LOW-DEPOSIT HOME LOANS
Get into the Market with a Small Deposit
You don’t always need a 20% deposit to buy a home. With the right loan and support, first-home buyers and other borrowers can take out a home loan with as little as a 5% (or even 2%) deposit. However, a smaller deposit means added costs and stricter criteria. We’ll explain the options: lenders’ mortgage insurance (LMI) or a low-deposit premium, government guarantee schemes, or family guarantors, and compare the full costs before you decide.
5%
Minimum deposit under the First Home Guarantee
90%
LVR with no LMI for eligible professions
$28.6k
Typical LMI on a $700k purchase at 95% LVR
4
Distinct routes to a low-deposit approval
Who this suits
Reasons to look at a low-deposit loan
A lower deposit can help if you are ready to buy and have not saved 20%. The comparison is the cost of buying now against more years of rent and price movement.
01
A 5% to 10% deposit
LMI or a government guarantee can cover the gap to 20%. We compare the criteria and the cost, including the First Home Guarantee where you qualify.
02
A family guarantee
A parent can pledge equity in their home. With enough security you can borrow a higher share of the price and often avoid LMI.
03
Moving, using sale proceeds
Equity from a sale plus a smaller top-up can fund the next home. We include the expected release, and bridging if the dates do not line up.
04
A government guarantee
Eligible buyers can reach 95% or, for the Family Home Guarantee, 98% of value without LMI. Timing and eligibility are checked before you rely on the scheme.
Why work with us
Low-deposit loans, checked before you apply
A smaller deposit adds cost and tighter criteria. We put income, debts and the deposit source next to the contract, then say which path fits.
01
The whole position
Income, debts and the deposit are reviewed before an application starts, including fees and any rate that is locked in.
02
About 40 lenders
Banks, credit unions and specialist funders. A high-LVR loan is matched to lenders whose policy will consider it.
03
The cost is in the comparison
If LMI applies, the premium is added to the loan so the repayments are compared on the same basis.
04
One broker on the file
Milo collects the documents, handles lender questions and stays through to settlement. Nothing is lodged until you agree.
Our process
From the first conversation to settlement
01
Day 0
Tell us the situation
First home, upgrade or refinance, plus income and a rough deposit. No commitment, and no application.
Credit impact — none
02
Days 1–5
Gather the file
Statements, payslips or returns, existing loans, and a contract or valuation if you have one. Gaps, including short savings, are flagged here.
Credit impact — soft enquiry only
03
Days 5–7
Compare lenders
LVR, LMI or a lender fee, rate and features. The shortlist may be your current loan, an LMI loan, a guarantor loan or a scheme loan.
Credit impact — enquiry recorded
04
Weeks 3–6
Apply when you agree
We lodge only after you choose. Valuation and approval sit with the lender. Settlement follows the contract.
Credit impact — account reported
See exactly where your LVR lands
The LVR calculator shows the deposit needed to clear 80%, and borrowing power applies the same buffer a lender will.
Open the calculatorsCommon questions
Low deposit questions
If yours is not here, ask it directly — you will get a straight answer, not a callback form.
Ask a broker →It depends on price movement against your savings rate. If your target market is rising five per cent a year, another two years of saving costs more in purchase price than the premium would have. If prices are flat, waiting wins. We model both with real numbers rather than assuming.
Generally funds accumulated in your own account over at least three months. Rent paid on time can count with some lenders, and gifts can qualify if held long enough or supported by a statutory declaration. A handful of lenders have no genuine savings requirement at all, which occasionally decides the whole application.
Yes — that is precisely what a family guarantee does. They offer a limited amount of equity in their property as additional security without becoming an owner or a borrower, and the guarantee is released once your loan reaches 80% of value.
Typically medical practitioners, dentists, veterinarians, lawyers, accountants and some finance professionals, though the list differs by lender and is occasionally extended. Eligibility usually requires membership of a professional body and a minimum income. It is always worth asking.
No, and this is widely misunderstood. Lenders mortgage insurance protects the lender against loss on default. You pay the premium, the lender holds the benefit, and if the property sells for less than the debt the insurer can still pursue you for the shortfall.
Related services
Often looked at alongside this
Supporting paragraph for this section.
Get started
Check the deposit path before you offer
Tell us the price range, what you have saved and whether a family member can help. We will say whether LMI, a guarantee scheme or a guarantor is the lower-cost path.
Four routes priced
Scheme, guarantee, waiver and LMI, side by side.
Insurer policy checked
Postcode and property type, before you offer.
No credit enquiry
Nothing recorded until you instruct us.