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.

Am I eligible for a 10% deposit home loan?

The eligibility criteria includes:

  • Being in a stable job: Showing that you’ve been working in your current job for 6 months or in the same line of work for 2 years is a good indication to the bank that you can manage your repayments (not all lenders require this work history).
  • Showing a positive credit file: Some will accept small paid utility defaults and other minor miss payments if your application is otherwise strong.
  • Having minimal current debt: Showing a 6 month history of paying your bills, rent and credit cards on time will work in your favour when applying for a 10% deposit home loan.
  • Having a strong income: You’ll need to meet the banks’ serviceability ratio, which is basically an assessment of your ability to continue to make home loan repayments.
  • Holding 5% of the deposit as genuine savings: Most commonly, regular deposits into a savings account over a period of 3 months will meet the ‘genuine savings’ requirement that most lenders have. Despite this, there are no genuine savings home loans available if you meet certain requirements.

Simply complete our free assessment form or call us directly on 1300 889 743 and one of our low deposit specialists will let you know if you qualify.

A 1.10% interest rate discount is on offer!

If you can meet the following requirements, you may be eligible for a 1.10% interest rate discount.

Not only is this better than anything the banks are currently offering but it’s also a limited time offer so it’s better to act sooner rather than later.

  • The discount is available on all purchases and refinances.
  • You must have a history of at least 3 months in your current role or 2 years in the same line of work.
  • The 1.10% discount only applies when borrowing more than $500,000 but, for loans between $250,000 and $500,000, there is a 1.00% interest rate discount available.
  • Most lenders require you to have genuine savings but not all of them! Some will use your rental payment history in lieu of this requirement.
  • The discount is also only applicable if you have at least a 10% deposit and you’re capitalising Lenders Mortgage Insurance (LMI) on to your mortgage. By capitalising or adding LMI on to your 10% deposit home loan, you’ll simply pay this premium off as part of your normal mortgage repayments, interest free, and avoid this cost upfront.

Is it possible to borrow more than $1 million?

Applying for a home loan with just a 10% deposit is considered to be a high LVR (Loan to Value Ratio) mortgage. In other words, it’s considered to be a high risk home loan.

It’s because of this that you’ll usually only be able to borrow up to $1 million. However, you may be able to borrow more than this if:

  • You choose a bank that has a special agreement with their LMI provider that will allow borrowers with a 10% deposit to borrow up to $2,000,000.
  • You already own a few properties that you can use as security for the mortgage.

Please speak to one of our 10% deposit home loan specialists, who can assess your situation and provide the right solution for you.

Waived LMI on a 10% deposit home loan

If you meet certain requirements, there are actually waived LMI solutions out there.

These requirements pertain to your profession. Doctors in particular are given preferential treatment by most lenders in Australia and can avoid LMI if they are qualified and registered with the Australian Medical Association:

  • Other eligible specialists in the medical field include dentists, optometrists, veterinarians and pharmacists.
  • The amount you can borrow is limited to $4.5 million.
  • Qualifying with less than a 10% deposit is sometimes possible.

Did you know that there are other select professionals outside of the medical industry that may qualify for 10% deposit waived LMI including accountants, lawyers and mining engineers?

Please check out the no LMI page for more information or complete our free assessment form so one of our mortgage brokers can get back to you within a day.

Don’t worry if you don’t qualify for waived LMI on a 10% deposit home loan though. You may be able to save thousands upfront if you qualify for capitalised LMI instead.

Is a 10% deposit all I need?

Did you know that there are other costs to getting a home loan and buying a property that are not covered by your deposit?

Your 10% deposit works as a down payment on the property that you want to buy but, depending on what type of home loan you need, the property type and whether you’re a first home buyer or not, there are other costs which amount to around 3-5% of the property value, including:

  • Home loan application fees (this includes application and settlement fees, as well as accounting fees, such as managing an offset account).
  • Conveyancing or solicitors fees.
  • LMI.
  • Home building insurance.
  • Stamp duty (this government fee is charged on both the mortgage and the property).
  • Transfer of title costs.

Learn more about the extra costs of buying a home.

What is genuine savings and do I need it?

Even with 10% deposit, most lenders will require you to have saved at least 5% in a savings account that’s been accumulated as a result of regular deposits over a period of 3 months.

This is known as genuine savings, although, by clicking through to the link, you’ll find that other types of savings will meet this requirement.

Is your 10% deposit a gift from your parents?

In order to get a 10% deposit home loan, you can either save up 5% in genuine savings or you can go with a lender that doesn’t have this genuine savings requirement.

Our mortgage brokers are no genuine savings specialists so please call 1300 889 743 or complete this form to receive a free assessment within 24 hours.

Speak to a mortgage broker today

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

There are 10% deposit home loan solutions out there and, with help from an experienced mortgage broker, you can even get a great deal.

Please call 1300 889 743 or complete our free assessment form to discuss your situation with us today.

  • EGovett

    Aside from the regular costs of buying a home, what government fees will I have to pay?

  • Hey there, the major government fees that you’ll have to pay include stamp duty, mortgage stamp duty (abolished in most states), transfer fee and registration fees. Stamp duty will be one of the largest expenses, however, there are stamp duty waivers available for eligible applicants. You can find out more about this here:

  • Tamara

    I’ve been renting for over a year now, can I just show my rent as genuine savings?

  • Hi Tamara,

    Yes, you may be able to use rent as genuine savings though you’ll need to provide a rental ledger from a licenced real estate agent that shows you’ve been making your rental repayments in full and on time for a minimum of 3 months (preferred 6-12). You’ll also need to have a 5% deposit at least and a strong financial position. Please check out the rent as genuine savings page to learn more:

  • Larry

    What about 10% deposit investment loans? Are they still available?

  • A number of major banks have limited the number of 90% investment loans they will approve. Luckily, there are non-bank lenders who can help you borrow the amount you need to achieve your investment goals. You can read all about this on the 90% investment loans page:

  • Roddy

    Hello there,
    Would I be able to get a 10% deposit home loan here even if I am on a 201 visa?

  • Hi Roddy,
    You may qualify for a 10% deposit home loan as long as you can meet the above eligibility criteria. Please call 1300 889 743 to discuss this with an expert 201 visa home loan specialist.

  • Benjamin

    My low deposit home loan application didn’t pan out well a few months back so I waited and saved a bigger deposit. Unfortunately, I had to use part of that deposit so I’m kinda back where I was. I had a 3% deposit before but now it’s actually 10% though. I went straight to the bank last time but I would like to get one of your brokers to help me with my low deposit home loan this time around.

    What’s the best way to proceed with this?

  • Hi Ben,
    Our mortgage brokers specialise in low deposit home loans so we’d be delighted to help. To proceed with this, you can call 1300 889 743 and directly speak with one of our expert brokers and discuss. Or even simpler, you can enquire online through the link below and one of us will contact you instead: