complaints to the escalated team are routinely ignored. Emails to RAMS are ignored. Our dealings with RAMS South East have been nothing short of a shambles. We have observed 4 separate staff members who have departed (as evidenced by automatic email replies advising of their departure) which makes communication all the more difficult. We were assured in writing when we applied for the loan that after 3 consecutive years of clear repayment history, we would revert to full doc and obtain an interest rate reduction of 1% less (we are currently obtaining an exploitative rate of 4.26%). However we understand based on a conversation with customer service that RAMS has reneged on this policy. I understand RAMS will soon be rebranded as Westpac. The sooner that happens, the better.
Read full reviewThe ruthless franchise model of RAMS branches is not compatible with customer-focused solutions. Complaints to the escalated team are routinely ignored. Emails to RAMS are ignored. Our dealings with RAMS South East have been nothing short of a shambles. We have observed 4 separate staff members who have departed (as evidenced by automatic email replies advising of their departure) which makes communication all the more difficult. We were assured in writing when we applied for the loan that after 3 consecutive years of clear repayment history, we would revert to full doc and obtain an interest rate reduction of 1% less (we are currently obtaining an exploitative rate of 4.26%). However we understand based on a conversation with customer service that RAMS has reneged on this policy. I understand RAMS will soon be rebranded as Westpac. The sooner that happens, the better.
I have been with Westpac home loan for 10 years. They are great.
Read full reviewI have been with Westpac home loan for 10 years. They are great.
Aussie has been fabulous to deal with both pre and post buying a home. I highly recommend them!
Read full reviewAussie has been fabulous to deal with both pre and post buying a home. I highly recommend them!
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