Low Deposit Home Loans

Get into the property market sooner with a low deposit loan, without years of saving first.

5.0

from 108 Reviews

Stop Renting Sooner Than You Think

For many Australians, the biggest hurdle to owning a home is not the repayments. It is saving a large deposit while paying rent at the same time. At Relax Home Loans, we understand how exhausting that cycle can feel, and we are here to show you that there are genuine options available that can help you get into the market sooner.

What Is a Low Deposit Loan?

A low deposit loan is a home loan that allows you to borrow with a smaller deposit than the traditional 20%. Many lenders across Australia will consider applications with as little as a 5% deposit or a 10% deposit, meaning you do not need to spend years building up a large sum before you can start building equity in your own home. At Relax Home Loans, we access home loan options from banks and lenders across Australia to find a path that suits your situation.

The loan to value ratio, or LVR, is a key concept here. It describes the size of your loan compared to the value of the property. A low deposit LVR simply means you are borrowing a higher proportion of the property's value. Lenders assess this carefully, and understanding your low deposit LVR is an important part of knowing which options may be available to you.

Who Can Benefit from a Low Deposit Home Loan?

Low deposit borrowing is not just for first home buyers. It can suit a wide range of people in different circumstances. If you are a low deposit first home buyer looking to stop renting and start owning, a low deposit home loan could be the option that changes everything. Families who want to help a loved one into the market may explore a low deposit family guarantee or guarantor low deposit arrangement, where a family member uses equity in their own property to support the application. This is sometimes called a family guarantee loan.

Those looking at a low deposit investment property may also find that a low deposit investment loan allows them to enter the property market without tying up large amounts of capital. Similarly, a low deposit owner occupied loan can suit those who simply have not had the time or income to save a full deposit while managing everyday living costs.

Relax Home Loans also works with clients who are considering a low deposit refinance, where the goal is to restructure an existing loan with a smaller equity position. Every situation is different, and our role is to help you understand your options clearly and calmly.

Understanding LMI and Government Schemes

One of the most common questions around low deposit home loans relates to Lenders Mortgage Insurance, or LMI. When your deposit is below 20%, most lenders will require you to pay LMI costs. This is an insurance policy that protects the lender, not the borrower, in the event that the loan cannot be repaid. LMI costs can add a significant amount to your loan amount, so it is important to factor this into your planning.

However, there are ways to reduce or avoid LMI. The First Home Guarantee, which is part of the broader Home Guarantee Scheme, is a government low deposit scheme that allows eligible first home buyers to purchase a property with only a 5% deposit without paying LMI. Places are limited each financial year, and eligibility criteria apply, but it is a meaningful option for those who qualify. Relax Home Loans can help you understand whether a government scheme like this aligns with your circumstances.

For some borrowers, LMI waivers may also be available through certain lenders for specific professions or loan structures. These are worth exploring as part of a broader conversation about your low deposit application.

Interest Rates and Repayments

It is worth understanding that a low deposit mortgage can sometimes come with a different interest rate compared to loans with a larger deposit. Some lenders apply low deposit interest rate adjustments based on the level of risk associated with a higher LVR. You may have the choice between a variable interest rate, which can move up or down over time, or a fixed interest rate, which locks in your rate for a set period. Both have their advantages depending on your financial situation and outlook.

Because you are borrowing a higher proportion of the property's value, your low deposit repayments may be higher than those of someone who put down a larger deposit. It is also worth considering stamp duty and other upfront costs when thinking about how much you need to have ready. Relax Home Loans will walk you through all of these considerations so you have a clear picture before making any decisions.

Low Deposit Genuine Savings

Many lenders will want to see low deposit genuine savings as part of your application. This means they want evidence that your deposit has been accumulated over time through regular saving, rather than received as a lump sum gift. Some lenders have specific requirements around this, and the rules can vary. Understanding what counts as genuine savings is an important part of preparing a strong low deposit application.

At Relax Home Loans, we work with clients in Point Cook, Victoria and right across Australia to help them understand what lenders are looking for and how to present their situation in the most straightforward way possible. Whether you are exploring a small deposit loan for the first time or looking at low deposit benefits and low deposit risks side by side, we are here to provide calm, considered guidance every step of the way.

If you have been putting off home ownership because saving a full deposit feels out of reach, a low deposit loan could open a door you did not realise was available. Reach out to Relax Home Loans today and let us help you explore what is possible.

Our Process

Step 1: Discovery Conversation
At Relax Home Loans, we begin your home loan journey with a friendly, in-depth conversation with your dedicated broker. Whether you’re buying your first home, investing, or refinancing, we listen closely to understand your goals, financial situation, and unique needs. We dive deep to get a complete picture, then start researching loan options tailored just for you. Our mission is to keep the process simple and stress-free, so we can get started as quickly as possible for you.

Step 2: Financial Assessment
With care and expertise, we thoroughly review your financial situation—your income, savings, assets, liabilities, and credit history. This helps us determine your borrowing capacity and estimate affordable repayments. We’ll also explore eligibility for benefits like interest rate discounts or first-home buyer grants. To make things clear, we’ll present a preliminary proposal, collaborating closely with you to refine it so it perfectly suits your needs.

