• 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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What banks will lend with a 5% deposit?


Finding 5% Deposit Home Loan Lenders


Are you a renter who dreams about owning your own home, but you find it hard to save up a large deposit? With rental payments, groceries, clothing costs, car payments, and other living expenses, saving up for a deposit can seem like an impossible goal – especially as many lenders require as much as a 10% or 20% deposit for a home loan. Fortunately, it’s possible to find 5% deposit home loan lenders who are happy to lend as much as 95% of your purchase price.


How much do I need to have saved up for a deposit?


Five per cent is usually the minimum amount required for a deposit, but some lenders are willing to lend you the cost of mortgage insurance, which means you can borrow up to 97% of the total purchase cost.


It is also useful to know that some 5% deposit home loan lenders are willing to waive the genuine savings requirement. The genuine savings requirement means the borrower is required to have the deposit funds held (or saved up) for a minimum period of three months in a separate account. With this criteria waived, you might be able to use funds held in shares, cash savings, and/or a term deposit for at least three months instead. You can also source your deposit from the sale of an asset such as a car, a recent gift of cash from a family member, the First Home Owners Grant, and even your tax refund.


This can make it much easier for you to buy your new home. By borrowing from 5% deposit home loan lenders, you might be able to buy a $250,000 property with as little as $7,500 cash input, or a $300,000 property with just $10,000 cash down.


What are the terms and conditions?


As with any home loan, 5% deposit home loan lenders will have their own terms and conditions that vary depending on the product. In addition to having at least 5% saved up for the deposit, you will need to show you have a steady employment history. You should also have a good credit history, with no bad debts or defaults.


Lenders may impose other terms and conditions. For example, lenders might refuse to approve your loan if you are on probation at work (if you have just started a new job) or if you are self-employed, and are unable to prove your income for the past two or three years. Lenders will also usually require that you buy as a person rather than through a trust or company structure.


Options and features


Many 5% deposit home loan lenders are able to offer you a variable or a fixed-rate home loan to match your preferences. As with any other home loan, you can specify other options such as a redraw facility or offset account, to maximise the utility from your home loan.




How do I find 5% deposit home loan lenders?


If you have been looking for a 5% deposit home loan, look no further. You can find out more about getting a 5% deposit mortgage by contacting ABC Mortgages today. We will start the process with a free, no-obligation phone consultation to determine your eligibility for the right home loan, and help you find the right lender for your needs.