10% Deposit Home Loans: What You Need to Know

You don’t necessarily need to save a 20% deposit to buy a property!

Many banks and lenders are actually happy to approve a 10% deposit home loan as long as you meet all standard borrowing requirements.

We’re low deposit home loan specialists that know exactly how to build a strong case with these lenders.

Quick Facts About 10% Deposit Home Loans

• Minimum 5% must be in genuine savings for most lenders

• Lenders Mortgage Insurance (LMI) usually required but may be waived

• Interest rate discounts available for eligible borrowers

• Loans available up to $1–2 million in special cases

• Non-genuine savings may be accepted by select lenders

Am I Eligible for a 10% Deposit Home Loan?

To qualify, lenders typically want to see:

• Stable employment: At least 3 months in your current role or 2 years in the same industry.

• Good credit history: Minor defaults may be acceptable if rest of the application is strong.

• Low debts: A clear repayment record on current debts strengthens your application.

• Sufficient income: Must meet serviceability criteria to show you can afford the loan.

• Genuine savings: Usually 5% of the deposit saved over 3 months (exceptions apply).

What About Lenders Mortgage Insurance (LMI)?

LMI protects the lender, not you. It’s typically required on loans with less than a 20% deposit but there are ways to avoid it:

LMI Waiver for Select Professionals

Some lenders waive LMI for certain high-demand professionals, such as:

• Doctors, dentists, pharmacists, optometrists, veterinarians
• Accountants, lawyers, engineers
• Nurses and some allied health professionals

You may be able to borrow up to $4.5 million with no LMI, and sometimes with less than a 10% deposit.

Capitalised LMI

Don’t want to pay LMI upfront? You can add it to your mortgage and repay it gradually. This is called capitalising LMI. Many lenders allow this on 10% deposit loans.

Exclusive Interest Rate Discounts

We have access to special lender offers, including:

• 1.10% interest rate discount for loans over $500,000

• 1.00% discount for loans between $250,000–$500,00

• Must meet basic employment, deposit, and LMI capitalisation criteria

• Available on both purchases and refinances

These limited-time offers often beat advertised bank rates. Talk to us today.

Can I Borrow More Than $1 Million?

Yes, under the right conditions. While most lenders cap 10% deposit loans at $1 million, some allow up to $2 million if:

• The lender has a special LMI agreement

• You have additional security (e.g., equity in another property)

Speak with our mortgage experts to explore these options.

Additional Costs You Need To Know

Your 10% deposit doesn’t cover everything. Be prepared for other expenses totalling 3–5% of the property value, such as:

• Home loan application and settlement fees

• Stamp duty (may be discounted for first home buyers)

• Conveyancing or solicitor fees

• Property inspections (building/pest)

• LMI (unless waived or capitalised)

• Home insurance and utility connection fees

Understanding these upfront costs will help you budget more effectively.

First Home Buyer Perks

You might qualify for the First Home Guarantee (previously First Home Loan Deposit Scheme). This allows eligible first home buyers to buy with a 5–10% deposit without paying LMI, thanks to a government guarantee.

With expert help, a 10% deposit can go further than you think.

Call us at 1300 889 743 or complete our free assessment form. One of our low deposit specialists will contact you within 24 hours.