Most first home buyers and many investors choose to borrow 90% of the purchase price, why?

Lenders are less conservative with this type of home loan because there’s some equity in the property right from the beginning.

That being said, you’ll still have to meet normal credit guidelines and serviceability requirements to get your loan approved.

Do you qualify for a 1.40% rate discount?

One of our lenders has come out with a discount that’s well ahead of the other banks. This is a special offer and will be removed from our website when it’s no longer available.

Interest rate discount criteria:

  • One lender currently has a 1.40% discount as a special offer for all loans over $500,000 & 1.30% for all loans over $250,000 up to $500,000!
  • Purchases and refinances are both accepted.
  • You don’t need genuine savings if you’re paying rent or can otherwise prove that you can manage your money well.
  • You’re borrowing no more than 90% of the property value plus Lenders Mortgage Insurance – LMI (up to 95% on a case by case basis).
  • You must have been in current your job for at least 3 months, with 24 months in the same line of work.
  • You have a perfect credit history.

This may be withdrawn at any time. Please call us on 1300 889 743 or enquire online to talk to one of our mortgage brokers and find out if you’re eligible for this offer.

Do I qualify for a 90% loan?

Each bank and non-bank lender in Australia has their own set of lending guidelines that they use to assess your application. The secret to getting your loan approved is in knowing which lender is a good match for you.

So who’s eligible for a 90% loan?

  • Loan purpose: To purchase, refinance or build an owner occupied or investment property. Some other loan purposes such as debt consolidation are acceptable on a case by case basis.
  • Credit history: Minor paid utility defaults and other small defaults are sometimes acceptable if your application is strong in other areas.
  • Other debts: You must be paying your current liabilities such as rent, credit cards and personal loans on time.
  • Employment: Stable employment is preferred, generally 6 months in your current job or 2 years in the same line of work.
  • Income: Your serviceability (ability to pay the loan) must be strong.
  • Savings: 5% of the purchase price in genuine savings isn’t necessarily required by all lenders. No genuine savings applications (deposit from a gift, sale of an asset, etc.) are considered if you have a clear credit history.

Which lender will approve your loan? Call us on 1300 889 743 or enquire online to speak to a mortgage broker that specialises in 90% home and investment loans.

Genuine or non genuine savings?

This is the most important factor to consider when selecting a lender to apply with. Most lenders in Australia require you to have 5% of the deposit saved in a bank account over 3 to 6 months. However, some lenders will allow you to borrow 90% LVR (Loan to Value Ratio) with no genuine savings.

This means that if you’ve received a gift, inheritance, first home owners grant or even taken out a personal loan (in some limited cases), you may be eligible to borrow 90% LVR with no evidence of genuine savings. The best news is that the rates are the same as that of a regular loan.

Which loan is the best?

Firstly, we work out which lenders you can qualify for a loan with. We do this by asking you to complete a simple generic application form and faxing it to us with your payslips, bank statements and other documents usually required by most lenders.

We then look at your situation the way the lenders do and work out if your deposit size (usually a 10% – 15% deposit) is sufficient to pay the stamp duty, LMI and associated costs with the purchase.

Once we know which lenders are likely to approve your loan, we can then compare the interest rates, fees and LMI premiums they charge to work out which loan is the cheapest and most suitable for you.

Although lenders often have similar professional package interest rates for their 90% home loans, there are often significant differences in their fixed rates, hidden fees and LMI premiums. We’ve created a Lenders Mortgage Insurance Calculator, which you can use to estimate the LMI Premium you’d pay with a range of lenders and insurers.

We’ll typically recommend a shortlist of three lenders that you can then choose the appropriate loan from, be it a pro pack, basic loan, line of credit or fixed rate loan. Please call us on 1300 889 743 or enquire online if you’d like one of our mortgage brokers to do the shopping around for you.

Can I get a 90% home loan over $1,000,000?

Did you know that most lenders will only approve a 90% mortgage up to $1,000,000?

