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No savings? No worries!

For those struggling to enter the housing market, low deposit home loans might sound too good to be true, there must be a catch, right? While yes, they have some limitations which we will cover, low deposit home loans have been designed for a specific purpose, and when used properly, the upside is that you can enter the property market, a big life goal for many Australian’s. Keep in mind that while these types of loans are great if you are struggling to save a 20% deposit, you still need to earn enough to meet your loan repayments.

At Easystart Homes we’ve helped thousands of home buyers purchase their own home through low deposit home loans and no deposit home loans. We want to help you do the same, starting with educating you on what they are and whether they are right for you!

Eligibility Calculator

Just provide a few details, and our in house finance team will crunch some numbers and assist you on your home loan journey.

We will let you know if you’re eligible and help you with the home loan application process.

What is a low deposit home loan?

As the name suggests, low deposit home loans enable potential home buyers, particularly first-timers in Western Australia, to purchase property with a smaller deposit.

Typically, these loans require a deposit as low as 2% of the property purchase price, compared to the standard 20%. This allows those who are constantly feeling priced out of the market, a shot at home ownership by minimising the need for a deposit.

Advantages of
Low Deposit Home Loans

Lower upfront costs
If living expenses prevent you from saving a decent deposit, a low deposit home loan allows you to get your foot in the door with a smaller deposit.

Get into the property market sooner
Get into the property ladder sooner and avoid being constantly priced out by the increasing house prices (while trying to save a deposit) and deposit requirements of other finance options.

Great for property investing
If you already own property, you can use its equity as a deposit for another loan. This can be particularly useful for investment properties.

Disadvantages of
Low Deposit Home Loans

You may pay Lenders Mortgage Insurance (LMI)
Unless you are using one of the government schemes available to you, if your deposit is below 20% of the property value, you’ll likely have to pay LMI.

Less choice in lenders and stricter lending requirements
While low deposit loans are meant to be accessible, they still require that you meet certain requirements set by each lender along with a lot of documentation for the approval process – we can help you with that.

You pay more interest
Borrowing more money means you’ll pay more in interest over the life of the loan. Some lenders might also charge you a higher interest rate if your deposit is small  A higher interest rate means you will be paying higher weekly/monthly repayments than a standard home loan.


Low-deposit home loan options

Now that you understand low deposit home loans, it's time to explore the variety of low deposit home loan options based on your borrowing needs and personal situation. They are Keystart home loans; Guarantor Home Loans, and government schemes like the First Home Guarantee and the Family Home Guarantee.

faq item for Keystart home loans

Keystart home loans

Keystart Home Loans is a WA government initiative designed to lower the cost of home ownership. With a Keystart home loan, you could be in your own home with as little as a 2% deposit without the added cost of a lender’s mortgage insurance, and without any monthly fees, bonus!  You can buy established or build new, and you can even put your FHOG towards it! All you need to do is check you are eligible and apply, we can help!

More on Keystart

Home ownership made easy


How to apply for a low deposit home loan:

Let us do all the hard work for you! Our in-house finance team will be able to find the right loan for your situation plus you get more choice on lenders too!


What are no deposit home loans (Zero Deposit)?

No deposit home loans – sometimes called zero deposit or no savings home loans – allow you to purchase a property with a loan for 100% of the property price. While it is totally possible to get approved for a loan without a deposit, it is still quite uncommon due to the risk the lender is taking by loaning this amount, and there are additional costs that come with a no deposit home loan such as Lenders Mortgage Insurance. Guarantor home loans are one of the only loans that lenders approve without a deposit.


Using the First Home Owners Grant for your deposit

By now you have probably heard about the FHOG, but did you know that it can be used towards the deposit on your new home? Loads of first home buyers are doing it. If you are eligible for the FHOG, lenders like Keystart will advance the grant amount from your loan account allowing you to use it towards your loan deposit. The grant can be a significant contribution of up to $10,000, and when paired with one of the low deposit home loan products we mentioned above, you may also be able to avoid the LMI premium.

What’s more is that If your home is under $430,000 (with a house and land package your land only needs to be under $430K) you may even be able eligible for stamp duty concessions, and we have loads to fit that budget!


Your low Deposit Home Loan FAQs

faq item for What is the First Home Owner Grant and how do I apply for it?

What is the First Home Owner Grant and how do I apply for it?

If you’re a first home buyer who is planning to buy or build a new house, you may be eligible to receive up to $10,000 to put towards a home loan. For more information, along with steps on how to apply, checkout our page on the WA First Home Owner Grant.