Can I Buy a Home With a 10% Deposit in Australia?

Question: 10% deposit

Answer: A 10 percent deposit usually means you are looking to borrow around 90 percent of the property value, which is commonly called a 90 percent LVR. That can be possible with some lenders, but it usually needs stronger overall application detail because the lender is taking more risk.

At a 90 percent LVR, Lenders Mortgage Insurance is often a major cost unless a waiver, exemption or eligible government scheme applies. You may also need to allow for stamp duty, conveyancing, inspections, moving costs and lender fees, because the deposit is not the only cash required to buy.

Lenders will usually look closely at income stability, savings history, existing debts, credit conduct and whether the proposed repayments are affordable under their assessment rate. The exact outcome can vary between lenders, even for the same borrower.

A broker can help map the deposit, estimated purchase costs, possible LMI position and lender options before you apply. This is general information only and does not guarantee approval. For guidance tailored to your situation, speak with TwoFold Lending on 1300 100 019 or book an appointment.

Important: This answer is general information only and does not consider your objectives, financial situation or needs.