RateCity.com.au
powering smart financial decisions
RateCity.com.au

Find and compare low deposit home loans

Loan purpose

Loan amount

$

Deposit

Loan term

151015202530

25 years

Show Online Partners Only?

We provide links to our Online Partners. If you click through to an Online Partner, you can get more product information, apply for or purchase the product and RateCity may earn a fee for referring you. This is one of the ways RateCity makes money and how we can offer our comparison service to you for free. See how we make money for more.

Sort by

Default

All filters

Loan purpose
Loan amount
$
Deposit
Loan type
151015202530

25 years

Repayment type
Features
Specials
Fees
States
Providers

Type of lender

Online Partner

Show Online Partners Only?

We provide links to our Online Partners. If you click through to an Online Partner, you can get more product information, apply for or purchase the product and RateCity may earn a fee for referring you. This is one of the ways RateCity makes money and how we can offer our comparison service to you for free. See how we make money for more.

Product

Variable Loan Package

Real Time Rating™

3.88

/ 5
Interest Rate

3.09

% p.a

Variable

Comparison Rate*

3.52

% p.a

Company
Repayment

$1,437

monthly

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

3.88

/ 5
Go to site

Cashback

Get $4,000 cashback when you refinance your home loan over $500,000. ~ Ends in about 4 hours
Product

Fixed Home Loan

Real Time Rating™

4.26

/ 5
Interest Rate

3.79

% p.a

Fixed - 1 year

Comparison Rate*

2.55

% p.a

Company
Repayment

$948

monthly

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

4.26

/ 5
Go to site
Product

First Home Buyer Loan Variable Rate

Real Time Rating™

4.47

/ 5
Interest Rate

2.64

% p.a

Variable

Comparison Rate*

2.67

% p.a

Company
Repayment

$1,367

monthly

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

4.47

/ 5
Go to site

special

Borrow up to 95% without requiring LMI under the First Home Loan Deposit Scheme
Product

Accelerator package home loan

Real Time Rating™

4.41

/ 5
Interest Rate

2.49

% p.a

Variable

Comparison Rate*

2.93

% p.a

Company
Repayment

$1,344

monthly

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

4.41

/ 5
Go to site
Product

Accelerator package home loan

Real Time Rating™

4.03

/ 5
Interest Rate

2.69

% p.a

Variable

Comparison Rate*

3.13

% p.a

Company
Repayment

$1,375

monthly

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

4.03

/ 5
Go to site
Product

Fixed Home Loan

Real Time Rating™

4.26

/ 5
Interest Rate

3.79

% p.a

Fixed - 1 year

Comparison Rate*

2.55

% p.a

Company
Repayment

$948

monthly

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

4.26

/ 5
Go to site
Product

Standard Variable Home Loan

Real Time Rating™

4.69

/ 5
Interest Rate

2.39

% p.a

Variable

Comparison Rate*

2.44

% p.a

Company
Repayment

$1,329

monthly

Features
Redraw facility
Offset Account
Borrow up to 98%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

4.69

/ 5
Go to site
Product

Ultimate Home Loan Package

Real Time Rating™

3.19

/ 5
Interest Rate

2.89

% p.a

Variable

Comparison Rate*

3.12

% p.a

Company
Repayment

$723

monthly

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

3.19

/ 5
Go to site
Product

Discounted Variable Rate Home Loan

Real Time Rating™

2.03

/ 5
Interest Rate

5.29

% p.a

Variable

Comparison Rate*

4.91

% p.a

Company
Repayment

$1,805

monthly

Features
Redraw facility
Offset Account
Borrow up to 94.99%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

2.03

/ 5
Go to site
Product

Fixed Home Loan

Real Time Rating™

3.47

/ 5
Interest Rate

4.09

% p.a

Fixed - 2 years

Comparison Rate*

2.71

% p.a

Company
Repayment

$1,023

monthly

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

3.47

/ 5
Go to site
Product

Variable Loan Package

Real Time Rating™

2.17

/ 5
Interest Rate

3.79

% p.a

Variable

Comparison Rate*

3.74

% p.a

Company
Repayment

$948

monthly

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

2.17

/ 5
Go to site

Cashback

Get $4,000 cashback when you refinance your home loan over $500,000. ~ Ends in about 4 hours
Product

