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Find and compare 80% LVR home loans

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Showing home loans based on a loan of
$
with a deposit of
Product

Choice Package

Real Time Rating™

1.67

/ 5
Interest Rate

4.24

% p.a

Variable

Comparison Rate*

4.26

% p.a

Company
Repayment

$1,060

monthly

Features
Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.67

/ 5
Go to site

Cashback

$2,000 cashback when you refinance a loan of $250,000 or more
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Product

Standard Variable Loan

Real Time Rating™

1.95

/ 5
Interest Rate

3.74

% p.a

Variable

Comparison Rate*

3.78

% p.a

Company
Repayment

$935

monthly

Features
Redraw facility
Offset Account
Borrow up to 95%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.95

/ 5
Go to site
More details
Product

Base Variable Rate Home Loan

Real Time Rating™

2.00

/ 5
Interest Rate

2.99

% p.a

Variable

Comparison Rate*

3.03

% p.a

Company
Repayment

$1,421

monthly

Features
Redraw facility
Offset Account
Borrow up to 95%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

2.00

/ 5
Go to site

Cashback

$2,000 cashback when you refinance a loan of $250,000 or more
More details
Product

Simplicity Plus Loan

Real Time Rating™

1.67

/ 5
Interest Rate

2.98

% p.a

Variable

Comparison Rate*

3.02

% p.a

Company
Repayment

$1,420

monthly

Features
Redraw facility
Offset Account
Borrow up to 90%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.67

/ 5
Go to site
More details
Product

Green Home Loan

Real Time Rating™

4.21

/ 5
Interest Rate

2.08

% p.a

Variable

Comparison Rate*

2.36

% p.a

Company
Repayment

$1,283

monthly

Features
Redraw facility
Offset Account
Borrow up to 90%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

4.21

/ 5
Go to site
More details
Interest Rate

1.99

% p.a

Intro 12 months

Comparison Rate*

2.71

% p.a

Company
Repayment

$1,382

monthly

Features
Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

2.80

/ 5
Go to site
Awards

Winner of Best Investment Home Loan, RateCity Gold Awards 2021

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Product

Yard Investor Loan

Real Time Rating™

3.80

/ 5
Interest Rate

2.19

% p.a

Variable

Comparison Rate*

2.22

% p.a

Company
Repayment

$1,299

monthly

Features
Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

3.80

/ 5
Go to site
More details
Product

Green Construction Home Loan

Real Time Rating™

2.76

/ 5
Interest Rate

2.08

% p.a

Variable

Comparison Rate*

2.39

% p.a

Company
Repayment

$520

monthly

Features
Redraw facility
Offset Account
Borrow up to 90%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

2.76

/ 5
Go to site
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Learn more about home loans

What is an 80% LVR home loan?

An LVR is a financial term you may come across in your home loan journey. The LVR, or loan-to-value ratio, of your home loan equates to how much money you’re borrowing (loan amount) versus the value of the property being purchased.

Lenders use this measuring tool to assess your riskiness as a borrower and it can determine your interest rate. In theory, the larger a deposit, the better your financial discipline and ability to potentially meet mortgage repayments.

For example, on a $500,000 property, if you saved $100,000 this would add up to a 20 per cent deposit. This means that you would therefore be borrowing the remaining 80 per cent of the property’s value as a loan from a lender. The loan-to-value ratio is 80 per cent.

What are the benefits of an 80% LVR home loan?

There are a range of benefits to taking out an 80 per cent LVR home loan. In fact, it’s generally recommended to aim for a deposit minimum of 20 per cent due to the raft of benefits, including:

  1. Avoiding LMI. Lenders mortgage insurance (LMI) is a pesky insurance you’ll need to pay if you have an LVR under 80 per cent. As mentioned above, there is higher risk to a lender by lending money to borrowers with smaller deposits than 20 per cent. This insurance helps to protect the lender in the event you default on the loan. It can cost tens of thousands of dollars, and an 80 per cent LVR is a helpful way to avoid this cost.
  2. Less debt. Another benefit to consider is that the larger your deposit, the less debt you’re taking on by having a smaller home loan. This will not only mean smaller ongoing mortgage repayments, but less interest charged over the life of the loan.
  3. Lower rates. Some lenders reward reliable borrowers with LVRs of 80 per cent by offering them more competitive interest rates. The lower your interest rate, the lower your mortgage repayments, which means good news for your budget. In fact, if you have a high LVR you may be offered a higher interest rate. 
  4. Higher chance of approval. When applying for a home loan, you'll find that lenders have their own lending criteria. Most lenders will look at your bank account for proof that you are regularly saving and therefore more financially stable and eligible for a loan. If you have a 20 per cent or higher deposit, this may present you in a more favourable light to the lender, potentially increasing your chance of approval.
  5. More loan options. Some lenders limit borrowers’ access to certain, more competitive, home loan products if they have smaller deposits. By searching for an 80 per cent LVR home loan you may have success to a greater variety of loan options with reduced fees, helpful features or credit card packages.

