Low Deposit & No Deposit Home Loans

Low Deposit Home Loans

Low deposit home loans are known as high loan to value ratio. Anything more than 80% loan to value is considered high risk to the lender.

You may still qualify for a home loan even if you have a:

  • 5% deposit
  • 10% deposit
  • 15% deposit

To protect against the risk of default the bank will request the borrower to pay for lenders mortgage insurance. This cost can be either paid up front or capitalised (added) on to the loan.

No Deposit Home Loans

Option 1: Borrow 105% through guarantor

  • You can borrow 105% of the purchase price.
  • You don’t need any savings.
  • Your parents must provide a guarantee, secured on their property.

Option 2: A gift

  • Approximately 60% of first home buyers receive help from their parents.
  • Can your parents gift you 5% to 15% of the purchase price?
  • Some lenders can consider your loan even if you didn’t save the deposit yourself.

Option 3: Personal loan as a deposit

  • Do you have a small 5% deposit?
  • Do you have a very high income?
  • You can borrow up to 95% of the purchase price plus a personal loan.
  • < $10,000 in existing debt.
  • You must have a clear credit history.

Option 4: Using equity from another property

  • Do you already own a property?
  • You can use your existing equity as a deposit
  • If you have sufficient equity then you don’t need any savings at all
  • We can provide a complimentary assessment in property valuation

Option 5: Purchase via your superannuation

  • Do you have over $150,000 in superannuation?
  • You can set up a self-managed superannuation fund (SMSF) to buy a property.
  • The property must be for investment purposes, not to occupy.
  • You can borrow up to 80% of the purchase price.

With this method, you do not need to have any savings yourself because your superannuation will act as a deposit.

Independent advice will be required from your financial planner, accountant and lender prior to applying for a self-managed superannuation fund loan (SMSF loan). 

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