Premium Home Loan

Real Time Rating™

2.14

/ 5
Interest Rate

4.59

% p.a

Variable

Comparison Rate*

4.97

% p.a

Company
Repayment

$1,148

monthly

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

2.14

/ 5
Go to site
Product

Value Advantage Package

Real Time Rating™

2.14

/ 5
Interest Rate

4.79

% p.a

Variable

Comparison Rate*

5.18

% p.a

Company
Repayment

$1,198

monthly

Features
Redraw facility
Offset Account
Borrow up to 94.99%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

2.14

/ 5
Go to site
Product

Standard Variable Loan

Real Time Rating™

2.14

/ 5
Interest Rate

5.81

% p.a

Variable

Comparison Rate*

5.54

% p.a

Company
Repayment

$1,453

monthly

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

2.14

/ 5
Go to site

Cashback

Get $4,000 cashback when you refinance your home loan over $500,000. ~ Ends in about 4 hours
Product

Discounted Variable Rate Home Loan

Real Time Rating™

2.03

/ 5
Interest Rate

5.29

% p.a

Variable

Comparison Rate*

4.69

% p.a

Company
Repayment

$1,805

monthly

Features
Redraw facility
Offset Account
Borrow up to 94.99%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

2.03

/ 5
Go to site
Product

Easypay Home Loan

Real Time Rating™

2.10

/ 5
Interest Rate

4.87

% p.a

Variable

Comparison Rate*

4.87

% p.a

Company
Repayment

$1,218

monthly

Features
Redraw facility
Offset Account
Borrow up to 94.99%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

2.10

/ 5
Go to site
Product

Ultimate Home Loan Package

Real Time Rating™

3.88

/ 5
Interest Rate

2.69

% p.a

Variable

Comparison Rate*

3.07

% p.a

Company
Repayment

$1,375

monthly

Features
Redraw facility
Offset Account
Borrow up to 94.99%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

3.88

/ 5
Go to site
Product

Variable Rate Home Loan

Real Time Rating™

2.03

/ 5
Interest Rate

4.74

% p.a

Variable

Comparison Rate*

4.14

% p.a

Company
Repayment

$1,185

monthly

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

2.03

/ 5
Go to site
Product

Accelerator package home loan

Real Time Rating™

2.03

/ 5
Interest Rate

4.09

% p.a

Variable

Comparison Rate*

4.25

% p.a

Company
Repayment

$1,023

monthly

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

2.03

/ 5
Go to site
Product

myBlue Home Loan (Variable Rate) (Interest Only)

Real Time Rating™

2.05

/ 5
Interest Rate

5.19

% p.a

Variable

Comparison Rate*

4.49

% p.a

Company
Repayment

$1,298

monthly

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

2.05

/ 5
Go to site

Embed

What is a low deposit home loan?

To take out a home loan in Australia, you need to contribute a deposit to secure it, and how much you have will vary depending on your financial situation. If the deposit you make is less than 20 per cent, or even 10 per cent, of the value of the property, this is considered a low deposit home loan. 

Low deposit home loans work in exactly the same way as ‘traditional’ home loans; the only difference is you might incur higher interest rates because the bank is taking more of a risk when accepting your loan, considering that you’ve made less of an outlay and, therefore, have a bigger debt to pay back.

Typically, borrowers who secure a loan with a small deposit have to pay lenders mortgage insurance (LMI) but there are several strategies to avoid coughing up this extra cash. 

About lenders mortgage insurance: LMI is an insurance policy that covers the lender if the borrower defaults on their home loan repayments, allowing them to get their money back. It’s important to remember that even though the borrower pays the LMI, they are not covered—only the lender is. LMI premiums fluctuate depending on deposit size, loan amount and property value. Often, LMI can be added to the sum of your loan so you can make the loan repayments over time rather than all at once.

What is LVR?

LVR, meaning loan to value ratio, refers to the minimum deposit size you must have to secure a loan. The majority of home loans have a maximum LVR of 80 per cent, meaning you need to pay a 20 per cent deposit on the property; however, home loans can have a maximum insured LVR of 80 per cent or higher. If it’s a maximum insured LVR of 90 per cent or 95 per cent, then it’s a low deposit home loan. 

