Can I buy a home in Australia with a 5% deposit?

Yes. Many Australian lenders allow eligible borrowers to buy with as little as a 5% deposit, especially first-home buyers using government schemes such as the First Home Guarantee. However, LMI or scheme eligibility rules apply and not all banks treat low deposits the same way.

What is the difference between a 5% and 10% deposit home loan?

A 5% deposit home loan lets buyers enter the market sooner but typically involves higher LMI and stricter assessment. A 10% deposit usually results in lower LMI costs, better pricing and stronger approval chances, although 20% deposit remains the benchmark for no LMI in most cases.

Which lenders are best for low-deposit home loans in Australia?

Different lenders specialise in different borrower types. Major banks like CBA, NAB, ANZ and Westpac, as well as non-major banks and mutuals, all offer low-deposit options, but their borrowing power, LMI premiums and policy rules vary widely. The best lender depends on your income, deposit size, credit history and location.

How does Matcheroo AI help low-deposit borrowers?

Matcheroo AI compares multiple lenders based on your income, savings, debts, credit score, deposit size and suburb. It helps identify which banks will approve a 5% or 10% deposit application, what your true borrowing power is, and which options minimise LMI and interest costs.

Top 10 Low-Deposit Home Loans in Australia (5% & 10% Options)

Getting into the property market in Australia no longer requires a massive deposit. In 2025, more buyers than ever — especially first-home buyers — are entering the market with 5% deposits, 10% deposits or using government schemes to buy with no LMI and significantly lower upfront costs.

Whether you’re in Sydney, Melbourne, Brisbane, Perth, Adelaide or regional Australia, several lenders offer competitive low-deposit home loans that help buyers enter the market faster, without waiting years to save 20%.

This guide breaks down the Top 10 low-deposit home loan options, including the lenders with the best rates, approval criteria, borrowing power and LMI rules — plus how Matcheroo AI identifies the best loan YOU qualify for.

1. CBA (Commonwealth Bank) – Best Overall 5% Deposit Option

CBA consistently provides the strongest pathway for 5–10% deposit buyers due to:

High borrowing power
Strong approval confidence
Good treatment of casual and variable income
Participation in government schemes

Ideal for first-home buyers needing maximum borrowing capacity.

2. NAB – Best 5% Deposit Option for Self-Employed

NAB is one of the few major banks offering competitive low-deposit lending for:

Self-employed
Contractors
ABN earners
Gig-economy workers (case-by-case)

Strong servicing + consistent approvals = powerful for non-traditional borrowers.

3. Westpac – Best for Families & Guarantor Loans

Low deposit + strong treatment of dependants + flexible living expenses.

Excellent for:

Family buyers
Guarantor loans
Multi-income households

4. ANZ – Best Pricing for 10% Deposit Buyers

ANZ often has sharp rate tiers for borrowers with:

10% deposit
Strong credit scores
PAYG income
Low overall risk

Great for refinancers under 90% LVR too.

5. ING – Best Non-Major Bank Option

ING frequently offers strong approval outcomes for low-deposit borrowers with:

Clean bank statements
Strong savings history
PAYG income

A great alternative to the Big 4.

6. Bankwest – WA’s Best 5–10% Deposit Lender

Perfect for Perth + WA buyers.

Strong for:

First-home buyers
Couples
Dual-income households
New builds

7. Macquarie Bank – Best for High-Income Borrowers with 10% Deposit

Macquarie offers:

Strong digital servicing
Sharp interest rates
Excellent experience for tech-savvy buyers

Better for borrowers with clean credit + strong incomes.

8. St.George / Bank of Melbourne / BankSA – Best 5% Options in NSW, VIC, SA

These three operate under Westpac Group but offer:

Flexible policy
Attractive LMI options
Strong first-home buyer support

9. Great Southern Bank – Best 5% Deposit Loans with No Genuine Savings

Unique features:

Accepts “non-genuine” savings
Strong FHB policies
Low LMI premiums

Ideal for renters transitioning into ownership.

10. Government Schemes (5% With No LMI)

The First Home Guarantee allows eligible buyers to:

Buy with 5% deposit
Pay no LMI
Access major lenders (CBA, NAB, etc.)

This is the most powerful low-deposit pathway in the country.

Who Benefits Most From 5% & 10% Deposit Home Loans?

✔ First-home buyers

✔ Renters with strong incomes but low savings

✔ Young professionals in Sydney & Melbourne

✔ Dual-income couples

✔ Buyers using government guarantees

✔ Self-employed borrowers leveraging NAB or Macquarie

Low-deposit loans let buyers enter the market years earlier.

What Affects Your Approval With a Low Deposit?

1. Credit Score

Higher = lower LMI + stronger approval.

2. Employment Type

PAYG is easiest. Self-employed requires correct lender matching.

3. Suburb & Property Type

High-density units, studios and certain postcodes may reduce borrowing power.

4. Borrowing Power Calculator Differences

Two banks can differ by $90,000–$200,000+ for the same borrower.

5. LMI (Lenders Mortgage Insurance)

Premiums vary drastically between banks — Matcheroo AI identifies the cheapest option.

How Matcheroo AI Helps Low-Deposit Buyers

Matcheroo AI:

Compares borrowing power across lenders
Identifies which banks offer 5% & 10% LVR loans
Analyses LMI costs from each lender
Finds lenders who accept your income type
Flags postcodes with restrictions
Matches you to lenders offering higher borrowing power and lower upfront costs

Most low-deposit buyers discover they can borrow significantly more by choosing the correct bank.

Summary: Top 10 Low-Deposit Home Loans in Australia

Australia’s best low-deposit home loans depend on:

Your income
Your credit score
Your deposit size (5% vs 10%)
Your suburb or postcode
The property type
Your long-term goals

Matcheroo AI ensures buyers get the best possible loan, with the highest borrowing power and lowest LMI, tailored to their unique profile.

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