Achieving homeownership sooner than you thought possible is within your reach with low-deposit home loans, enabling you to buy a home with a deposit as minimal as 2% of the property value. Let’s explore the pathway to acquiring your property faster through these loans. 

Understanding the Mechanism of Low-Deposit Loans 

With low-deposit loans, borrowers contribute a smaller deposit, resulting in a higher Loan-To-Value Ratio (LVR). This might lead to the requirement of Lenders Mortgage Insurance (LMI), safeguarding lenders in case of borrower default. Upon approval, enjoy comparable interest rates to those with a 20% deposit, eliminating the penalty of higher interest rates despite having a smaller deposit. 

How Much Deposit Do You Need? 

Typically, you may need at least 5% of the property value, which is generally accepted by most lenders. Some lenders on our panel even allow borrowing over 90% of the property value, making it possible with deposits as low as 3%, 5%, 10%, or 15%. 

Government Assistance for Low-Deposit Borrowers 

In addition to lender offerings, various federal government schemes and grants expedite your journey to homeownership. The Home Guarantee Scheme, featuring three schemes, and the Help to Buy Scheme are among the avenues to explore. 

Qualifying for a Low-Deposit Loan 

Meeting stringent criteria is essential for approval, but with a good income, clear loan purpose, suitable property, clean credit file, genuine savings, reasonable asset position, stable job, and low debt, your chances increase. Larger deposits enhance negotiation leverage and expand lender options.