To put it in perspective:

  • A loan with a maximum LVR of 80 per cent and a maximum insured LVR of 80 per cent equates to a 20 per cent deposit. This is not a low deposit home loan.
  • A loan with a maximum LVR of 80 per cent and a maximum insured LVR of 90 per cent means you can get this loan with a 20 per cent deposit (and pay no LMI) or a 10 per cent deposit (and pay LMI). This is a low deposit home loan.

Can you get a home loan with a 5 per cent deposit or less?

Yes, it is possible to take out 5 per cent deposit home loans but it may be difficult to find a lender that offers them (disclaimer: the eligibility criteria for these low deposit loans will mean taking a good look into your credit history). In addition, it’s important to consider that the lower your deposit, the higher your interest is likely to be, and you will likely be on the hook for LMI as well.

The Australian Government has two low deposit home loan schemes where securing 5 per cent deposit home loans is possible for buyers (we’ll touch on this later).

What are the benefits and risks of a low deposit home loan?

There are several factors to weigh up when deciding if taking out a low deposit home loan is for you. Here’s a quick summary to help streamline your decision-making process.

Benefits of low deposit home loans:

  • You can buy and own a new home sooner—this is particularly appealing for first time buyers who are ready to stop renting and get into the property market by purchasing their own new home
  • By the time you save up a large deposit, house purchase prices may be higher than when you first started saving—making it harder to enter the property market
  • A lower deposit cuts down the time you’ll need to save up for your new home, so you can get your foot on the property ladder faster. Once you secure your home loan, you can begin building equity in your property for the future.

Risks of low deposit home loans:

  • Buying a property with a smaller deposit means you will have a larger debt overall
  • Low deposit home loans usually equate to higher interest rates and, therefore, higher monthly loan repayments
  • Borrowers who opt for a deposit less than 20 per cent will generally have to pay for LMI to cover the loan amount, which can cost thousands, unless it is a guarantor home loan.

Can you get a no deposit home loan?

No, you can’t get a home loan without a deposit—it’s considered too risky for lenders. The one loophole with this is the parental guarantee, which allows parents to guarantee a portion of your deposit for you (if they own a property themselves). There are obviously a range of factors and eligibility criteria involved in this decision, so it’s not something everyone can rely on. 

What low deposit home loan schemes does the government offer?

First Home Loan Deposit Scheme (FHLDS)

FHLDS is a low deposit home loan scheme designed to support eligible first home buyers to purchase their first home sooner. 10,000 places are available in this scheme each financial year.

To be eligible for the scheme you must:

  • Be an Australian citizen 18 years or over (permanent residents are not eligible)
  • Be a couple that is married or in a de-facto relationship
  • If a single applicant, have a taxable income of up to $125,000 per annum for the previous financial year; if a couple, this increases to $200,000
  • Have at least 5 per cent of the value of the property in genuine savings, to use as a deposit—if 20 per cent or more is saved, then the home loan amount will not be covered by the scheme
  • Repay the principal and interest of the loan for the full period of the agreement (with limited exceptions for interest-only loans, which mainly relate to construction lending)
  • Intend to be owner-occupiers of the purchased property (investment properties are not supported by FHLDS)
  • Be first home buyers who have not previously owned, or had an interest in, a property in Australia, either separately or jointly with someone else (this includes residential strata and company title properties).

Family Home Guarantee

Another low deposit loan scheme, The Family Home Guarantee, helps single parents buy a family home with a deposit as low as 2 per cent. From 1 July 2021 to 30 June 2025, 10,000 family home guarantees will be available to eligible single parents with dependants.

To be eligible for this low deposit loan scheme you must:

  • Be an Australian citizen 18 years or over (permanent residents are not eligible)
  • Be a single parent with at least one dependent living with you
  • Have earned $125,000 or less last financial year
  • Not currently own a home but you can have owned a home before
  • Have at least a 2 per cent deposit to contribute towards your property purchase.
  • You cannot use the Family Home Guarantee to buy an investment property.

