Buying a home
Low Deposit and Guarantor Home Loans
Saving a 20% deposit can take years while prices keep moving. There are legitimate ways to buy sooner: the Australian Government 5% Deposit Scheme, a family guarantee, or lenders that accept smaller deposits. We show you the real cost of each path, including LMI, so you can choose with your eyes open.
Homestead is a mortgage broker, not a lender. Our service costs you nothing.
How it works
- 1
We look at your deposit, income and whether family is able and willing to help.
- 2
We compare paying LMI, using a government scheme and using a guarantor, side by side.
- 3
We match you to lenders that accept your deposit size and structure, and arrange pre-approval.
- 4
For a guarantor loan, we make sure your guarantor gets independent advice and understands their limited guarantee.
Who it suits
- Buyers with a 5% deposit or less
- First home buyers who may qualify for the 5% Deposit Scheme
- Buyers whose parents own property and are willing to guarantee part of the loan
- Buyers who would rather pay LMI than wait years to save
What lenders look at
A guide only. Each lender sets its own criteria, and they change.
- Scheme eligibility and property price caps for your location
- For guarantor loans, the guarantor's equity and their own circumstances
- Strong serviceability, as the loan will be a higher share of the price
- Genuine savings, which some lenders still require
Frequently asked questions
A family member, usually a parent, offers equity in their own property as extra security for part of your loan. It can let you borrow above 80% of the price without paying LMI. Your guarantor takes on real risk, so they should get independent legal advice before agreeing.
An Australian Government scheme that lets eligible home buyers purchase with a 5% deposit without paying LMI, through participating lenders. Property price caps apply and vary by location. We check current eligibility and caps for your postcode.
Not always. LMI is a real cost, but buying sooner can sometimes outweigh it. We show you the LMI figure, the alternatives and the trade-off so you decide.