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Low Deposit · No LMI · Owner-Occupier & Investor
Good income.
Small deposit.
There's a way in.
Government schemes don't suit everyone. If you earn well but haven't had time to save a full deposit, specialist low deposit lending can get you into your first home — or your next investment — without paying LMI.
Borrow up to 98% LVR
No LMI payable
Owner-occupier & investor
No guarantor required
Is this page for you?
Strong income, limited savings
You earn well but haven't had 5–20% saved in time to buy
Government schemes don't apply
You don't qualify for the 5% Deposit Scheme, or the property exceeds its price cap
Investor with limited equity
You want to buy an investment property but don't have 20% sitting in cash
Refinancing above 80% LVR
You need to access equity or consolidate debt but are above 80% LVR
Building or vacant land
These products are for established properties only — not construction
2%
Minimum deposit required
98%
Maximum LVR available
$0
LMI — replaced by a one-off lender fee
2
Use cases — owner-occupied & investment
The problem with the traditional path
The deposit gap is real — and it's growing
The standard advice is: save 20% to avoid LMI. But in Brisbane's current market, 20% of a $750,000 property is $150,000. At a savings rate of $2,000 per month, that takes over six years — while property prices keep moving.
Government schemes like the 5% Deposit Scheme are a genuine option for many buyers, but they have income limits, property price caps, and eligibility restrictions. When those schemes don't fit, specialist low deposit lending fills the gap — and it's now a structured, regulated lending category with competitive rates.
See who qualifies for government schemes →
The deposit gap
$750,000 property in Brisbane
20% deposit (standard)
$150,000
Plus ~$30,000 in purchase costs
2% deposit (specialist lender)
$15,000
Plus purchase costs & lender fee
Illustrative example. Individual costs vary by lender, LVR and loan amount.
Low deposit lending options
Two approaches — both without LMI
There are two distinct ways to buy with a small deposit without paying standard Lenders Mortgage Insurance. Each suits a slightly different situation.
Deposit Boost Loan
A separate loan covers your deposit — you still get an 80% LVR primary loan
Owner-Occupier Only · Established Properties
How it works
Two loans — deposit loan + 80% LVR home loan
Minimum deposit
As low as $0 of your own savings
Upfront fee
1.1%–2.2% of purchase price
Deposit loan term
15-year P&I variable
LMI payable
$0 — no LMI charged
- No large deposit required — strong income matters more than savings
- Buyer's agent service included to assist with property search and negotiation
- Building and pest inspection included in the fee
-
✗Owner-occupier use only — not available for investment
-
✗Established properties only — no construction or vacant land
-
✗Two loans to service simultaneously during the first 15 years
High LVR Specialist Loan
A single loan up to 98% LVR — owner-occupier or investment
Owner-Occupier & Investor · Established Properties
How it works
One loan — up to 98% LVR, P&I variable
Minimum deposit
2% of purchase price
Lender fee
One-off fee capitalised into loan
Investor eligible
Yes — first investment property
LMI payable
$0 — no LMI charged
- Single loan structure — simpler to manage than two separate loans
- Available for investment — buy a rental property with 2% deposit
- Refinance up to 98% LVR — access equity or consolidate debt
- No application, ongoing, or annual fees
-
✗Established properties only — no construction or vacant land
-
✗Property location and postcode restrictions apply — confirm eligibility
Important: We do not recommend specific lenders on this page. These are product categories available through our panel, and which option — or which lender — is appropriate for your situation depends on your income, credit profile, property type, and goals. We assess all options before making a recommendation.
Side by side
How the two options compare
A quick reference to help understand which option suits your situation before you book a call.
| Feature | Deposit Boost Loan | High LVR Specialist Loan |
|---|---|---|
| Minimum deposit | As low as $0 of own savingsDeposit loan covers the 20% required | 2% of purchase pricePlus purchase costs and lender fee |
| LMI payable | None | None |
| Upfront cost type | Low Deposit Premium (1.1%–2.2% of price)Included in the deposit loan | One-off Rate Reduction FeeCapitalised into the loan — varies by LVR |
| Loan structure | Two loans: deposit loan + primary home loan | Single loan up to 98% LVR |
| Owner-occupied | Yes | Yes |
| Investment property | Not eligible | Yes — first investment property |
| Construction / land | Not eligible | Not eligible |
| Refinancing | Limited | Yes — up to 98% LVR |
| Buyer's agent included | Yes — search, negotiation, inspection | No — arrange separately |
| Ideal applicant | First home buyer with strong income and minimal savings | Buyer or investor needing single-loan simplicity and flexibility |
Real situations
Who these options actually suit
Low deposit lending isn't one-size-fits-all. Here are four situations where these solutions genuinely change the outcome.
