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 the best 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 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.
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.
Page last updated December 11, 2018
Owner Occupier, Principal & Interest
3.59% p.a. variable
3.61% p.a.
Discounted rate for the life of the loan. A relationship manager to help you through the application process. Start with a 10% minimum deposit.
$0.00
$300.00
yes - free
yes - free online
no
3.59% p.a. variable
3.61% p.a.
$150
90.00%
$50,000
$7,500,000
Variable
Principal & Interest
Owner Occupier
Weekly, Fortnightly, Monthly
Details Close
LVR 90-95%, Owner Occupier, Principal & Interest
4.08% p.a. variable
4.09% p.a.
Borrow up to 95% of the property value. Free 100% offset account. No ongoing fees.
$0.00
$300.00
yes - free
yes - free
yes
4.08% p.a. variable
4.09% p.a.
$0
95.00%
$100,000
$2,000,000
Variable
Principal & Interest
Owner Occupier
Weekly, Fortnightly, Monthly
Details Close
Owner Occupier, LVR<90%, 300k+
3.87% p.a.
fixed 3 years
4.02% p.a.
Receive 20,000 Velocity Points for every $100,000 drawn at settlement. Access a 100% offset account to save on interest. Start with a 10% minimum deposit.
$10.00 monthly
$320.00
yes - up to $10,000 per annum
no
yes - 1 year fixed term only
3.87% p.a.
fixed 3 years
4.02% p.a.
$150
90.00%
$300,000
-
Fixed
Principal & Interest
Owner Occupier
Weekly, Fortnightly, Monthly
Details Close
Owner Occupier, Principal & Interest
3.89% p.a. variable
4.29% p.a.
Experts Choice - Australia's Best Customer-Owned Banking & Home Lender of the Year 2018. Only a minimum 10% deposit.
$395.00 yearly
$0.00
yes - free
yes - free
yes
3.89% p.a. variable
4.29% p.a.
$0
90.00%
$150,000
-
Variable
Principal & Interest
Owner Occupier
Weekly, Fortnightly, Monthly
Details Close
Owner Occupier, Principal & Interest
3.87% p.a. variable
3.91% p.a.
Low ongoing rate. Free extra repayments and redraw facility. Only 5% deposit and no annual or monthly fees.
$0.00
$350.00
yes - free
yes
no
3.87% p.a. variable
3.91% p.a.
$600
95.00%
$20,000
-
Variable
Principal & Interest
Owner Occupier
Weekly, Fortnightly, Monthly
Details Close
Owner Occupier, Principal & Interest
3.69% p.a. variable
4.08% p.a.
Only 10% minimum deposit. Benefit from 100% loan offset. Redraw any extra funds whenever you like, with no withdrawal fees!
$349.00 yearly
$100.00
yes - free
yes
yes
3.69% p.a. variable
4.08% p.a.
$295
90.00%
$750,000
$2,000,000
Variable
Principal & Interest
Owner Occupier
Weekly, Fortnightly, Monthly
Details Close
Owner Occupier, Principal & Interest
3.84% p.a.
fixed 3 years
4.67% p.a.
Experts Choice - Home Lender of the Year 2018. Only 5% minimum deposit.
$395.00 yearly
$0.00
yes - free up to $25,000 p.a.
yes - free
no
3.84% p.a.
fixed 3 years
4.67% p.a.
$0
95.00%
$5,000
-
Fixed
Principal & Interest
Owner Occupier
Weekly, Fortnightly, Monthly
Details Close
Owner Occupier, Principal & Interest
4.39% p.a. variable
4.78% p.a.
$0 application fee & Free extra repayments. Borrow up to 95% of the property value.
$395.00 yearly
$350.00
yes - free
yes - free
yes
4.39% p.a. variable
4.78% p.a.
$0
95.00%
$250,000
$749,999
Variable
Principal & Interest
Owner Occupier
Weekly, Fortnightly, Monthly
Details Close
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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%.
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.
I love NAB. It is the best bank ever.
Read full review
I love NAB. It is the best bank ever.
Less
Jihee | Western Australia
reviewed about 12 hours ago
Great rates!
Read full review
Great rates!
Less
Alexandra | New South Wales
reviewed about 13 hours ago
Not at all happy with NAB as we had to sell our investment property, due to lack of work for a...
Read full review
Not at all happy with NAB as we had to sell our investment property, due to lack of work for a couple of months and not being able to keep up with the repayments, even though we had always paid 10-20 percent above the necessary amount. They did not give us long at all before they took the situation to court.
Less
Colleen | Queensland
reviewed 8 days ago
