You can still get a home loan with less than 20% deposit, but there’s some important information you need to know around lending restrictions for high loan-to-value ratio (LVR) lending.
What does this mean if you’ve got less than 20% deposit?
You could still get a home loan with less than 20% deposit. If you’re a first home buyer, consider applying for a First Home Loan, where you don’t need a 20% deposit. If you’re not a first home buyer, contact us to discuss your deposit and we’ll see how we can help.
What does loan-to-value (LVR) mean?
The amount you’re looking to borrow as a percentage of the property’s market value.
Want to switch your home loan to us?
If want to switch your home loan to us from another bank and the LVR is over 80%, but the loan value doesn’t increase, your application will be accepted, subject to our normal lending criteria.
If your loan has an LVR over 80%, it will attract an interest margin (applies to both variable and fixed rate loans).
Buying or building your first home?
If you’re looking to buy your first home and have less than 20% deposit, consider a First Home Loan. Or, if you’re building a new home you’ll live in, you won’t necessarily need a 20% deposit.