A New 10% Deposit Home Loan (with no LMI) Is Here — And It Could Help You Get Into the Market Sooner
Getting into the property market has become harder for many home buyers, especially with rising prices and the challenge of saving a 20% deposit. But a new home-loan option from a major bank is making headlines — allowing eligible buyers to purchase with just a 10% deposit and no Lenders Mortgage Insurance (LMI).
Here’s what this could mean for you if you’re trying to buy your first home, upgrade, or invest.
What the bank is offering
A major Australian bank has introduced a home loan where eligible buyers can:
Buy with as little as 10% deposit
Borrow up to 90% LVR
Pay no Lenders Mortgage Insurance (LMI)
Apply as an owner-occupier or investor
This is significant because LMI alone can add tens of thousands to the upfront cost of buying property.
Why this matters right now
With home prices continuing to climb, the time required to save a 20% deposit has blown out for many buyers. A 10% deposit option:
Lowers the upfront savings needed
Allows you to enter the market sooner
Reduces the risk of being priced out while you’re still saving
Who this could suit
This type of product may be ideal for:
First-home buyers who have solid savings but can’t reach 20%
Upgraders who need flexibility with their equity
Rentvestors wanting to buy in affordable growth suburbs
Investors looking to leverage with a lower deposit
What to keep in mind
Even with no LMI:
Interest rates on 90% LVR loans are often slightly higher
You still need to pass servicing and eligibility checks
The right suburb choice is important if entering with a smaller deposit
You may be able to refinance to a sharper rate once you reach <80% LVR
Every situation is unique — this isn’t a one-size-fits-all solution.
This new 10% deposit, no-LMI option could open the door sooner for many Australians — but only if it’s the right fit. If you're considering buying, upgrading or investing, let’s crunch the numbers and map out what’s possible for you.
