Can You Really Buy a House with Just a 5% Deposit? (Spoiler: Yes — and Here’s How)

You’ve probably heard it a hundred times:
“You need a 20% deposit to buy a house.”

Cool. And we need a million dollars, a better tax system, and to somehow afford coffee in Melbourne. ☕💸

Let’s be real — saving 20% of a house price in Melbourne is a huge ask.
So... can you actually buy a place with just 5%?

Short answer: Yes.
Longer answer: Absolutely — if you know what you’re doing (and work with a broker who knows the game).

Let’s break it down.

First Things First: Is a 5% Deposit Even Legal?

Yes — lenders in Australia can offer loans with as little as 5% deposit to eligible buyers.

That means if you’re eyeing off a $600k home, you could potentially get in with just $30k saved.

That’s a big difference from trying to scrape together $120k.

So What’s the Catch?

Great question.

Here’s what you need to know about low deposit home loans:

1. You Might Need to Pay LMI (Lenders Mortgage Insurance)

If your deposit is less than 20%, the bank usually charges Lenders Mortgage Insurance (LMI).

This protects them, not you — but it’s the trade-off for letting you buy sooner.

LMI can be expensive (we’re talking thousands), but in some cases, we can help you reduce or avoid it entirely.

2. You’ll Need to Show You're Solid

With a lower deposit, lenders want to know the rest of your finances are in good shape.

That means:

• Consistent income

• Minimal debts

• Good credit history

• Solid savings pattern

Don’t stress — at Nude Home Loans, we help you prep everything to make sure your application looks schmick.

First Home Buyer? Even Better.

The Australian Government has stepped in with some pretty decent help for first-timers.

Here’s a couple of the low-deposit friendly schemes available right now:

🏠 First Home Guarantee (FHBG)

• Buy with just 5% deposit

• No LMI

• Available on certain properties under a price cap

We’re across all the fine print — and we’ll check if you’re eligible when we chat.

💰 First Home Super Saver Scheme

• Use your super to boost your deposit savings (up to $50k)

• Great if you’re short on cash but long on super

Why Go Low Deposit?

Because life doesn’t wait for a 20% deposit.

People get married. Have kids. Rent goes up. The house you love sells to someone else.

If you can buy safely now with 5%, we reckon it’s worth exploring.

You could:

• Get into the market sooner

• Avoid years of rising house prices while you save

• Stop paying someone else’s mortgage (aka rent)

What About Interest Rates?

Low deposit loans sometimes come with slightly higher rates.

But here’s the thing: We can still find you a great deal.

At Nude, we’re not stuck with one lender.
We compare 30+ banks and lenders to find the best option for your situation — not the one that makes us the most commission (we don’t play that game).

Real Talk: Should You Buy with 5%?

Let’s put it this way:

✅ If you’re financially stable
✅ If you’re ready to stop renting
✅ If you have a 5% deposit saved (or close)

…then yeah, it might be exactly the move you need.

But we’ll always give you the real advice — even if that means saying, “Hey, give it 3 more months and you’ll be in a better position.”

No pressure. No BS.

Why Work With a Mortgage Broker Near You?

Because low deposit loans aren’t “one size fits all.”

Every lender has different rules, different products, and different eligibility quirks.
We know them all — and we know how to find the best match for you.

Plus, as a first home buyer, you’ll have questions. (So many questions.)
And we’ll be right here with answers, calm vibes, and maybe even a high five when you get those keys.

TL;DR – Can You Buy With 5% Deposit?

Yes. And we’ve helped heaps of Nude clients do it.

You don’t need a rich uncle. You don’t need a miracle.
You just need the right strategy — and a broker who’s in your corner.

Let’s See What’s Possible

At Nude Home Loans, we help first home buyers get into the market sooner — with smart, low deposit strategies that actually work.

👉 [Book a free chat with us here]
We'll let you know exactly where you stand, what’s possible, and how to get there.

It’s free, friendly, and zero pressure. Just good advice.