They will only allow you to borrow more than this if you have multiple properties as security for the home loan. This is due to policy restrictions from the mortgage insurers. One of our banks has an agreement with their mortgage insurer and so can consider a 90% loan up to $2,000,000 for people who are in an exceptionally strong financial position.

For loans up to $1,500,000 at 90% LVR, it may be possible to borrow a little extra to cover the cost of the LMI premium. However, for larger loans the mortgage insurance can’t be borrowed, and so you’ll only receive around 87% of the property value after LMI has been deducted.

Why only 90%?

Many Australian lenders have limited their maximum loan amount to 90% of the purchase price plus the capitalised LMI premium. The reasons behind this are complex. However, in essence, most lenders are concerned about the number of first home buyers with no savings history entering the market and the volatility, this may create in house prices.

This is the primary reason why many lenders have withdrawn 95% loans and all lenders have withdrawn 100% loans.

Another factor is that some banks have been inundated with applications far in excess of what they can normally process. When demand for credit outstrips the supply of funds, banks tend to restrict their credit policy to reduce the number of people applying for loans.

Save a little more to save heaps in LMI!

LMI rates increase significantly when you go over the 90% LVR mark.

Saving just a little more to bring your LVR back to 90% can save you a lot more in LMI.

For example, if you had a $60,000 deposit (in genuine savings) to buy a property worth $700,000, your LVR would be 91.43%.

Bear in mind, this doesn’t take into the costs of completing the purchase such as stamp duty and legal fees.

Nevertheless, for a $640,000 loan at 91.43% LVR, you could be paying over $28,000 in LMI.

If you were to come up with just $10,000 more for your deposit, you could reduce your LMI premium to just over $14,000.

Essentially, you could save more than $14,000 if you had around $70,000 as a deposit.

You’d be more than $4,000 better off by choosing the right lender!

Try our LMI calculator to get an idea of how much you could save.

After that, speak with one of our mortgage brokers so we can do a complete product comparison.

Depending on the amount you’re looking to borrow, the state in which you live in and whether you’re a first home buyer, saving more to reduce your LVR may not necessarily be in your best interests.

How do I apply for a 90% home loan?

Our mortgage brokers specialise in getting tough loans approved. Please enquire online or call us at 1300 889 743 to speak to one of our experienced brokers.

  • Noah

    I’ve a limited deposit and am looking to buy a property worth 430k, can I have a 90% home loan?

  • Hi Noah, though most major lenders limit their lending to 80%, it wouldn’t be a problem to get a 90% home loan to buy the property you are after, if all other aspects of your applications are strong. By other aspects, I mean your ability to afford the loan, at least 5% of the deposit to be genuine (saved over a period of 3-6 months), your credit history among others.

  • New discounts are now available up to 1.5% off the BSV Rate. Most borrowers are eligible for a 1.3% to 1.4% discount.

  • Lauren

    Although I’m a Russian here on a 457 work visa, can I borrow 90% to buy an investment property in Queensland? The property is just $400k. A thing to note is that 9 months ago I had $150k in my bank but due to a bit of mismanagement and lavish living, it has dwindled down to $65k (bought a car, bought some furniture). Hope this won’t be a big issue.

  • Hey Lauren,

    Queensland duty for foreigners will commence from October 1 so if you want to avoid this, you’ll have to sign a contract within 2 weeks. We have thought up a few lenders that can help. The drop in savings is okay but you will need to show evidence of buying a new car and furniture. For a strong application, you can show your rental history and also where the funds come from in Russia, if applicable. Enquire online and one of our mortgage brokers will get back to you:

  • Cairnduff

    The bank that I want to get my loan with said that they need me to show genuine savings so can I use my rental history to prove that?

  • Hello Cairnduff,

    As long as you can show that you’ve been paying rent on time and in full for a minimum of 3 months, there are some lenders that can accept a gift from your parents, bonus/ dividend/ commission income, inheritance, sale of a non-real estate asset, tax refund, personal loan or even FHOG as part of your deposit. Find out more on how you can use rent as genuine savings here:

  • NM

    It seems my bank has yet to pass on the RBA rate cut to my 90% home loan. Any way I can get them to give me a better rate?