What if I don’t have a 20 per cent deposit?

Saving up a 20 per cent deposit is no easy feat, especially if you’re looking to purchase property in Sydney or Melbourne where median prices are sky high. There are a few things home buyers can do now to try and bolster their home loan applications and potentially reach an LVR of 80 per cent with a larger deposit.

  • Get a guarantor. If you’re not financially able to save up a 20 per cent deposit yourself, you may consider bringing on a guarantor. This involves having someone else (typically family) come on to your home loan and offer up security (typically home equity) to bolster your application. The guarantor may take financial responsibility if you were unable to meet mortgage repayments. It does not necessarily mean a guarantor covers the whole loan amount. In fact, you can bring a guarantor on to cover the gap in your deposit so you can aim for an 80 per cent LVR. It also means less risk to the lender that you may default on the loan.
  • Boost your credit score. Your credit history is a key factor that determines not only whether you get a competitive interest rate from a lender, but whether you’ll be approved for a loan. If your credit score is not ideal, consider working on increasing it before you apply for your home loan.
  • Move back home. Moving back home with family can be a very simple way to save more money. Rent is arguably the biggest ongoing bill you have and can often be more expensive than mortgage repayments. If you’re aiming for a 20 per cent deposit but still falling short, swallow your pride and head home for a little while to increase your savings.
  • Downgrade or sell your car. A car is another costly expense that can significantly chip away at your budget when saving for a home. If you’re in a suburb with great access to public transport or ride sharing apps, consider selling your car for some extra cash. If this is not possible, you may want to consider downgrading to a more affordable model, just until your loan is approved.

What type of property can I purchase with an 80% LVR home loan?

The good news about 80 per cent LVRs is that you’re opening yourself up to a wider range of home loan options than if you saved a smaller deposit.

80 per cent LVR home loans are typically available to owner-occupiers and investors, whether shopping around for existing dwellings, land packages or new home builds. It will also afford you access to both fixed rate home loans and variable rate home loans. You may also gain access to loans with handy features, like an offset account, redraw facility or the ability to make extra repayments.

All that matters is the valuation of the property is within a range that your deposit does not fall below 80 per cent. Be careful in the real estate search and try to stay within a healthy property price range. This may mean not aiming for your dream postcode right away and looking in similar suburbs nearby – especially for first home buyers.

Also, try to keep up to date with the housing market, so you can watch for potential market value fluctuations. If there is a dip, that may be a more ideal time to buy property. But you may want to avoid buying in an area that will continue to lose property value, so be careful.

How do I find 80% LVR home loans?

  • Comparison tables. This comparison tool allows you to search for and filter down 80 per cent LVR home loans. You can enter the amount you want to borrow and property value to view loans within your LVR range. Then you can filter down and compare options side by side, to find a loan with an interest rate, fees and features that suit your financial needs.
  • Calculators. Not sure which home loan to choose? A home loan calculator may be able to help. Narrow down your short list with a mortgage repayment calculator to see how your loan options and their potential repayment amounts stack up against your budget. You can even calculate how much you may be able to borrow to get a better idea of your LVR before you begin your mortgage search.
  • Mortgage broker. Not sure if you’ll qualify for a 80% LVR home loan? It may be worth consulting with a mortgage broker. Mortgage brokers are considered experts in their field and may be able to offer advice and assistance in being approved for a home loan.

Frequently asked questions

What is a loan-to-value ratio (LVR)?

A loan-to-value ratio (otherwise known as a Loan to Valuation Ratio or LVR), is a calculation lenders make to work out the value of your loan versus the value of your property, expressed as a percentage.   Lenders use this calculation to help assess your suitability for a home loan, and whether you need to pay lender’s mortgage insurance (LMI). As a general rule, most banks will require you to pay LMI if your loan-to-value ratio is 80 per cent or more.   LVR is worked out by dividing the loan amount by the value of the property. If you are looking for a quick ball-park estimate of LVR, the size of your deposit is a good indicator as it is directly proportionate to your LVR. For instance, a loan with an LVR of 80 per cent requires a deposit of 20 per cent, while a 90 per cent LVR requires 10 per cent down payment. 