Scenario 1 · First home buyer
High income, no time to save
A 31-year-old nurse earning $105,000 has $18,000 saved. She doesn't qualify for the 5% Deposit Scheme because the property she wants in Chermside is above the scheme's threshold. She has strong income and an excellent credit score.
A high LVR specialist loan at 95% LVR gets her in with $22,500 deposit on a $750,000 property. The lender fee is capitalised. She starts building equity immediately instead of saving for another three years.
$750K
Property value
$22,500
Deposit needed (3%)
$0
LMI payable
Scenario 2 · Investor
Equity in PPOR, not in cash
A 38-year-old engineer owns his home in North Lakes with $120,000 equity. He wants to buy a $550,000 investment property in Logan but doesn't have $110,000 in cash. His income comfortably services both loans.
A high LVR specialist loan at 98% LVR on the investment property means he only needs $11,000 as a deposit. He uses existing savings to cover the lender fee and purchase costs rather than waiting years to accumulate a full 20% cash deposit.
$550K
Investment property
$11,000
Deposit (2%)
$0
LMI payable
Scenario 3 · Deposit boost
Almost there — but not quite 20%
A couple buying in Redcliffe has $55,000 saved but needs $140,000 for a 20% deposit on a $700,000 property. They earn $180,000 combined and are tired of watching prices move while they save.
A deposit boost loan covers the gap. Their primary home loan sits at 80% LVR. They pay a Low Deposit Premium of roughly 1.5% upfront (approximately $10,500), plus a separate 15-year deposit loan for the $85,000 shortfall — far less than LMI would have cost on a 92% LVR loan.
$700K
Property value
$55K
Own savings
$85K
Deposit loan top-up
Scenario 4 · Refinance
Access equity above 80% LVR
A homeowner in Ipswich bought at the top of the market and needs to consolidate $35,000 in personal debt. Their current LVR is 88% and mainstream lenders won't refinance above 80% without LMI.
A specialist refinance at 92% LVR consolidates the debt, reduces monthly cash flow pressure, and eliminates multiple repayments. A strategy review ensures the structure is set up correctly for their long-term position.
88%
Current LVR
$35K
Debt consolidated
$0
LMI payable
Before you apply
What you need to understand first
Low deposit lending is a legitimate and well-regulated option — but it carries trade-offs worth understanding before committing.
You'll still pay a fee
There is no free ride at high LVR. Instead of LMI, you pay a one-off lender fee — either a Low Deposit Premium or a Rate Reduction Fee. In many cases this is lower than equivalent LMI, but it still represents a real cost that should be factored into your numbers.
Higher repayments from day one
Borrowing more means repaying more. A 98% LVR loan on a $700,000 property means a $686,000 loan balance. Your monthly repayments will be higher than if you had saved a larger deposit. Serviceability must be strong to qualify.
Equity builds over time
Starting at 98% LVR means you have very little equity buffer initially. If property values fall after purchase, you could find yourself in negative equity. These products suit buyers intending to hold for the medium-to-long term.
Strong credit required
Both product types require a clean credit history and demonstrated ability to service the loan. Lenders assess this more rigorously at high LVR. Defaults, Part IXs, or recent missed payments will typically disqualify applicants.
Property restrictions apply
High LVR specialist lending has location and property type restrictions. Established properties in capital cities and major regional centres are typically eligible. High-density apartments in certain postcodes and buildings above specific sizes may be excluded. Always confirm before making an offer.
