Low deposit home loans
Stop saving for a 20% deposit you don't need.
You've been told to save 20%. For a lot of buyers, you don't have to. There are a few genuine routes into a home with a 5% deposit, and we match you to the one that fits.
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The 20% myth
The deposit isn't really the problem. Knowing your options is.
A 20% deposit is the default advice because it avoids Lenders Mortgage Insurance. But saving it can take years, and for a lot of buyers it isn't necessary. Between the government's 5% scheme, a family guarantor, professional waivers, and simply paying the LMI, there's usually more than one way in. The trick is knowing which one you qualify for.
What you've been told
- You need a 20% deposit
- A low deposit always means expensive LMI
- Save for years, then buy
- A grant or a gift counts as your deposit
- One bank said no, so it isn't possible
What's actually true
- A 5% deposit is enough for many buyers
- LMI is often avoidable, and sometimes worth paying
- The right route can get you in this year
- Most lenders want genuine savings, not just a lump sum
- Another lender or route may be a clear yes
Four ways in
Four routes to a low deposit. One of them may fit you.
The 5% Deposit Scheme
The Australian Government 5% Deposit Scheme, until late 2025 the First Home Guarantee, lets you buy with a 5% deposit and pay no LMI, because the government guarantees the gap. Since October 2025 it's far bigger: no income test and no cap on places. You qualify as a first-home buyer, or if you haven't owned property in Australia in the last 10 years. Property price caps apply by city.
A family member's equity
A parent or close family member uses equity in their own home as extra security, covering the gap to 20% so you avoid LMI, without handing over cash or going on your loan. Once your loan drops to around 80% of the value, they can apply to come off. It's powerful, but it's a real commitment for them: if things go wrong, the guaranteed amount is theirs to cover.
How guarantor loans work →Borrow up to 95%
If a scheme or guarantor isn't for you, you can still buy with as little as a 5% deposit and pay Lenders Mortgage Insurance. It typically runs 1 to 5% of the loan, often into five figures, and it's usually added to your loan, so you pay interest on it over time. Sometimes it's the cleanest, fastest way in and the maths stacks up.
Waived for many professions
Some lenders waive LMI for professionals in stable, higher-earning fields. Eligible doctors reach 95%, while law, accounting, finance and engineering sit a tier below at up to 90%. It's a wider net than most people assume: engineers and accountants are on lender lists, not just doctors and lawyers. If your occupation qualifies, it saves the LMI cost without a scheme or a guarantor. The lists and limits vary by lender.
Home loans for professionals →Where we come in
A bank offers one route. We compare all of them.
Each route has its own fine print: scheme eligibility and price caps, what counts as genuine savings, which lenders waive LMI and by how much, whether a guarantor stacks up. We weigh all of it across 30+ lenders and the schemes, then match you to the route that fits your situation.
What buyers say
Bought sooner, with less down.
Approved without the bigger deposit
"…we were knocked back by our bank when it came to getting a construction loan… we were virtually told that what we wanted to do was impossible (unless we came up with a much higher deposit)… my broker not only found us a loan, but at a much lower rate… We are now living in our beautiful home."
In with a 5% deposit
"We were renting and 5% was the maximum we could come up with… My broker immediately explained to us that we could get a loan with only 5% deposit. Within a few days we had all the information we required… he had our full approval within weeks."
Real customer reviews from MAP Home Loans, the mortgage brokerage behind Approov.
Good to know
Schemes have rules
Eligibility and caps apply
The 5% scheme has price caps by city and eligibility criteria, and places, while now uncapped, still run through participating lenders. We check where you stand before you count on it.
Honest about risk
A guarantor is a real commitment
If you go the guarantor route, we make sure everyone understands it, including what your guarantor is on the hook for.
In your corner
Free to you, and on your side
We're paid by lenders for introducing loans. Under the Best Interests Duty we're legally bound to recommend what's right for you, not what pays us most.
Common questions
Low deposit home loans, answered.
- Can I buy a house with a $10,000 deposit?
- Possibly, on a lower-priced property or with a guarantor or the 5% scheme doing some of the lifting. On its own, $10,000 is about 5% of a $200,000 loan, so for most homes you'd lean on a scheme or a guarantor to bridge the gap. We'll model it on your real numbers.
- How much deposit do I need for a $500,000 property?
- A 5% deposit is $25,000, and with the government scheme or a guarantor you may avoid LMI on top of it. Without either, budget for LMI as well, and remember costs like stamp duty vary by state.
- Can you buy a house with no deposit in Australia?
- Not really with nothing at all. But a guarantor can mean no cash deposit of your own, and some buyers get there using family equity. A true zero-deposit loan is rare and very situation-specific.
- What is the 2% deposit scheme?
- Two different things now, which is worth untangling. The single parent stream of the 5% Deposit Scheme, until late 2025 the Family Home Guarantee, lets eligible single parents and legal guardians buy with a 2% deposit and no LMI. Help to Buy is a separate scheme, also from a 2% deposit, where the government takes an equity share in the home instead. Worth knowing: the single parent stream doesn't require you to be a first-home buyer, so a parent who owned a home in a past relationship can still qualify.
- Do I need genuine savings for a low deposit loan?
- Usually yes. Most lenders want your deposit to be "genuine savings", money you've held or saved over about three months, not only a recent gift or grant. There are ways around it, and we'll tell you where you stand.
- Is it better to pay LMI or wait and save 20%?
- It depends on your rent, the market, and how fast you can save. Paying LMI to buy now can beat years of saving while prices move. We'll run both so you can see the trade-off in your own numbers.
Book a Free Strategy Session to plan your purchase.
A licensed broker looks at your numbers and maps the low-deposit route that gets you in sooner. Nothing to prepare, no obligation.
15 to 30 minutes · no obligation · 30+ lenders