Compare low deposit home loans for November

A low deposit home loan usually means having a deposit of 10% or less of the property's value. Compare low deposit home loan options from a range of lenders from online to well-known bank brands below.

Fact Checked
Woman excited about low deposit home loans
Mozo may receive payment if you click products on our site. We don’t compare the entire market, but you can search our database of 455 home loans using the filters.
Last updated 10 November 2024 Important disclosures and comparison rate warning*

Home loan comparisons on Mozo

  • Fixed Express Home Loan

    • Owner Occupier
    • Principal & Interest
    Interest rate
    5.54 % p.a.
    Fixed 2 years
    Comparison rate
    6.11 % p.a.
    Initial monthly repayment
    $4,106
    Go to site

    Lock in a low 2 year fixed rate with the Mozo award winning Home Lender of the Year. Available for live-in borrowers with just a 10% deposit required. Free extra repayments (up to 20% in fixed period), free redraw and partial offset available. $10 monthly service fee. Aussie support centre. Fast approvals. Up to 6 free offset accounts (T&Cs apply).

  • Fixed Express Home Loan

    • Owner Occupier
    • Principal & Interest
    Interest rate
    5.54 % p.a.
    Fixed 2 years
    Comparison rate
    6.11 % p.a.
    Initial monthly repayment
    $4,106
    Go to site

    Lock in a low 2 year fixed rate with the Mozo award winning Home Lender of the Year. Available for live-in borrowers with just a 10% deposit required. Free extra repayments (up to 20% in fixed period), free redraw and partial offset available. $10 monthly service fee. Aussie support centre. Fast approvals. Up to 6 free offset accounts (T&Cs apply).

  • Fixed Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <95%
    Interest rate
    5.69 % p.a.
    Fixed 3 years
    Comparison rate
    6.28 % p.a.
    Initial monthly repayment
    $4,174
    Go to site

    Get the security of a competitive fixed rate home loan for 2 years with IMB. Get up to $4,000 cashback (T&Cs apply). Up to 12 months repayments in advance without penalties. Free Internet and Mobile Banking redraws (T&Cs apply). Up to a 30 year loan term. Split loan available. No offset account.

  • Fixed Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <95%
    Interest rate
    5.69 % p.a.
    Fixed 3 years
    Comparison rate
    6.28 % p.a.
    Initial monthly repayment
    $4,174
    Go to site

    Get the security of a competitive fixed rate home loan for 2 years with IMB. Get up to $4,000 cashback (T&Cs apply). Up to 12 months repayments in advance without penalties. Free Internet and Mobile Banking redraws (T&Cs apply). Up to a 30 year loan term. Split loan available. No offset account.

  • Fixed Rate Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <90%
    Interest rate
    5.89 % p.a.
    Fixed 5 years
    Comparison rate
    6.62 % p.a.
    Initial monthly repayment
    $4,266

  • Express Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <90%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.22 % p.a.
    Initial monthly repayment
    $4,359
    Go to site

    Get online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.

  • Discounted Home Value Loan

    • Owner Occupier
    • Principal & Interest
    • LVR 80-90%
    Interest rate
    6.39 % p.a.
    Variable
    Comparison rate
    6.39 % p.a.
    Initial monthly repayment
    $4,499

    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).

image of houses

Need help with your Home Loan?

Whether you're looking to purchase a new home or refinance your existing loan, our friends at Lendi can help! Lendi’s expert advice is completely free of charge. Book an appointment and enter the draw to win $30K.

Learn more

Interest rates change regularly - stay informed.

Compare more home loan options

Home loans come in many shapes and sizes, start comparing here based on your needs. 

Search the Mozo Database

Browse all home loans in Mozo's comparison database

Low Deposits Knowledge Hub

What is a low deposit home loan?

The standard for home loan deposits in Australia is 20% of the property’s purchase value, but for those struggling to save for their first deposit, it’s possible to opt for a low deposit home loan.

With a low deposit home loan you only pay around 5-10% of the property’s value, instead of the typical 20% deposit.