Weigh it against alternatives
Low deposit lending is one of several options. A guarantor loan, the government 5% Deposit Scheme, or waiting 12 months to save more may produce a better outcome depending on your position. We compare all options before recommending anything.
Questions
Common questions about low deposit lending
These are the questions we're asked most often before a first strategy call.
Ask a specific question →
No. Standard Lenders Mortgage Insurance (LMI) is charged by mainstream lenders when your deposit is below 20% and can add $15,000–$45,000 or more to your loan. Specialist low deposit lenders charge their own one-off fee instead — which is typically structured differently and often lower than equivalent LMI on the same loan amount. The key difference is that you are dealing with a lender specifically designed for high LVR lending rather than paying an insurance premium to underwrite a mainstream lender's risk.
Yes, via the high LVR specialist loan option. This allows eligible buyers to purchase their first investment property at up to 98% LVR without LMI. The Deposit Boost Loan is not available for investment purposes — that option is owner-occupier only. For investors, the specialist single-loan structure is the appropriate path.
There is no fixed minimum income, but high LVR lending is designed for borrowers with strong, stable income — typically PAYG employees or established self-employed applicants with at least two years of financials. Your income must comfortably service the loan at a stress-tested rate above the actual rate, which is assessed by the lender as part of a standard credit assessment. Combined household income of $120,000+ is a reasonable starting point for most purchase scenarios.
Yes. The high LVR specialist loan allows refinancing up to 98% LVR, which means homeowners sitting above 80% LVR can switch lenders and access equity — for debt consolidation, renovation funding, or an investment property deposit — without being forced to pay LMI to a mainstream lender. This is a genuine option for homeowners in markets where values have been flat or declined.
No. Both specialist low deposit options available through our panel are limited to established properties only. Construction loans, house-and-land packages, and vacant land purchases are not eligible. If you are planning to build your first home, you may be better served by the Queensland First Home Owner Grant ($30,000) and the government 5% Deposit Scheme, which do cover some new builds.
Related guides
Other pages that may help
Your situation may involve more than just the deposit. These guides cover related topics we regularly discuss with clients.
Service areas
Available across South East Queensland and major capitals
Specialist low deposit lending covers all major capital cities and key regional centres. We work with buyers across SEQ and nationally via phone and video.
Brisbane
Gold Coast
Sunshine Coast
Ipswich
Logan
Moreton Bay
Redlands
North Lakes
Caboolture
National — via video
James Sylvester
Principal Broker · MFAA Member · Credit Rep #400033 · LMG Aggregation Group
Low deposit lending is one of the fastest-evolving areas in the mortgage market right now. Products that didn't exist three years ago are now offering genuine, well-priced alternatives to LMI for buyers who earn well but haven't had time to accumulate a traditional deposit.
My role is to make sure you understand the full picture — the costs, the structure, and the trade-offs — before you commit to anything. That means comparing specialist lenders against government schemes, guarantor options, and standard lenders with LMI to find what actually produces the best outcome for your position.
Find out if low deposit lending suits your situation
Book a free 30-minute strategy call. We'll look at your income, savings, and goals, then compare all available options — government schemes, specialist lenders, guarantor, and standard LMI — and give you an honest recommendation.
No cost to you. Brokers are paid by lenders, not clients.
You’re in safe hands
15+ years mortgage experience
Accredited with 40+ lenders
Based in North Lakes, helping clients Australia-wide
Personalised, one-to-one advice
MFAA Accredited Member
Part of Australia’s largest aggregation group – LMG
Ready to discuss your options? Give us a call now.
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Your Home Loan Consultant - Mortgage Broker Brisbane - ABN 78 596 155 035. James Sylvester is a Credit Representative No. 400033 of BLSSA Pty Ltd ACN 117 651 760 (Australian Credit Licence 391237). Member of the Australian Financial Complaints Authority (AFCA member 48768).
The information provided on this site is on the understanding that it is for illustrative and discussion purposes only. Whilst all care and attention is taken in its preparation, any party seeking to rely on its content or otherwise should make their own enquiries and research to ensure its relevance to your specific personal and business requirements and circumstances. Terms, conditions, fees and charges may apply. Normal lending criteria apply. Rates subject to change. Approved applicants only.
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