LOAN AMOUNT / PROPERTY VALUE = LVR%

While this all sounds simple enough, it is worth doing a more accurate calculation of LVR before you commit to buying a place as there are some traps to be aware of. Firstly, the ‘loan amount’ is the price you paid for the property plus additional costs such as stamp duty and legal fees, minus your deposit amount. Secondly, the ‘property value’ is determined by your lender’s valuation of the property, not the price you paid for it, and sometimes these can differ so where possible, try and get your bank to evaluate the property before you put in an offer.

How much deposit do I need for a home loan from ANZ?

Like other mortgage lenders, ANZ often prefers a home loan deposit of 20 per cent or more of the property value when you’re applying for a home loan. It may be possible to get a home loan with a smaller deposit of 10 per cent or even 5 per cent, but there are a few reasons to consider saving a larger deposit if possible:

  • A larger deposit tells a lender that you’re a great saver, which could help increase the chances of your home loan application getting approved.
  • The more money you pay as a deposit, the less you’ll have to borrow in your home loan. This could mean paying off your loan sooner, and being charged less total interest.
  • If your deposit is less than 20 per cent of the property value, you might incur additional costs, such as Lenders Mortgage Insurance (LMI).

What are the pros and cons of no-deposit home loans?

It’s no longer possible to get a no-deposit home loan in Australia. In some circumstances, you might be able to take out a mortgage with a 5 per cent deposit – but before you do so, it’s important to weigh up the pros and cons.

The big advantage of borrowing 95 per cent (also known as a 95 per cent home loan) is that you get to buy your property sooner. That may be particularly important if you plan to purchase in a rising market, where prices are increasing faster than you can accumulate savings.

But 95 per cent home loans also have disadvantages. First, the 95 per cent home loan market is relatively small, so you’ll have fewer options to choose from. Second, you’ll probably have to pay LMI (lender’s mortgage insurance). Third, you’ll probably be charged a higher interest rate. Fourth, the more you borrow, the more you’ll ultimately have to pay in interest. Fifth, if your property declines in value, your mortgage might end up being worth more than your home.

How much deposit do I need for a home loan from NAB?

The right deposit size to get a home loan with an Australian lender will depend on the lender’s eligibility criteria and the value of your property.

Generally, lenders look favourably on applicants who save up a 20 per cent deposit for their property This also means applicants do not have to pay Lenders Mortgage Insurance (LMI). However, you may still be able to obtain a mortgage with a 10 - 15 per cent deposit.  

Keep in mind that NAB is one of the participating lenders for the First Home Loan Deposit Scheme, which allows eligible borrowers to buy a property with as low as a 5 per cent deposit without paying the LMI. The Federal Government guarantees up to 15 per cent of the deposit to help first-timers to become homeowners.

How do I apply for a home improvement loan?

When you want to renovate your home, you may need to take out a loan to cover the costs. You could apply for a home improvement loan, which is a personal loan that you use to cover the costs of your home renovations. There is no difference between applying for this type of home improvement loan and applying for a standard personal loan. It would be best to check and compare the features, fees and details of the loan before applying. 

Besides taking out a home improvement loan, you could also:

  1. Use the equity in your house: Equity is the difference between your property’s value and the amount you still owe on your home loan. You may be able to access this equity by refinancing your home loan and then using it to finance your home improvement.  Speak with your lender or a mortgage broker about accessing your equity.
  2. Utilise the redraw facility of your home loan: Check whether the existing home loan has a redraw facility. A redraw facility allows you to access additional funds you’ve repaid into your home loan. Some lenders offer this on variable rate home loans but not on fixed. If this option is available to you, contact your lender to discuss how to access it.
  3. Apply for a construction loan: A construction loan is typically used when constructing a new property but can also be used as a home renovation loan. You may find that a construction loan is a suitable option as it enables you to draw funds as your renovation project progresses. You can compare construction home loans online or speak to a mortgage broker about taking out such a loan.
  4. Look into government grants: Check whether there are any government grants offered when you need the funds and whether you qualify. Initiatives like the HomeBuilder Grant were offered by the Federal Government for a limited period until April 2021. They could help fund your renovations either in full or just partially.  

What is a secured home loan?