Low deposit home loans have some drawbacks, including higher interest rates, stricter lending criteria and the added expense of lenders mortgage insurance (LMI) in some cases.

The upside of a low deposit home loan is that it gets you on the property ladder sooner, which may be particularly helpful for first home buyers, or anyone looking to get ahead of potentially rising property prices.

Understand loan-to-value ratio

A low deposit home loan means you’ll have a high loan-to-value ratio (LVR). Your LVR refers to the amount of money you need to borrow in proportion to the property’s value.

Lenders typically want you to have a home deposit of at least 20%, which gives you a loan-to-value ratio of 80%. If your LVR is more than 80%, it’s likely you’ll be deemed a riskier borrower and may need to pay a higher interest rate.

This is important to keep in mind with low deposit home loans – if you’re taking out a mortgage with an LVR of more than 80%, you might pay more interest in the long run. You may also need to pay lenders mortgage insurance.

Will I have to pay lenders mortgage insurance?

Low deposit home loans of under 20% generally require you to pay lenders mortgage insurance.

It’s a type of insurance that protects the lender if you’re no longer able to meet your home loan repayments, but it’s a cost the lender passes on to you.

The cost of LMI will depend on the amount you’re borrowing and your LVR.

There are ways to avoid paying lenders mortgage insurance, such as government home loan grants that can waive the cost of LMI you’d typically have to pay, even if you have a deposit as small as 5%.

Other ways to avoid paying lenders mortgage insurance include asking a family member about going guarantor on your home loan or using a substantial cash gift.

Lenders mortgage insurance can be paid in a one-off instalment, but it’s often lumped into the overall cost of your home loan so you pay it off over time. While this spreads out the cost over time, it means it will also accrue interest.

LMI doesn’t protect you if you can’t meet your mortgage repayments, so you would need to take out income protection or mortgage protection insurance to cover you in case of illness. injury or redundancy.

Government support for low deposit home loans

A low deposit home loan can be a helpful way of getting into the property market, but higher interest rates and LMI are added expenses that can be a deterrent.

However, if you’re a first home buyer in Australia, you may be eligible for First Home Owner Grants (FHOGs) or other first home buyer schemes.

With the First Home Guarantee, for example, the Australian government acts as your guarantor. This means the government provides additional security by adding to your home loan deposit.

Keep in mind that the government’s home loan schemes are kept to participating lenders, so you’ll need to check that your mortgage provider is participating. Income limits also apply and not everybody is eligible.

Pros of low deposit home loans

If you’re looking to get into the property market now, whether as an investor or first time home buyer, here are some advantages to getting a low deposit home loan:

  • Less time saving for a deposit: Low deposit home loans can make homeownership accessible if you’ve been unable to save a 20% deposit. It’s particularly beneficial for first-time home buyers who may struggle to save while also paying rent.
  • Get on the property ladder sooner: A low deposit home loan has the potential to get you into your home faster than you may have otherwise if you’d saved for the full 20% deposit. It may also help you avoid rising house prices.
  • Hold more money back: With a lower initial deposit, you may be able to maintain a substantial emergency fund. If you add your savings to an offset account, it could significantly lower your interest.
  • Government schemes: If you’re a first home buyer, chances are you may be able to get your low deposit loan backed by the government, which usually means an exemption from paying lenders mortgage insurance.

Cons of low deposit home loans

While a low deposit home loan can be useful for borrowers looking to get on the property ladder early, there are some drawbacks that you should consider:

  • Lower home equity: A smaller deposit means you’ll start with lower home equity. Low equity means a larger loan and higher repayments. You could also slide into negative equity, which could be a problem if you run into trouble and need to sell.
  • Higher interest rates: Lenders see low deposit home loans as more risky, so a small deposit generally means you’ll be met with a higher interest rate than if you had a deposit of at least 20%.
  • Lenders mortgage insurance: If your deposit is less than 20% of the property’s value, you will usually be required to pay lenders mortgage insurance. It’s a fee that protects the lender, not you (the borrower), if you can’t repay the loan.

How can I calculate my home loan repayments?

