The more you need to borrow the higher the risk for the lender and therefore the more difficult it will be to get your loan approved. If you can prove that you have been saving towards your deposit steadily and that you will have sufficient surplus income to pay for the loan it will be easier to get the loan approved. But if you don’t have any deposit or the money for your deposit comes from somewhere other than your own savings then the lender might have some restrictions. These loans are normally called no real savings loans.
Borrowing 100% of the purchase price with no deposit is only available if you have a guarantor that can support your application. 100% home loans without a guarantor are not available from any lender in Australia.
Borrowing more than 95% of the purchase price might be available with some lenders, however your interest rates and lenders mortgage insurance rates will most probably be higher. We have calculated your insurance premium using the 95% loan-to-value-ratio rate for your loan bracket, please consider that the rates may be higher.
For self-employed borrowers the thresholds are lower, borrowing more than 80% of the purchase price might be available with few lenders at higher interest rates and higher Lenders Mortgage Insurance rates. We have calculated your insurance premium using the 80% loan-to-value-ratio rate for your loan bracket, please consider that the rates may be higher. Premium rates used in the calculation are only sample rates and may vary from lender to lender and in the future, we will keep monitoring and updating rates and alert you of any changes that could directly impact your purchase. For more information on lenders mortgage insurance click here.
Some lenders will grant you a 90%-95% loan with no genuine savings if your deposit is coming from one of these sources:
Getting a 95% loan without real savings will still be very difficult and you will need to meet the following conditions:
You cannot apply for no real savings loans for the following:
This page was last updated on 19 September 2019.