Only have 5% deposit for a home loan?
We can help you find a bank that will approve your loan!
- Get a discounted interest rate and add Lenders Mortgage Insurance (LMI) on to your loan to save thousands upfront.
- Most deposit sources accepted including a gift from your parents and a personal loan.
- Have you been declined? Work with a broker that understands low deposit borrowers.
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Our award-winning mortgage brokers will find you the right home loan for your situation.
How do I qualify for a 5% deposit home loan?
- A good income: Lenders tend to be quite strict when assessing your means of paying off a 5% deposit home loan, otherwise known as your ‘serviceability ratio’.
- Stable employment history: Although there are exceptions, this usually means that you’ve been working in the same job for the past 6 to 12 months.
- A clear credit history: Your credit file must have minimal credit enquiries and be free of defaults. As a general rule, credit cards, rent and bills like utilities and mobile plans need to have been paid on time for the past 6 months.
- Strong asset position: Lenders will assess your income to asset position relative to your age. It’s assumed, for example, that if you’ve been working full time for a few years that you’ll have a car and a decent amount of savings relative to your income.
- Little to no existing debt: Having more than one credit card and/or personal loans is a red flag for most lenders.
- Proof of 5% in genuine savings: This is usually in the form of consistent deposits into a savings account over a period of 3 months. There are some exceptions to this though.
Did you know that there’s a 1.10% rate discount on offer?
One of our lenders currently has a 1.10% discount as a special offer for loans over $500,000, and 1.00% for loans over $250,000 up to $500,000.
To be eligible:
- Your loan must be for no more than 95% of the property value plus LMI.
- The loan must be for more than $250,000 and less than $1,000,000.
- You must have at least 5% in genuine savings (some exceptions are made for renters).
- You must be buying a property (refinances aren’t accepted).
- You must have been in your job for at least 6 months, with 24 months in the same line of work.
- You must have a clean credit history.
What if I have less than a 5% deposit?
One of our lenders allows you to apply for an additional loan facility with a limit of up to $20,000 along with your 55 deposit home loan!
The catch is that you must have at least 5% of the purchase price saved in a bank account to pay your deposit and qualify for the mortgage. You just have to have the money saved; you don’t have to put it down as your deposit.
The funds from this additional loan can be used at settlement for costs such as stamp duty and conveyancing fees just like the funds from the mortgage.
The interest rate is the same as the home loan but you’re required to pay off the loan quickly so the repayments are relatively high. Therefore, this option is only viable for people with a high income.
With the additional loan and capitalised mortgage insurance, the total loan is often over 100% of the purchase price!
This is a great option for second home buyers who have 5% in genuine savings, yet do not have the funds to cover the stamp duty and other purchasing costs.
We’ve lent more than $4 billion+ Australia-wide.
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They walked us through the process step by step
We would like to say thank you to Hank from Home Loan Experts for all his help in getting us a guarantor loan.
We were really unsure if we would ever get an approval for a home loan, but Hank immediately knew the right lender to approach for our situation, and made the whole process simple…
We would definitely recommend Home Loan Experts to anyone. Thanks again to Hank and the team from Home Loan Experts for making it possible for us to own our first home.
Ianthe S & Jadobi l, Carina QLD
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A very friendly, professional and helpful team
The team was very friendly, professional, helpful and went out of their way to get the right loan that was suitable for us… I recommend this service for those who find it very hard to purchase a property going directly to a bank. Thank you Home Loan Experts, you have finally given my family and me the opportunity to own a beautiful home.
Denise H, Epping VIC
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A lot smoother and less stressful than having to deal with banks as an individual
Our mortgage broker was very personable and made us feel like he went above and beyond to assist us in getting our home loan. He had a great knowledge of guarantor home loans which set our minds at ease. He was happy to answer any questions even outside business hours and responded in a professional and timely manner. As a second home buyer I would recommend going through the home loan experts as this process was a lot smoother and less stressful than having to deal with banks as an individual. I would especially recommend Hoa to others.
Melissa H & Rhys B, Wynnum West QLD
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Exceeded my expectations in terms of results
Throughout the process I felt confident in knowing I could rely on you and at no stage did I ever feel that trust could be an issue with you. You have exceeded my expectations in terms of results and have done this with very short notice. You are an asset to your company and a role model to your profession… I already have and will continue to recommend your services to friends and family.
Thomas M & Tanya W, Botany NSW
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So easy to speak to no matter how stressful the situation
We are both so grateful to Amine for all of his hard work and great advice over the past year! It’s been such a long journey… We are starting to settle into our new home in Trentham now. It is just so beautiful and relaxing! We really love it and are so happy with our purchase. Amine was right all along – things happen for a reason! Thank you Amine for always being there for us.
Tanya & Andrew B, West Melbourne VIC
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He even made a guarantor loan from our parents seem effortless!
After the roller coaster ride of going cap in hand to the bank manager, only to be turned away… we found Tony. What a refreshing change! Within a 2 week time frame, we had approval and were able to follow the normal approval process to get the loan…. With Tony’s inside knowledge on how lenders think he was able to approach the bank with an excellent case and really put us in a great position in the lender’s eyes…. We recommend Tony and Home Loan Experts strongly and will be using them for our next purchase…
Julie W & Luisa C, Waikiki WA
