low deposit home loan no LMI in WA

Low deposit no lenders mortgage insurance home loans in Western Australia


How does the low deposit no LMI home loan work?

The low deposit no Lenders Mortgage Insurance (LMI) home loan is a scheme supported by WA Department of Housing. Under the low deposit home loan scheme borrowers in metropolitan areas can borrow with a deposit as low as 2% of the property purchase price and up to 10% in regional WA depending on the price and location of the property.

Can I get a low deposit home loan without LMI?

To qualify for the low deposit home loan without LMI scheme in Western Australia you must:

  • Be buying a property in Western Australia.
  • Earn a sufficient income to meet their home loan obligations comfortably, usually from being employed.
  • Have less than 10% of your gross income in other debt repayments.
  • meet the minimum genuine savings requirements.
  • meet the minimum deposit limits.
  • Be within the income and property purchase price limits.
  • Be able to demonstrate that you can comfortably meet the low deposit home loan repayments and meet the other criteria.

Note other requirements may apply.

Income and Property Purchase Price Limits

Purchasing area Maximum income limit Maximum Property Purchase Price
Metro Area $95,000 (Singles) $480,000
$115,000 (Couples)
$135,000 (Families)
Regional Areas (excluding Kimberley & Pilbara) $110,000 (Singles) $500,000
$135,000 (Couples)
$135,000 (Families)
Kimberley $120,000 (Singles) $700,000
$150,000 (Couples)
$150,000 (Families)
Pilbara $150,000 (Singles) $850,000
$180,000 (Couples)
$180,000 (Families)

Deposit and savings requirements

The amount you buy your home for The deposit required Genuine savings required
Up to $480,000 2% deposit 1%
$480,001 – $500,000 5% deposit 1%
$500,001 – $600,000 7% deposit 2%
$600,001 – $700,000 8% deposit 3%
$700,001 – $800,000 9% deposit 4%
$800,001 – $850,000 10% deposit 5%


What are the advantage of the low deposit home scheme in Western Australia?

The advantages of the low deposit home loan scheme in Western Australia include:

Borrow with as low as only 2% deposit without lenders mortgage insurance. This can save you thousands of dollars (between $8,000 and $10,000 ) compared to borrowing from most other lenders with such a low deposit. Furthermore, many other lenders will not offer home loans with only 2% deposit unless there is another form of security, like a guarantor home loan or equity from another property.

For first home buyers, the first home owner grant can contribute toward the deposit.

No ongoing monthly account keeping fees.

What are the interest rate of the low deposit home loan without LMI?

The interest of the low deposit home loan is calculated based on the average of the four major banks’ standard variable interest rate (NAB, CBA, Westpac and ANZ).

What else should I know?

Terms and Conditions, fees and charges and normal lending criteria apply.  Rates and limits stated are subject to change without notice.

Contact a mortgage broker about a no LMI low deposit home loan in Western Australia

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I am not in Western Australia or don’t meet the other requirements, what other options are available?

Many lenders allow loans with low deposits but require you to pay for lenders mortgage insurance. Some lenders also allow you to borrow the money to pay for the lenders mortgage insurance.

Some other lenders allow people to borrow up to 85% if the property value without needing Lenders Mortgage Insurance.

Other lenders have professional home loans that allow certain professionals like medical doctors, dentists, chiropractors and vets to borrow up to 90% of the property value without paying lenders mortgage insurance.

Contact a mortgage broker near you to discuss your options

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