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Minimum Deposit Loan requirements

If you are intending to purchase a property with less than 10% deposit, you must be aware of the additional requirements that you must satisfy to be eligible for such a loan.


Key Requirements


Below are the key requirements for a Minimum Deposit Loan.

  • Genuine savings - You must be able to show that you have been able to save at least 5% of the property value.  A number of sources of funds can be used to count towards this test.  This includes: cash in deposits held for at least for the last 3 months; unspent income over the past 3 months; rent/board paid over the past 3 months (can only count up to 3%); equity held in other property; and deposits already paid relating to the property.

  • Exiting ability to meet repayments - Over the last 3 months, your unspent income plus rent/board must be in excess of the proposed repayments.  Ideally, you should be able to show that you can still save at least $200/month once the loan commences.

  • Capital position - You need to have low debt levels and an acceptable asset position for your age.

  • Settlements costs must not be paid for by borrowed funds (but you can use cash, cash gifts inheritance and first home buyers grants).

  • Location and property type - The property must be in a metropolitan location and not be 'high-density apartment'. - Use our LVR Location Wizard​ to determine if this applies to you.

  • Loan-to-value ratio (LVR) - The loan amount (including capitalised LMI premiums) must not exceed 98% of the purchase price.

Still not sure if you satisfy these requirements?


If are not sure if you meet these requirements, we recommend that you contact us or schedule a call.