For many Australians, the biggest hurdle to buying property isn’t the loan—it’s the deposit. In a world of rising property prices, saving a 20% deposit can feel nearly impossible. That’s where low deposit loans come in, offering a smarter way to step into the property market without waiting for years. At AFM Group, we believe homeownership should be within reach, and we’re here to help you make it happen.
What Are Low Deposit Loans?
Low deposit loans are exactly what they sound like—home loans that require a smaller upfront deposit, typically as low as 5% of the property’s value. While traditional lenders often ask for a 20% deposit to avoid Lenders Mortgage Insurance (LMI), low deposit loans give more Australians the chance to get started sooner.
Who Can Benefit from a Low Deposit Loan?
- First-home buyers: Struggling to save a big deposit while paying rent? A low deposit loan can be your first step toward homeownership.
- Young professionals: With solid incomes but limited savings, these loans offer a way into the market without delay.
- Families: Ready to upsize but tied up in your current property? A smaller deposit requirement helps bridge the gap.
- Regional buyers: Properties in rural areas often qualify for even more flexible deposit structures through certain government schemes.
A Human-Centred Lending Approach
At AFM Group, we understand that behind every loan application is a story—a couple looking to start a family, a single parent seeking stability, a young investor trying to build wealth. We don’t just crunch numbers. We listen. Then we guide you toward lenders who offer realistic, achievable solutions that align with your life.
Case Study: Emma’s First Step
Emma, a 29-year-old teacher from Adelaide, had been saving diligently but still fell short of the traditional 20% deposit. She reached out to AFM Group after being discouraged by her bank. We reviewed her financial profile and secured her a low deposit loan at a competitive rate—with a lender that understood her goals. Today, Emma owns her first apartment and is building equity with every payment.
Are There Trade-Offs?
Yes, low deposit loans sometimes come with extra conditions:
- Lenders Mortgage Insurance (LMI): This protects the lender but adds to your costs. In some cases, this can be capitalised into the loan.
- Higher interest rates: Some lenders may charge slightly more due to the increased risk.
That’s why expert advice matters—we help you weigh the pros and cons and find the most affordable path forward.
How AFM Group Helps
- We assess your eligibility and borrowing power
- Match you with suitable lenders for low deposit home loans
- Navigate government grants and First Home Loan Deposit Scheme options
- Manage your application from start to finish
Final Thoughts
Low deposit loans offer a lifeline to people who are ready to buy but don’t want to wait years to save a large deposit. At AFM Group, we believe in opening doors—literally and financially. With the right guidance and support, your homeownership dreams are closer than you think. Ready to get started? Let’s find your way in.
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