Best lenders for low deposit home loans

The three routes to a low deposit

• First Home Guarantee: 5% deposit with no LMI, government-guaranteed, through participating lenders — subject to property price caps by region.
• LMI-paid: 5–15% deposit with lenders mortgage insurance capitalised into the loan. Available broadly but priced steeply below 10% deposit.
• Guarantor: a family member's equity covers the shortfall so you effectively borrow at 80% LVR and pay no LMI at all.

What separates lenders at 90–95% LVR

• Genuine savings: most want 5% saved over three months; some accept rent history or a gift as substitute, others don't.
• Postcode and security restrictions: high-density apartment postcodes are often capped at 80% LVR regardless of your profile.
• LMI insurer: lenders with in-house LMI (rather than an external insurer) can approve files an external insurer would refuse.
• Professional waivers: medical, legal, accounting and some other occupations can access 90% LVR with no LMI at selected lenders.

Do the maths before you chase the smallest deposit

LMI on a 5% deposit can run to tens of thousands and is usually added to the loan, so you pay interest on it for the life of the mortgage. Sometimes waiting six months to reach 10% saves more than the market moves against you — and sometimes it doesn't.

Run both scenarios through our LMI calculator and the property purchase calculator before you decide.

A note on rates

Rates and policies change constantly, and every lender prices to its own funding costs and risk appetite. Nothing on this page is a rate quote — it's a guide to how these lender types differ so you know where to look.