Finance
How to Secure a Home Loan with Low Deposit
Tips and strategies for Australians looking to buy a house with a small deposit, including lender requirements and government schemes.
“First home buyers often underestimate how many local grants they can access.”
Worried about saving a 20% deposit? You're not alone. Many Australians feel locked out of the housing market due to rising prices and deposit requirements.
The good news is that several lenders now accept deposits as low as 5%, especially if you’re eligible for schemes like the First Home Guarantee (formerly known as FHLDS). This federal initiative allows approved buyers to purchase a home with just 5% down — and without paying Lender’s Mortgage Insurance (LMI).
To qualify, you typically need a solid credit history, stable income, and meet certain price thresholds depending on your city or region. Some lenders may also allow gifted deposits or contributions from family members.
Budgeting carefully, avoiding unnecessary debts, and engaging with a mortgage broker early can dramatically increase your approval chances.