When the lender creates a mortgage on your property, they’re offering you a secured home loan. It means you’re offering the property as security to the lender who holds this security against the risk of default or any delays in home loan repayments. Suppose you’re unable to repay the loan. In this case, the lender can take ownership of your property and sell it to recover any outstanding funds you owe. The lender retains this hold over your property until you repay the entire loan amount.

If you take out a secured home loan, you may be charged a lower interest rate. The amount you can borrow depends on the property’s value and the deposit you can pay upfront. Generally, lenders allow you to borrow between 80 per cent and 90 per cent of the property value as the loan. Often, you’ll need Lenders Mortgage Insurance (LMI) if the deposit is less than 20 per cent of the property value. Lenders will also do a property valuation to ensure you’re borrowing enough to cover the purchase. 

What is a low-deposit home loan?

A low-deposit home loan is a mortgage where you need to borrow more than 80 per cent of the purchase price – in other words, your deposit is less than 20 per cent of the purchase price.

For example, if you want to buy a $500,000 property, you’ll need a low-deposit home loan if your deposit is less than $100,000 and therefore you need to borrow more than $400,000.

As a general rule, you’ll need to pay LMI (lender’s mortgage insurance) if you take out a low-deposit home loan. You can use this LMI calculator to estimate your LMI payment.

What is a home loan?

A home loan is a finance product that allows a home buyer to borrow a large sum of money from a lender for the purchase of a residential property. The home is then put up as "security" or "collateral" on the loan, giving the lender the right to repossess the property in the case that the borrower fails to repay their loan.

Once you take out a home loan, you'll need to repay the amount borrowed, plus interest, in regular instalments over a predetermined period of time.

The interest you're charged on each mortgage repayment is based on your remaining loan amount, also known as your loan principal. The rate at which interest is charged on your home loan principal is expressed as a percentage.

Different home loan products charge different interest rates and fees, and offer a range of different features to suit a variety of buyers’ needs.

How do you compare home loans?

To compare home loans, you can assess the components of the loan against your own financial situation and other mortgages in the market.

Look at the interest rate, rate type (fixed or variable), loan fees, features, loan term, repayment frequency and more to find a home loan that fits with your budget and property goals.

Then, use comparison tools like comparison tables, calculators, or RateCity's Real Time RatingsTM to create a short list of home loan options, and decide which home loan best suits your needs.

Can I take a personal loan after a home loan?

Are you struggling to pay the deposit for your dream home? A personal loan can help you pay the deposit. The question that may arise in your mind is can I take a home loan after a personal loan, or can you take a personal loan at the same time as a home loan, as it is. The answer is that, yes, provided you can meet the general eligibility criteria for both a personal loan and a home loan, your application should be approved. Those eligibility criteria may include:

  • Higher-income to show repayment capability for both the loans
  • Clear credit history with no delays in bill payments or defaults on debts
  • Zero or minimal current outstanding debt
  • Some amount of savings
  • Proven rent history will be positively perceived by the lenders

A personal loan after or during a home loan may impact serviceability, however, as the numbers can seriously add up. Every loan you avail of increases your monthly installments and the amount you use to repay the personal loan will be considered to lower the money available for the repayment of your home loan.

As to whether you can get a personal loan after your home loan, the answer is a very likely "yes", though it does come with a caveat: as long as you can show sufficient income to repay both the loans on time, you should be able to get that personal loan approved. A personal loan can also help to improve your credit score showing financial discipline and responsibility, which may benefit you with more favorable terms for your home loan.

Will I have to pay lenders' mortgage insurance twice if I refinance?

If your deposit was less than 20 per cent of your property’s value when you took out your original loan, you may have paid lenders’ mortgage insurance (LMI) to cover the lender against the risk that you may default on your repayments. 

If you refinance to a new home loan, but still don’t have enough deposit and/or equity to provide 20 per cent security, you’ll need to pay for the lender’s LMI a second time. This could potentially add thousands or tens of thousands of dollars in upfront costs to your mortgage, so it’s important to consider whether the financial benefits of refinancing may be worth these costs.

What is a mortgage rate?

The interest rate on a home loan is sometimes called the mortgage rate. This percentage indicates how much interest the lender will charge you with each home loan repayment. Your interest rate is effectively the “cost” of “buying” the money you’re using to buy a property – the higher your mortgage rate, the more your home loan repayments may cost.

Using a home loan calculator, you can estimate how much your home loan repayments may cost, based on your mortgage rate, loan term, and loan amount. This may also be affected by whether you’re making principal and interest repayments or interest-only repayments, if you have a fixed rate or variable rate mortgage, and any fees and other charges that may apply.