  • NM

    Hey NM,

    You can speak to your bank directly and ask for a better deal. If they won’t budge, you can shop around and refinance with a lender that’s willing to give you the deal your current lender isn’t. This is even easier with an expert mortgage broker so please feel free to discuss this with one by calling 1300 889 743.

  • Al

    Is 95% the max that we can borrow for a home loan?

  • Actually, if you capitalise the LMI on a 95% home loan then you can technically borrow up to 97% of the property value. Now if you have a guarantor then you can even borrow up to 105% of the property value!

  • Ranch

    Will I be able to borrow 90% on a home loan with a 203 visa here in Australia?

  • Hi Ranch,
    Yes, you can actually go up to 95%. Please call 1300 889 743 if you’d like to discuss your situation and loan needs with a 203 visa home loan specialist.

  • kenneth

    Is it possible to get a 90% home loan and then borrow the stamp duty as well? We can qualify for the 90% lend it seems but getting to borrow this on top would be great.

  • kenneth

    Unfortunately, stamp duty is a sizeable amount so most banks will only allow you to borrow to pay for the cost of stamp duty if your loan is backed by a guarantor. However, there are also circumstances where stamp duty may not be applicable, such as for some first home buyers or if you are buying a new home. This varies across between the states and territories depending on the current government incentives and programs.

  • Hinkle

    I really like the interest rate discount that you’ve mentioned on your page but I’m not sure if I can qualify for a 90% home loan just yet. Maybe I can go 85% right now but am wondering if it would be better to buy now or wait and save a larger deposit…

  • Hi Hinkle,
    Well an 85% home loan can be a great option too because you may be able to get a negotiated interest rate on it too, plus two of our lenders currently have a special where they are offering no LMI home loan at this LVR if you can meet their requirements such as borrowing a max of $1 mil and having a clean credit history. However, you can try out the buy now or save more calculator to find out exactly how much difference it can make:

  • Shivin Bhatia


    I’m interested in a 95 or 97% home loan with a guarantor. Please contact me on 0401171713.


  • Hi Shivin,
    You contact number has been forwarded to our team but since it’s not a business day today, you may have to wait until tomorrow.

  • Shivin Bhatia

    I am yet to hear from you.

  • Heaven

    I have recently heard that major banks have restricted their investment lending to 90% only, is this right?

  • Yes Heaven, all the major banks and tier 2 lenders have reduced their lending to investment home loans to 90% inclusive of Lenders Mortgage insurance (LMI) due to a crackdown by the regulatory bodies, namely the Australian Prudential Regulation Authority (APRA). However, there are other specialist lenders who still lend upto 95% for investment properties. Please call us at 1300 889 743 to speak to one of our experienced brokers and discuss how you could borrow more.

  • Edward23

    Hi, I’m planning to buy a property in Adelaide worth $500,000. I’ve got a good credit history and a good annual income of $85,000. However, the catch is I don’t have any deposit and my parents have agreed to gift me $50,000 to purchase the property. Is this something your banks are willing to accept?

  • Hi Edward23,
    Most lenders in our panel require 5% genuine savings of the purchase price, i.e. savings of your own over a period of 3 months. Fortunately, if you’re receiving a gift and you’re borrowing up to 90% of the property value, then there are some lenders who may accept the deal even without your own savings. Also, the interest rates will be the same as a standard home loan. Call us on 1300 889 743 and find out which banks you can apply with.

  • Rhapsody

    I’m looking to buy a hobby farm in Castle Hill. It’s 24 hectares in size and there’s a house on the land. Are there any lenders that allow you to borrow up to 90% of the property value for an acreage property?

  • Hi Rhapsody,
    Most of the lenders will not lend you 90% to buy a hobby farm that’s greater than 10 hectares. With some select lenders, you can borrow up to 80% of the property value. Also, the postcode and the services connected to it like water, road, sewage pipes and electricity will also affect your borrowing amount. You can get more information about rural property loans here Call us on 1300 889 743 to find out how much you could borrow.