How do you buy a home with a low deposit?

If you don’t have a big deposit that allows you to pick and choose any property you want, there are options available to secure a place with what you have. These include:

  • Going for something smaller: Properties with less square metres can be have a lower valuation and purchase price, so you could consider a smaller property or an apartment
  • Looking in the outer suburbs: the most expensive suburbs are often the ones closest to the city centre, so it’s worth considering options that are a bit further away to get the most bang for your buck
  • Go regional: properties located on the outskirts of cities are less expensive to invest in and you can get a lot more for your money.

Alternatives to getting a home loan if you have a low deposit

If you only have a low deposit, and it’s not conducive to getting you the outcome you desire, there are other options to consider.

Guarantor home loan

A guarantor home loan is when family members, or potentially someone close to you, ‘guarantees’ the loan (or, in other words, has the responsibility of paying back the loan if you can’t). A guarantor usually has to offer equity as security for part or all of your mortgage.

You can apply for a guarantor home loan through a mortgage broker.

Joint application

As the name suggests, a joint home loan is when you take out a loan with someone else, such as a partner, family member or friend. While a joint home loan minimises costs, there are important factors to consider including who you buy with, how many people you buy with, the structure of ownership, and how you will handle disputes.

Joint home loans can be secured through mortgage brokers.

Saving up for longer

If you don’t have enough money to make a 20 per cent deposit on your desired property, saving up for longer is always an option. 

Some tips for putting money aside for your future property include: setting a budget and savings target; using a higher interest savings account; automating your savings; investing; and reducing debts where possible.

You also have the option of taking out a personal loan. Considering that you are essentially borrowing your home deposit, a personal loan will rack you up a higher debt and set of repayments (which will tarnish your credit score if you don't pay on time). A personal loan will also influence your borrowing power for a mortgage. 

Taking out a personal loan for a home deposit is therefore a risky route to take, and it’s repercussions should be seriously considered by buyers.

Enquire about the first home owners grant

If you're a first home buyer buying property as an owner occupier, you may be able to apply for your state or territory's first home owners grant (FHOG), which may help to supplement your savings to make up your deposit.

Speaking to a broker for more detailed advice

We understand it can be tricky to get your head around low deposit home loans, and the different costs and options out there. A mortgage broker can guide you through how it all works, the different loan products and your deposit options; they can also ensure your budget and financial goals align with your chosen loan and negotiate with the lender to best use the savings you have now and will have later.

When you enquire with a mortgage broker they can:

  • Look at your personal finances and help you work out whether a low rate home loan is the best choice for your financial situation
  • Help you work out if you’re eligible for the first home loan deposit scheme (FHLDS) or the first home owners grant (FHOG)
  • Calculate the upfront costs of a low deposit home loan, including the deposit, LMI, fees, and other charges, so you know how much saving you still have to do
  • Recommend lenders that offer low deposit home loans with features and benefits that may suit your financial situation
  • Negotiate with lenders on your behalf to help you get an even better deal on loan products
  • Help you navigate the loan application process.

Getting help from a mortgage broker is a pretty safe bet as it shouldn’t cost you any extra—the  majority of mortgage brokers in Australia are paid commissions by lenders, rather than charging fees to their clients.

Repayment Calculator

Calculate what your repayments could be on your home loan.

I'd like to borrow

$

With an interest rate of

%

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.

How do I take out a low-deposit home loan?

If you want to take out a low-deposit home loan, it might be a good idea to consult a mortgage broker who can give you professional financial advice and organise the mortgage for you.

Another way to take out a low-deposit home loan is to do your own research with a comparison website like RateCity. Once you’ve identified your preferred mortgage, you can apply through RateCity or go direct to the lender.

How common are low-deposit home loans?

Low-deposit home loans aren’t as common as they once were, because they’re regarded as relatively risky and the banking regulator (APRA) is trying to reduce risk from the mortgage market.

However, if you do your research, you’ll find there is still a fairly wide selection of banks, credit unions and non-bank lenders that offers low-deposit home loans.

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).

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.

This article was reviewed by Personal Finance Editor Mark Bristow before it was published as part of RateCity's Fact Check process.

Did you find this page helpful?