You can estimate your repayments with Mozo’s free home loan repayments calculator.

Just plug in your loan amount and term and our calculator will instantly tell you what your monthly repayments will be so that you can begin budgeting.

Applying for a low deposit home loan

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:

  • Identification (driver’s licence, passport)
  • Proof of income
  • Liabilities (such as debts)
  • Credit score

It’s a good idea to 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.

FAQs: low deposit home loans

Can I get a home loan with a 5% deposit?

Yes, there are various lenders that will allow you to take out a home loan with a deposit as low as 5% (which gives you a 95% loan-to-value ratio).

According to the Mozo database, borrowers with a low deposit will be able to pick between a variety of big banks, credit unions and online lenders, though the interest rates on offer vary greatly.

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

Low deposit home loans usually come with the same features as standard home loans, but they tend to have higher interest rates and stricter lending criteria.

What fees do I need to pay on a low deposit home loan?

Low deposit home loans can come with the standard fees you’d pay for with a typical home loan, including application, property valuation, settlement and service fees.

You may also need to pay lenders mortgage insurance (LMI), unless you’re eligible to buy through a government home loan grant.

JP Pelosi
JP Pelosi
RG146
Managing editor

Managing Editor Jean-Paul (JP) Pelosi leads the editorial team, with over 20 years of experience writing for top outlets like The Guardian, The Sydney Morning Herald and News.com.au. JP's expertise in home loans and property is complemented by his rich background at major financial firms including CommBank, Suncorp and Amex. Holding a Master's in Communications and international experience in journalism, JP combines passion with skill and has a unique ability to apply this editorial experience and financial knowledge to advise the team on how to create engaging financial content for Australian consumers.

Jack Dona
Jack Dona
RG146
Money writer

Jack is RG146 Generic Knowledge certified, with a Bachelor of Communications in Creative Writing from UTS, and uses his creative flair to cut through the financial jargon and make home loans, insurance and banking interesting. His reader-first approach to creating content and his passion for financial literacy means he always looks for innovative ways to explain personal finance. Jack's research and explanations have been featured in government publications, and his work is regularly featured alongside major publications in Google's Top Stories for Insurance.

Brands we compare

We compare home loans from the following well-known lenders and many more... SEE MORE HOME LOAN LENDERS

Home loan customer reviews

Bendigo Bank Complete Home Loan Variable
Overall 6/10
Bank mishaps

When my husband sold his business he got a large cash transfer and Bendigo bank couldn’t track the money The man said we should wait 24hours We were like we are not leaving till you find out where in your system it is They found it within the hour Also they have a lot of online banking outages which can be frustrating when you are shopping We are actually going to open another account with another bank and put some money in for when they go down

Read full review

When my husband sold his business he got a large cash transfer and Bendigo bank couldn’t track the money The man said we should wait 24hours We were like we are not leaving till you find out where in your system it is They found it within the hour Also they have a lot of online banking outages which can be frustrating when you are shopping We are actually going to open another account with another bank and put some money in for when they go down

Price
8/10
Features
6/10
Customer service
4/10
Convenience
3/10
Trust
5/10
Less
Kate, Victoria, reviewed 12 days ago
Adelaide Bank Home Loan
Overall 7/10
Boost your Qantas rewards points!

Great for Qantas points, you get 100,000 Qantas points on the anniversary of your home loan. The interest rates are also very good too and competitive.

Read full review

Great for Qantas points, you get 100,000 Qantas points on the anniversary of your home loan. The interest rates are also very good too and competitive.

Price
8/10
Features
7/10
Customer service
8/10
Convenience
10/10
Trust
9/10
Less
Alfred, Queensland, reviewed 12 days ago
MyState Bank Standard Variable Home Loan
Overall 10/10
Good service and local branches

Easy to deal with Local branches Supportive service

Read full review

Easy to deal with Local branches Supportive service

Price
10/10
Features
10/10
Customer service
10/10
Convenience
10/10
Trust
10/10
Less
Shelley, Tasmania, reviewed 12 days ago

More home loan reviews