Low deposit means that your savings don’t meet the 20% deposit requirement. Ideally, your savings would be at least 20% of the property value. For example, for a one million dollar house, you’d need $200,000 deposit. And for some, this may take a long time to save, or might be unachievable altogether. The good news is, there are still ways to qualify for a home loan if you have a deposit of less than 20%.
Over recent years, banking regulations for low deposit lending have changed, meaning more customers need to meet certain deposit requirements. We, as well as other banks, need to check that your deposit meets the Loan-to-Value Ratio (LVR), which is a measure of your loan size compared to the property value.