You don’t always need 20%. Depending on your state and circumstances, there are four common paths to get in sooner each with pros and risks.
Family guarantor (security guarantee)
- How it works: A parent uses equity in their property to secure part of your loan so you can avoid LMI and buy sooner.
- Pros: Lower deposit needed; potentially better interest rates by staying ≤80% LVR.
- Risks: The guarantor’s property is on the hook up to the guaranteed amount. Have a clear release plan.
- Good for: Strong income + thin deposit; stable family support.
Shared‑equity programs
- How they work: A government or partner co‑invests and takes an equity share. Your required deposit and repayments are reduced.
- Pros: Lower entry cost; may help in high‑price areas.
- Consider: Income/price caps, property restrictions, and future buy‑back mechanics of the partner’s share.
Low‑deposit lending with LMI
- How it works: Borrow above 80% LVR and pay Lenders Mortgage Insurance (LMI).
- Pros: Buy sooner, keep savings for buffers and moving costs.
- Consider: LMI is a cost (upfront or capitalised). Rates can step down as your LVR improves.
State‑based options (e.g., Keystart WA)
- Overview: Certain lenders/programs are designed for moderate deposits and income caps.
- Check: Eligibility rules, product types (interest‑only vs P&I), and refinance pathways later.
Book a deposit‑path review. Request a free First‑Home Strategy Call.
We’ll compare guarantor vs shared‑equity vs LMI and show your costs side‑by‑side.