How do you determine which home loan rates/products I’m shown?

When you check your home loan rate, you’ll supply some basic information about your current loan, including the amount owing on your mortgage and your current interest rate.

We’ll compare this information to the home loan options in the RateCity database and show you which home loan products you may be eligible to apply for.

 

How do you find cheap home loans?

With so many interest rate options and repayment types available, finding the cheapest home loan may depend on the type of loan you choose.

Whether you’re looking for an owner-occupier or investor loan, with interest-only or principal and interest repayments, on a fixed or variable interest rate, the cheapest home loan rate available may vary greatly.

One way to find the cheapest option for you is to narrow down your search and compare the options that best suit your individual requirements. RateCity’s home loan comparison tables can help you get started on your search and take the hassle out of shopping around.

Can first home buyers apply for an ING home loan?

First home buyers can apply for an ING home loan, but first, they need to select the most suitable home loan product and calculate the initial deposit on their home loan. 

First-time buyers can also use ING’s online tool to estimate the amount they can borrow. ING offers home loan applicants a free property report to look up property value estimates. 

First home loan applicants struggling to understand the terms used may consider looking up ING’s first home buyer guide. Once the home buyer is ready to apply for the loan, they can complete an online application or call ING at 1800 100 258 during regular business hours.

How much deposit will I need to buy a house?

A deposit of 20 per cent or more is ideal as it’s typically the amount a lender sees as ‘safe’. Being a safe borrower is a good position to be in as you’ll have a range of lenders to pick from, with some likely to offer up a lower interest rate as a reward. Additionally, a deposit of over 20 per cent usually eliminates the need for lender’s mortgage insurance (LMI) which can add thousands to the cost of buying your home.

While you can get a loan with as little as 5 per cent deposit, it’s definitely not the most advisable way to enter the home loan market. Banks view people with low deposits as ‘high risk’ and often charge higher interest rates as a precaution. The smaller your deposit, the more you’ll also have to pay in LMI as it works on a sliding scale dependent on your deposit size.

Is the lowest home loan rate always the cheapest?

The home loan with the lowest interest rate may not always be the cheapest mortgage option for you. Sometimes a home loan with a low interest rate may charge high fees, which may cost more in total than a mortgage with a higher interest rate and no fees.

Consider checking the comparison rate, which combines interest and standard fees, to get a better idea of the overall cost of different home loan options.

Can you borrow the deposit for a home loan?

Most lenders will want the majority of your home loan deposit to be made up of ‘genuine savings’ which is income earned from your job. While a small number of lenders may let you use a personal loan or a credit card to help cover the cost of your deposit, this may potentially cost you more in interest, and put your finances at higher risk.

If you haven’t saved a full deposit, it may be possible to effectively borrow the deposit for a mortgage with the help of a guarantor. This is usually a parent of other family member who guarantees your mortgage with the equity in their own property.

It may also be possible to borrow the money for a home loan deposit from a family member (e.g. the Bank of Mum & Dad) or a friend, provided you draw up a formal legal agreement to pay this money back, showing your mortgage lender that you’re taking responsibility.

What are the features of home loans for expats from Westpac?

If you’re an Australian citizen living and working abroad, you can borrow to buy a property in Australia. With a Westpac non-resident home loan, you can borrow up to 80 per cent of the property value to purchase a property whilst living overseas. The minimum loan amount for these loans is $25,000, with a maximum loan term of 30 years.

The interest rates and other fees for Westpac non-resident home loans are the same as regular home loans offered to borrowers living in Australia. You’ll have to submit proof of income, six-month bank statements, an employment letter, and your last two payslips. You may also be required to submit a copy of your passport and visa that shows you’re allowed to live and work abroad.

When does Commonwealth Bank charge an early exit fee?

When you take out a fixed interest home loan with the Commonwealth Bank, you’re able to lock the interest for a particular period. If the rates change during this period, your repayments remain unchanged. If you break the loan during the fixed interest period, you’ll have to pay the Commonwealth Bank home loan early exit fee and an administrative fee.

The Early Repayment Adjustment (ERA) and Administrative fees are applicable in the following instances:

  • If you switch your loan from fixed interest to variable rate
  • When you apply for a top-up home loan
  • If you repay over and above the annual threshold limit, which is $10,000 per year during the fixed interest period
  • When you prepay the entire outstanding loan balance before the end of the fixed interest duration.

The fee calculation depends on the interest rates, the amount you’ve repaid and the loan size. You can contact the lender to understand more about what you may have to pay.