• 95% Home Loans No Genuine Savings
  • Can I get a Home loan with low or no genuine savings?
  • What banks will lend with a 5% deposit?
  • Can I get a 90% non-genuine savings home loan?
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5% deposit home loan


Five Steps to Getting a 5% Deposit Home Loan


Are you finding it challenging to obtain the right home loan? You’re not alone. Saving up for a deposit can be a huge obstacle, what with the array of everyday expenses, and the current cost of rental housing. Fortunately, with products such as a 5% deposit home loan, you can realise your dream of home ownership more easily than you might think.


Can I still borrow if I don’t satisfy the genuine savings rule?


The genuine savings rule means you need to have the deposit for a house saved up for at least three months before your mortgage application, whether you are applying for a 5% deposit home loan, or a 10% or 20% home loan.


Allowable sources include:


  •  A term deposit. A term deposit with the total or a part of the deposit amount held for at least three months before the date of application.
  • Shares. You might have the funds held in shares for at least three months before the application date.
  • Equity. Equity in a property, such as a commercial or residential property, might also be allowable.
  • A cash deposit. You might have the funds in an everyday account that has been left untouched for the past three months.


Along with saving up for the initial deposit, the genuine savings rule is one of the key obstacles in the way of people who want to buy their own home. The great news is that lenders are loosening their genuine savings requirements, which means new homebuyers can find it easier to come up with a deposit than before.


Some lenders are happy to approve a 5% deposit home loan even if you do not fully satisfy the non-genuine savings rule. Some examples of sources you can use for a deposit now include:


  • Gifts. Cash gifts from family or friends can make up part of your deposit funds.
  • Inheritance. If you have recently inherited property or money, the lender might be happy to approve your application even if your deposit is partly or wholly sourced from inherited assets or funds.
  • Personal loans. Some lenders are happy to approve funds sourced from a personal loan as part of your total deposit.
  • Asset sales. Recent asset sales, such as the sale of cars and boats, can make up your deposit.


What are the lending criteria for a 5% deposit home loan?


Most lenders will have basic lending criteria, such as requiring that the applicant not be on probation at work at the time of application. Other common lending conditions include a clean credit history, steady employment, and good financial and tax records for the self-employed. You will usually also need to buy in your own name, rather than through a company or trust.


How much do I need saved up?


Buying with a 5% deposit home loan means you probably need far less cash than you realise. For example, taking into account the effect of government grants for new home owners, you might only need $7,500 to purchase a $250,000 property. Coupled with a waiver of the genuine savings requirement, you might find that your goal of home ownership can be achieved after all.


Getting started with your application


If you are looking for a 5% deposit home loan, get started today by contacting ABC Mortgages directly for a chat. We will take you through the eligibility requirements and help you find a loan that is right for you.