10% Deposit Home Loan: How to Buy a House With 10 Percent Down
Everything you need to know about buying a home with a 10% deposit in Australia — LMI costs, how to avoid them, interest rates, and which lenders offer the best 90% LVR loans.
A 10% deposit is one of the most common entry points for Australian home buyers. It sits in a practical middle ground — large enough to access competitive interest rates from most lenders, but small enough that you don’t need to spend years saving to reach 20%.
The main cost to navigate at this deposit level is Lenders Mortgage Insurance, which at 90% LVR can add $10,000 to $20,000+ to your purchase. But there are several ways to eliminate that cost entirely.
How Much Do You Need for a 10% Deposit?
Your required deposit scales with the property price:
| Property Price | 10% Deposit | Loan Amount (90% LVR) |
|---|---|---|
| $500,000 | $50,000 | $450,000 |
| $600,000 | $60,000 | $540,000 |
| $750,000 | $75,000 | $675,000 |
| $800,000 | $80,000 | $720,000 |
| $1,000,000 | $100,000 | $900,000 |
On top of the deposit, budget for stamp duty (varies by state — first home buyer concessions may apply), conveyancing fees ($1,500–$3,000), building and pest inspections ($500–$800), and loan application fees ($0–$600).
In total, expect to need approximately 12–14% of the property value in available funds when buying with a 10% deposit.
LMI Costs at 10% Deposit (90% LVR)
At 90% LVR, Lenders Mortgage Insurance (LMI) is charged by most lenders. The premium depends on the loan amount and the LMI provider (Helia, QBE, or Arch).
Typical LMI costs at 90% LVR for owner-occupied, principal and interest loans:
| Property Price | Loan Amount | Estimated LMI |
|---|---|---|
| $500,000 | $450,000 | ~$7,500 |
| $600,000 | $540,000 | ~$10,400 |
| $750,000 | $675,000 | ~$14,000 |
| $800,000 | $720,000 | ~$15,200 |
| $1,000,000 | $900,000 | ~$20,000 |
Investment property LMI is typically 15–25% higher than these figures. You can estimate your exact LMI cost here.
These premiums can be paid upfront at settlement or capitalised (added to the loan). Capitalising LMI means you pay interest on the premium for the life of the loan — turning a $14,000 LMI cost into approximately $22,000+ over 30 years.
How to Avoid LMI With a 10% Deposit
Paying $10,000–$20,000 in LMI is not a given. Several pathways eliminate it entirely at 90% LVR.
Professional LMI Waivers
The most direct path for eligible borrowers. Lenders waive LMI for certain professions at 90% LVR and above, saving you the full premium with no trade-offs — no property price caps, no place limits, and no requirement to be a first home buyer.
Professions that qualify include:
- Medical professionals — doctors, dentists, optometrists, veterinarians, pharmacists
- Legal professionals — lawyers, barristers, solicitors
- Finance professionals — accountants (CPA/CA), actuaries, financial planners
- Engineers — all recognised disciplines
- IT professionals — above income thresholds
- Nurses and midwives — AHPRA registered
- Teachers — registered with a state teaching authority
- Others — paramedics, police officers, public servants
Most lenders require minimum individual or household income of $150,000, though some professions (particularly medical) qualify at lower thresholds.
A 10% deposit + professional waiver is the sweet spot for many buyers: you avoid LMI entirely, access competitive interest rates (better than 95% LVR), and keep the remaining savings for stamp duty, moving costs, or a buffer.
Check your eligibility in 60 seconds — no credit check required.
First Home Guarantee (FHBG)
First home buyers can use the government’s guarantee to purchase with a 10% deposit (or as little as 5%) without paying LMI. The government guarantees the gap between your deposit and 20%.
Since October 2025, the scheme has unlimited places, higher property price caps ($1.5M in Sydney), and broader eligibility (anyone who hasn’t owned property in 10+ years).
Using the FHBG with a 10% deposit rather than the minimum 5% gives you two advantages: lower loan repayments and access to more competitive interest rates.
Guarantor Loans
A family member uses their property equity to secure your loan. With a guarantor, the lender considers the combined security sufficient — no LMI required, even at 90% LVR.
The guarantor portion is typically limited to 20% of the property value. Once your loan reaches 80% LVR through repayments and property growth, the guarantor can be released (usually 2–5 years).
Lenders With 85%+ LMI-Free Thresholds
A small number of lenders waive LMI up to 85% LVR for standard borrowers. If you can stretch your deposit to 15%, this eliminates LMI without any scheme or waiver. At 10%, it won’t help — but it’s worth knowing if you’re close to 15%.
Interest Rates at 90% LVR
Borrowing at 90% LVR typically means slightly higher interest rates compared to 80% LVR. The difference varies by lender but is generally 0.1%–0.3% above the best available rate.
