LOW DEPOSIT HOME LOANS

Get Home Sooner,
With Less

Own your home with as little as a 2% deposit. Take advantage of flexible options and government-backed schemes to expedite your homeownership journey.

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Key Features

Low Deposit, Big Possibilities

1. Low Deposit Requirement

You can secure a home loan with as little as 2% of the property value as your deposit, making it easier to enter the property market sooner.
2. Lenders Mortgage Insurance (LMI)

Because of the smaller deposit, you’ll generally need to pay for Lenders Mortgage Insurance (LMI), which protects the lender if you default, though it’s an additional cost you must bear.
3. No Penalty Interest Rates

Even with a smaller deposit, you won’t be penalized with higher interest rates; you can enjoy the same competitive rates as those with larger deposits.
4. Government Schemes for First-Time Buyers

You may be eligible for government-backed schemes such as the Home Guarantee Scheme, which helps reduce the financial burden by eliminating the need for LMI with deposits as low as 2%.

Low Deposit? No Problem!

See how you can secure a home loan with savings as low as 2% of the property value. Our calculator helps you understand your eligibility and available loan options on a real-time basis.

LOW DEPOSIT HOME LOAN SCHEMES

Government Support for Low-Deposit Buyers

The Australian government offers schemes to help eligible buyers enter the property market sooner, allowing them to secure a mortgage with as little as a 2% deposit while avoiding Lenders Mortgage Insurance (LMI).

First Home Guarantee

This scheme allows eligible first-home buyers to purchase a property with a low deposit while bypassing LMI, making home ownership more affordable.

Family Home Guarantee

Designed for single parents, this scheme enables eligible borrowers to buy a home with just a 2% deposit while avoiding LMI, providing financial relief.

LOW DEPOSIT ALTERNATIVES TO NO DEPOSIT LOANS

Didn’t Qualify? Explore Low-Deposit Loans

Good income

Loan purpose

Acceptable property

Clean credit

Genuine savings

Asset position

Stable job

Low debt

Why Choose US

Your Trusted Home Loan Partner

At Everrich Finance, we understand challenges that come with getting a home loan when you have a low deposit as savings.

Professional Guidance

Our experienced advisors specialise in complex financial cases with low upfront savings or a deposit, including those turned away by banks, ensuring you get the right loan solution.

Personalised Support

From application to settlement, our brokers provide tailored advice and hands-on guidance, making your home loan journey a well supported one from start to finish.

Competitive Rates

We negotiate sharp interest rates on your behalf, helping you secure the suitable home loan tailored to your needs.

More Options

With access to over 30 lenders, we compare multiple loan products to find the perfect fit—whether you're in Australia or overseas.

We compare loans from a wide range of lenders

CORE ESSENTIALS

Low Deposit Home Loans Explained

So that you can get into your home sooner, the banks offer a low deposit home loan option. You can purchase a home with a deposit as low as 2% of the property value.

A. How does low-deposit home loans work?

Since borrowers provide a lower deposit, applicants will generally have a higher loan to value ratio. This generally means that the bank will generally need to buy mortgage insurance to cover for the additional risk. The lender mortgage insurance protects the lender in case the borrower defaults on the loan. This cost is generally passed onto the borrowers and not for borrower’s protection.

If you are approved for a low deposit home loan the mortgage insurance is waived. Once you’re approved for a low-deposit home loan, your rates are the same interest rates as someone who has a 20% deposit. This means even though you have a smaller deposit, you won’t be penalised with a higher interest rate.

Details	Low-Deposit Home Loan	Traditional Home Loan
Required Deposit	5%	20%
Lenders Mortgage Insurance (LMI)	Yes	No
Time To Homeownership	Sooner access to the property market	Longer savings period required

B. How much deposit do I need?

You might need at least 5% of the property value, which is the minimum that most lenders accept.

We have lenders on our panel that allow you to borrow over 90% of the property value. So, you can qualify for a home loan even if you have a:

C. Government help for low-deposit borrowers

There are several federal government schemes and grants that can help you buy your home sooner.

The Home Guarantee Scheme is when the government guarantees loans so eligible home buyers avoid paying Lenders Mortgage Insurance, even with a deposit as low as 2% of the property value. There are three different schemes as part of the Home Guarantee Scheme: If you can save at least 5% of the property value as a deposit, low-deposit home loan options are available. These options range from government schemes to gifted deposits and personal loans.

Simply give us a call on Contact us: (03) 9034 5223 or enquire online for free and we’ll let you know if you qualify.

D. How can I qualify?

Most banks have quite strict borrowing criteria for borrowers with small deposits but, generally speaking. Banks will generally consider your application if you:

Have good income: so that you can demonstrate hat you can afford the repayments on the proposed loan.
Loan purpose: Purchase, refinance or build an owner occupied or investment property, such as debt consolidation.
Property: Security of the property must be acceptable to the bank.
Clean credit file: There should be no adverse listed on your credit file like late payments on personal loans, credit cards or rent.
Genuine savings usually required: You will need to show minimum 5% deposit and saving over 3 months to demonstrate history for your saving.
Reasonable asset position: Your age and income should reflect a relatively high level of assets such as you owning a car, jewelry, having savings, and so on.
Reliable, long term job: If you are PAYG banks generally like to see that consistency in work for 6 months in your current role or two years in the same line of work. If you are self employed the bank will generally want to see 2 years income to confirm that your income is sustainable.
Low level of debt: Although you’ll need a good credit file, the general rule for borrowing at a high LVR is ensuring that any unsecured loans like personal loan, credit card, doesn’t exceed more than 5% of the purchase price of the property.

