A smaller deposit does not have to mean fewer questions answered
We help eligible buyers compare low-deposit options, understand the costs and decide whether buying sooner fits their budget.
- Estimate the minimum funds required
- Compare LMI, guarantee and government-supported options
- Check whether gifts or rent history may be accepted
- Understand repayments on a larger loan
5%Deposit Scheme
LMIReview
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Can you buy a home with a low deposit?
Some borrowers can buy with less than a 20% deposit, but the best option depends on eligibility, property type, savings history and ability to afford repayments and purchase costs.
Buying sooner can reduce the time spent saving, while waiting may build a larger buffer and reduce the loan. Compare both scenarios rather than focusing only on the minimum deposit.
A family guarantee home loan may be one way to address a deposit gap, while Lenders Mortgage Insurance may allow an eligible borrower to proceed with less than a 20 percent deposit. Once the deposit pathway is clearer, home loan pre approval can help establish a more realistic buying range.
How a mortgage broker helps with low deposit home loans
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Work out your available funds
We separate your deposit from your purchase costs and help you keep an appropriate savings buffer.
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Review your borrowing position
We assess your income, debts, credit conduct, likely repayments and the types of property a lender may accept.
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Explore ways to bridge your deposit gap
We explain eligible government support, family guarantees, gifted funds and Lenders Mortgage Insurance.
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Compare your total costs
We compare suitable loans, repayments, fees, LMI and the effect of borrowing with a smaller deposit.
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Manage your application
We help you select an appropriate pathway, prepare your evidence and manage the lender process through to settlement.
What home loan clients have to say
Real stories from people we helped make clearer, more confident loan decisions.
Low deposit home loan FAQs
Potentially. The minimum depends on the lender, property, purchase costs and whether LMI, a family guarantee or government support is used.
Some lenders accept a limited family guarantee. The guarantor's property may be at risk if the borrower defaults, so independent legal and financial advice is strongly recommended.
LMI is often required above a lender's preferred loan-to-value ratio, but it may be avoided through a larger deposit, eligible government scheme, family guarantee or certain professional lending policies.
Calculate the deposit together with government charges, legal work, inspections, loan costs and a safety buffer. A quoted percentage alone does not show the full amount needed for settlement.
Some eligible buyers may have pathways starting from a small percentage of the purchase price, but lender and scheme criteria differ. The lowest possible deposit is not always the safest budget.
Eligible buyers under the Australian Government 5% Deposit Scheme can avoid LMI because the government guarantees part of the loan to the participating lender. All scheme and lender requirements still apply.
The former First Home Guarantee now sits under the Australian Government 5% Deposit Scheme. Ask about the current rules and property price cap for the location where you plan to buy.
Possibly, through a genuine gift, family guarantee or another documented arrangement. The lender must understand whether the funds are repayable and may require evidence of their source.
Compare the benefit of a larger deposit and lower loan against property prices, rent, time and your readiness for repayments and ownership costs. Keep a buffer whichever path you choose.