Low Deposit Home Loans in Perth | Loan Monster

Lenders use numerous factors to qualify a mortgage as you have to prove your ability to pay back the loan. These typically include reviewing your employment history, credit scores, financial obligations, and even future earnings potential.

Lenders also look at how much you can put down. Putting down at least 10 percent of the final purchase price not only qualifies you for better rates, but it also increases your chances of being approved.

If you do not have enough for a down deposit, does this mean you do not qualify for a mortgage? Not necessarily and this is exactly what low deposit home loans are for. They make homeownership both faster and easier for those new to the market.


Low deposit home loans in Perth are a popular option to help first time home buyers secure a mortgage, despite not having a large enough down deposit. If you are in this exact position, these types of loans offer the perfect solution.

This financial option is ideal if you are an average income earner who is purchasing or building a home for the first time. You can qualify to borrow up to 95 percent of the value of the property you are purchasing. These loans can mean the difference between being able to afford a home or making rental payments.

They make homeownership possible even if you only have 5% saved of the value of the home you want to purchase. Low deposit home loans offer benefits including increased LMI savings, manageable repayments, and no monthly account keeping fees.

What You Need

The rates you get for low deposit home loans vary depending on a number of factors. Not everyone who applies can qualify as different lenders have different requirements. However, lenders generally look at the following before they can process your application:

Genuine savings: Even if you do not have a lot saved up, having some amount saved up shows lenders that you are able to manage your finances well. It also puts your application in a more positive light when it comes time to review your application.

Employment records: Lenders look closely at employment history to determine how stable your income is. This is done primarily to assess your ability to pay back the loan. Having a stable work history strongly works in your favor as constantly moving around shows unstable employment.

Credit history: Lenders look at credit reports in more detail, especially for low deposit home loans. A history of late payments does not look good on a mortgage application. Every effort should be made to improve your credit as a low score could prevent you from borrowing or result in higher rates.

Debt: Lenders understand that you may have financial obligations including credit cards, student loans, and car payments which could be hurting your ability to save. However, having a significant amount of debt relative to your income is likely to result in higher rates.

Guarantor: A guarantor is an individual, usually one of your parents, who can guarantee your mortgage with their own. Lenders also look at all financial records of your guarantor before they can approve a low deposit home loan.

Lending companies use these as an assurance that you are committed to repaying the loan. You will also have to submit documents including papers that verify your income, previous tax returns, and information about the property you are interested in purchasing.

Before applying for a low deposit home loan, it is strongly recommended to first review your credit report. Any errors could hurt your ability to qualify, even if they were not your fault. Reviewing your report is crucial as it lets you see exactly what lenders look at.

How to Get Started With a Low Deposit Home Loan

Low deposit home loans in Perth are an attractive option for those who want to be homeowners but have little saved for a down deposit. Loan Monster can provide you with all the information you need to get started right away.

Understanding how these loans work can be complicated, especially for first time home buyers who are still new to the market. We can give you an overview of what your financing options are and help you decide which one best suits your situation.

Loan Monster is one of the top providers of home loan assistance and advice. We specialise in home loan refinance but also offer other financing products as well.

Our process is fast and efficient. Send us your enquiry using the form on this page and let us help you get answers for your home loan questions. It only takes a minute to fill out the form and you will get a reply within 24 hours, even on the weekends.

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