Getting a Home Loan with a Small Deposit

Updated: Aug 4, 2021

A 'low deposit' home loan is one that as a high Loan to Value Ratio (LVR). Usually, if your deposit is less than 20% of the property value, the loan is considered to be 'high risk'. But there are some lenders who will service your loan even if you want to borrow 80% to 90% of the property value.

If you want to qualify for a high LVR home loan - there are a few things you'll need;

Solid Income

Your income is what will form the basis of your assessment; the lender is evaluating whether you have capacity to make your mortgage repayments. A good income will likely mean you have better capacity.


Depending on your property type, and perhaps its location, you may be able to get a high LVR loan.

Good Credit

You'll have to have a clean credit history in order to get a high LVR loan; this means red flags like late credit card payments or late rental payments will not work in your favour.

Steady & Long-Term Employment

Ideally, you'll be working full time with an employment history of at least 6 months or 2 years in a similar line of work.

Genuine Savings

Most banks will want to see that you have at least 5%of the purchase price of your property in savings. This isn't an absolute requirement for all lenders if you can meet other criteria.


The amount of assets you possess should reflect your level of income and your age.

Low Debt

Another rule of thumb to go by is ensuring your debt does not exceed 5% of the purchase price of the property.

The basic idea is that you want to show the lender you will be a good borrower and make your repayments. Not all lenders will do low LVR home loans, but if you do your research and are a good candidate, you've got a shot at getting one.

Any further questions? Contact us via email or phone today!