Acquiring a Property with a 10% Deposit: No Need for a 20% Savings! 

Contrary to common belief, you don’t have to save a hefty 20% deposit to make your property ownership dream a reality. Many banks and lenders are willing to approve a 10% deposit home loan, provided you meet the standard borrowing requirements.

Eligibility for a 10% Deposit Home Loan 

Wondering if you qualify for a 10% deposit home loan? Consider the following criteria: 

• Stable Job History: Demonstrating six months in your current job or two years in the same line of work signals to the bank that you can manage repayments. (Note: Not all lenders require this work history.) 
• Positive Credit File: Some lenders accept minor paid utility defaults and other minor missed payments if your overall application is robust. 
• Minimal Current Debt: A history of timely payments on bills, rent, and credit cards over six months enhances your eligibility. 
• Strong Income: Meeting the banks’ serviceability ratio, assessing your ability to continue making home loan repayments, is crucial. 
• Genuine Savings: Typically, having 5% of the deposit as genuine savings, accumulated through regular deposits over three months, is a common requirement. However, certain criteria may exempt you from this genuine savings rule. 

Special 1.10% Interest Rate Discount Offer! 

If you meet specific requirements, you may be eligible for a significant 1.10% interest rate discount. This limited-time offer, applicable to all purchases and refinances, requires a history of at least three months in your current role or two years in the same line of work. For loans between $250,000 and $500,000, a 1.00% interest rate discount is available. 

The discount is tied to having at least a 10% deposit and capitalizing Lenders Mortgage Insurance (LMI) onto your mortgage. By doing so, you can pay off this premium as part of your regular mortgage repayments, interest-free, and avoid upfront costs. 

Borrowing Over $1 Million with a 10% Deposit 

Securing a home loan with just a 10% deposit is considered high LVR (Loan to Value Ratio), limiting borrowing to around $1 million. However, exceptions exist, allowing borrowing up to $2 million with certain banks or leveraging existing properties as security.