Over a 30-year, $675,000 loan (typical for a $750K property with 10% deposit):
| Rate Premium | Extra Interest Over 30 Years |
|---|---|
| +0.1% | ~$12,500 |
| +0.2% | ~$25,000 |
| +0.3% | ~$38,000 |
This makes lender selection critical. Some lenders offer their best rates at 90% LVR if you have a professional waiver, while others apply a loading regardless. A broker who understands these nuances can save you significantly over the loan term.
10% Deposit vs. 5% Deposit: Which Is Better?
If you have the option, a 10% deposit offers meaningful advantages over 5%:
| Factor | 5% Deposit (95% LVR) | 10% Deposit (90% LVR) |
|---|---|---|
| LMI (without waiver) | ~$32,000 on $750K | ~$14,000 on $750K |
| Interest rates | Higher tier | Lower tier |
| Lender choice | Fewer options | Most lenders |
| Equity buffer | Thin — at risk of negative equity | Moderate buffer |
| Loan serviceability | Tighter | More comfortable |
The LMI difference alone — approximately $18,000 on a $750,000 property — makes a strong case for saving the extra 5% if you’re able to. That said, if property prices in your market are rising quickly, entering at 5% sooner may still produce a better financial outcome.
10% Deposit vs. 20% Deposit: Is Waiting Worth It?
The conventional wisdom says to save 20% and avoid LMI entirely. But this ignores opportunity cost.
Example: On a $750,000 property growing at 6% per year, waiting 3 years to save from $75,000 (10%) to $150,000 (20%) means the property may be worth ~$893,000 by the time you’re ready. Your 20% deposit has now become just 16.8% of the new value — and you still haven’t avoided LMI.
Meanwhile, a buyer who purchased 3 years earlier with a professional waiver at 10% deposit:
- Paid no LMI
- Built ~$218,000 in equity ($143K growth + $75K deposit)
- Locked in a lower purchase price
The maths don’t always favour waiting. If you can avoid LMI through a professional waiver, the case for entering at 10% is particularly strong.
What Lenders Look for at 90% LVR
Borrowing at 90% LVR means lenders scrutinise your application more closely than at 80%. Here’s what they assess:
Genuine savings: Most lenders require at least 5% of the deposit to be genuine savings (money you’ve saved over 3+ months). Gifts, bonuses, and inheritance may make up the remainder.
Income stability: Permanent, full-time employment is preferred. Contract workers and self-employed borrowers face additional requirements (2 years of tax returns, BAS statements).
Living expenses: Lenders use the Household Expenditure Measure (HEM) or your actual declared expenses — whichever is higher. Reducing discretionary spending in the 3 months before application improves your position.
Credit history: Clean credit is essential. Outstanding debts (personal loans, car finance, large credit card limits) reduce your borrowing capacity.
Debt-to-income ratio: Most lenders cap at 6–7x your gross income at 90% LVR. On a $150,000 combined income, that limits borrowing to approximately $900,000–$1,050,000.
Frequently Asked Questions
Can I buy a house with 10% deposit in Australia?
Yes. Most Australian lenders offer home loans at 90% LVR (10% deposit). You’ll typically pay LMI unless you qualify for a professional LMI waiver, use the First Home Guarantee, or have a guarantor.
How much LMI do I pay on a 10% deposit?
LMI at 90% LVR ranges from approximately $7,500 on a $500,000 property to $20,000 on a $1,000,000 property. Exact costs depend on the lender’s insurer. Use our LMI calculator for a personalised estimate.
Is 10% deposit enough for a first home?
10% is a strong starting position for a first home buyer. You’ll access more lenders and better rates than at 5%, and with an LMI waiver or the FHBG, you can avoid LMI entirely. Budget an additional 2–4% of the property price for stamp duty and other purchase costs.
Can I avoid LMI with 10% deposit?
Yes. Four main options: a professional LMI waiver (for eligible occupations), the First Home Guarantee (for first buyers), a guarantor loan (family security), or a lender that waives LMI at higher LVR thresholds.
What interest rate can I expect at 90% LVR?
Rates at 90% LVR are typically 0.1%–0.3% above the lowest advertised rates. Some lenders offer their best rates at 90% LVR for professional waiver borrowers. Comparison rates vary significantly between lenders, so professional guidance helps.
Next Steps
A 10% deposit opens most doors in the Australian property market. The key question is whether you’ll pay LMI on top — and in most cases, you don’t have to.
- Check your LMI waiver eligibility — free, 60 seconds, no credit check
- Explore 90% LVR options — see how to borrow with a 10% deposit and no LMI
- Compare all deposit pathways — find the right balance for your circumstances
- Calculate your potential LMI — understand exactly what you’d save