Showing a history of perfect repayments on these debts can work in your favor.

E. Choosing the right bank

The lender you choose can make or break your application but it can also mean the difference between you getting a great deal or just going with what the bank offers you as a low deposit borrower.

There can be big differences in what banks offer you, in terms of rates, discounts, terms and mortgage insurance waiver.

Our mortgage brokers with years of experience in credit applications, have strong relationships with a number of lenders, can give you the negotiating power you need to get the most suitable loan for you.

F. Apply for a low deposit loan

Simply give us a call on (03) 9034 5223 or enquire online for free and we’ll let you know if you qualify.

LOW DEPOSIT LOAN FAQ

Low Deposit Home Loans: Your Questions Answered

1. What do you mean by Genuine savings?

Genuine savings is a requirement that most financiers. In most cases, you’ll need to have more than 5% of the property value to qualify for a mortgage and it must be in the following forms:
• Regular deposits into a savings account over a 3 month period.
• Term deposits held for 3 months.
• Shares or managed funds held for 3 months.
• Some lenders will accept equity in another property.
• In some cases, you can use rent as genuine savings.
Despite this, it really depends on how big your deposit is. As a rough guide:
• 15-19% deposit: Genuine savings isn’t required by most lenders.
• 10-15% deposit: Most lenders require genuine savings.
• 3-5% deposit: Almost all lenders require genuine savings.
2. What is a 3% deposit home loan?

A 3% or 97% home loan allows you to borrow up to 95% of the property value plus the cost of Lenders Mortgage Insurance. This is the fee for borrowing more than 80% of the property value.
3. Is it mandatory to get mortgage insurance?

Mortgage insurance generally works out to be around 2% to 3% of the total property value.
By adding this to your loan, you can actually avoid paying thousands of dollars in upfront fees.
4. Are there options for no-deposit home loans?

Yes, if your parent’s own property in Australia, then you can use their property as security. With a guarantor home loan:
• You don’t need any savings
• You can borrow 100% plus stamp duty and or other costs associated with buying a home.
• You can save thousands of dollars in mortgage insurance fees.
5. Should I save a bigger deposit?

Borrowers should consider the trend of the market. Whilst saving 20% can save you on the cost of mortgage insurance. If the growth of the property market is really strong the attempt to save enough to avoid the mortgage insurance fees may be eroded. In a stagnant or downward trending market it is ok to save and wait.
Consider all options and speak to one of our advisors so we can provide recommendations based on your circumstances.
6. Do all banks have the same mortgage insurance fees?

When comparing mortgages the easiest thing to compare is the rates. Most borrowers will not consider the cost of mortgages insurance.
Our expert advisers can look at your situation and compare lenders with the cheapest mortgage insurance cost and make suggestions around milestones to get the mortgage insurance cost down as low as possible.
7. Can I get the same features with a low deposit home loan?

In most cases, you can get the same features as someone with 20% deposit and 80% loan against their property. So you can get 100% offset facility, multiple offset accounts. fixed interest rates, basic loans and professional packages.
8. How can I work out my loan to value ratio (LVR)?

Loan to value ratio is the amount that you borrow against the property value. For example, if you borrow $800,000 to purchase a property valued at $1,000,000, the loan to value ratio of your home loan would be 80%.
9. What are the benefits and disadvantages of low deposit home loans?

The benefits are:
• You able to buy the property sooner rather than waiting for years to save enough to avoid the mortgage insurance fees.
• You are able to pay towards your own mortgage sooner rather than paying someone else’s mortgage off for them.
• There are many options available and you can choose a solution most suitable to your situation.
• Giving yourself the option to be able to get into the property market at a time that suits you gives you the opportunity to take advantage of the property growth.
• You can still access competitive rates and favorable terms even if you don’t have a big deposit.
The disadvantages are:
• Normally you will have to pay mortgage insurance which cost you thousands of dollars.
• A lower deposit generally means higher risk to the bank and sometimes may mean higher rates and stricter criteria.
• With a smaller deposit, you'll have less equity in your property initially. This could limit your options to refinance your loans until the property value goes up or you pay down the loan to avoid mortgage insurance.
• If the property market experiences a downturn, you may have negative equity if you had to sell as a result of an emergency.
10. Will the rate always be higher?

No, not always. The banks look at the size of your loans, your income to assess your overall risk. So if you only have a 5% deposit but you have a stable job, enjoy a good income and have a good asset position, then this can work in your favour when your team negotiates your loans for you.
11. How can I avoid mortgage insurance fees?

can do.
• You can look at using your parents home as security to secure your mortgage with their property. In most cases, this would allow you to borrow 100% of the purchase plus the costs of completing the purchase.
• If you are an eligible professional like an accountant, solicitor or medical professional you may qualify for mortgage insurance waiver.

Testimonials

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