Step 3: Strategy Meeting
Here, we craft a personalised plan. Your broker presents a handpicked selection of loan options from trusted lenders, tailored to your goals—be it a fixed-rate, variable-rate, offset, interest-only repayments, or a bridging loan. We break down the pros and cons of each approach in plain language. At Relax Home Loans, we aim to go above and beyond to ensure you feel empowered to make a decision that’s clearly in your best interest.

Step 4: Pre-Approval
Pre-approval gives you the confidence to shop for your dream home. We manage the entire process, collecting documents like pay slips, tax returns, and bank statements to secure your pre-approval. This clarifies your budget and strengthens your position in the property market, so you can move quickly without stress. With Relax Home Loans, we make this step seamless, freeing you to focus on finding the perfect property.

Step 5: Application Submission
Once you’ve selected your ideal loan, we take the reins. Our team submits your application, oversees all paperwork, and keeps you and the lender informed as we work toward formal approval. We manage every detail, resolving any questions to ensure a smooth, hassle-free experience. At Relax Home Loans, we lift the burden off your shoulders, making the application process as effortless as possible.

Step 6: Loan Approval & Settlement
Once your loan is approved, our team will be available to guide you through the final agreement, ensuring you understand rates, fees, and repayment terms. We will ensure we’re keeping an eye on everything so that it all comes together smoothly. At settlement, you’ll receive your keys, and we’ll celebrate this milestone with you. But our support doesn’t end here—Relax Home Loans is with you for the journey ahead.

Step 7: Customer Success
Our commitment to you is lifelong. Your broker remains your trusted partner, offering guidance on managing repayments, refinancing, or tapping into home equity for future investments. Our customer success team proactively advocates for you, negotiating better rates with your lender or helping you switch if better options arise. With Relax Home Loans, you get ongoing education and support, ensuring your homeownership journey stays simple and rewarding. Relax—we’ve got you covered!

Real Stories, Real Results

We can’t recommend Steve and the team at Relax Hoke Loans highly enough. From the very beginning, he was knowledgeable, responsive and incredibly supportive, guiding us through the entire home loan process and making what could have been an extremely stressful experience feel manageable. Steve kept us informed at every stage, was always available to answer our questions, and worked incredibly hard behind the scenes to get everything across the line within some very tight timeframes. We always felt that he genuinely cared about achieving the best outcome for our family. Thanks to Steve, we’re moving into a home we absolutely love. We’re incredibly grateful for everything he did to help make it happen and wouldn’t hesitate to recommend him to anyone looking for a mortgage broker. You will not be disappointed!

Angela Cromie

I couldn’t be happier with the service I received from Steve and the team at Relax Home Loans. Steve was incredibly professional, knowledgeable and supportive throughout the entire process. He made what could have been a stressful experience feel smooth and straightforward, always taking the time to explain things clearly and keeping me informed every step of the way. I’d also like to give a special mention to Danniella, who was extremely proactive, organised and responsive. Her attention to detail and ability to stay on top of everything made a real difference and gave me great confidence throughout the process. Thank you, Steve. I can’t thank you enough for the support you and your team have provided. This is the best service I have ever received from anyone while purchasing a property. I would have no hesitation in recommending Steve, Danniella and the Relax Home Loans team to anyone looking for a professional, responsive and genuinely caring mortgage broker. Thank you again for making the whole experience such a positive one!

Farhan Masud

Brianna Benito

Really happy with my experience with Relax Home Loans. They were easygoing, helpful throughout the whole process. They answered all my questions and made everything easy to understand. Would definitely recommend them

Sher Htee Kunoo

Got Questions?

What kind of interest rates can you offer?

We take look at a wide range of products available from Banks, Credit Unions & other lenders across the country. This means we can search thousands of products and make sure we're always recommending the best Home Loans for our clients.

Is it cheaper to refinance with a bank?

Working with a local mortgage broker can help you secure a better home loan with lower interest rates or minimal fees. While we can evaluate loan options from different lenders for you, refinancing with the bank means that you only have access to a limited set of options from one lender.

Are your mortgage brokers licensed and accredited?

All of our Mortgage Brokers are accredited and members of the Finance Brokers Association of Australasia. They are extremely professional and provide exceptional service across a range of lending options.

Can you only help with Home Loans?

We can help with Home and Investment Loans, Construction Loans, Car Loans, Personal Loans and much more. If you're looking to borrow to buy something, we can probably help.

Can you help First Home Buyers?

We love helping First Home Buyers! We're experts at the entire process and can help you get the right Home Loan. We're also across the various schemes to help First Home Buyers such as the First Home Owners Grant and the various stamp duty exemptions available.

Can you help with refinancing an existing Mortgage?

Of course! We believe that we can find the best interest rate for you to refinance to, whether it's a Home Loan or Investment Loan.

Why should I use a Mortgage Broker?

Mortgage Brokers are there to help you find the right loan whether it be from the major banks, smaller lenders or other sources. We have a broad range of products (more than any single lender can offer) which means we can do all the legwork to find the right loan for you.