How much deposit do you need for a home loan through a mortgage manager or non-bank lender?

Last updated 14 November 2026 · Reviewed by 360 MMS Compliance

What decides how much deposit you need?

Lenders and mortgage managers look at four main things:

• The type of loan: whether you'll live in the home or rent it out, and whether it's a standard loan or one designed for a more complex situation.
• The property: its type and location. Lenders can ask for a bigger deposit for some property types or locations.
• Your situation: your income, expenses, debts and credit history. You'll usually need to show you can save and manage money. Your broker will assess your income and financial situation.
• The lender's criteria: each lender and funder sets its own, so a deposit that's enough for one loan may not be enough for another. The lender will assess your application against its criteria.

Do non-bank lenders and mortgage managers need a bigger deposit than banks?

Not necessarily. Banks, non-bank lenders and mortgage managers each set their own criteria, so the deposit can be similar or different depending on the loan. Where non-bank loans often differ is in who they're designed for, such as self-employed borrowers, companies and trusts, and people with a past credit event.

Loans for more complex situations can need a bigger deposit or cost more at any lender, so compare the total cost, not just the deposit. Some of our home loans are available with a smaller deposit, and a risk fee may apply.

What is LMI, and what is a lender risk fee?

When you borrow a higher share of the property's value, the lender takes on more risk, and that usually comes with an extra cost:

• Lenders mortgage insurance (LMI): insurance that protects the lender, not you, if the loan can't be repaid. You pay for it, at settlement or by adding it to the loan.
• A lender risk fee: on some higher-borrowing loans, a risk fee applies instead of LMI. You pay one or the other, never both, and on some loans it can be added to the loan.

If LMI or a risk fee is added to the loan, you borrow more and pay interest on it over the life of the loan. Your broker can tell you which applies and how much it is.

LMI, a lender risk fee or a bigger deposit: how do they compare?

What costs do I need on top of the deposit?

• stamp duty (transfer duty), with rules and concessions that differ between states and territories;
• conveyancing or legal fees, and government fees to register the transfer and the mortgage;
• loan fees, such as application or settlement fees;
• LMI or a lender risk fee, if it applies and isn't added to the loan;
• inspections and moving costs.

Moneysmart suggests working out your deposit by starting with the property price, adding the buying costs and taking away what you can borrow.

Can government schemes help with my deposit?

If you're buying your first home, Australian Government schemes may help. The firsthomebuyers.gov.au site covers:

• the Australian Government's deposit scheme (formerly the Home Guarantee Scheme), which can help eligible buyers buy with a smaller deposit without paying LMI;
• Help to Buy, a shared equity scheme where the Government contributes part of the purchase price;
• the First Home Super Saver Scheme, which lets you save for a deposit through your super.

The First Home Owner Grant is separate: each state and territory runs its own, and the rules differ. Eligibility rules apply to every scheme. The deposit scheme and Help to Buy are offered through participating lenders, and 360 MMS isn't one of them, so check firsthomebuyers.gov.au and ask your broker which options fit you.

What are the pros and cons of buying with a smaller deposit?

Possible pros:

• You may be able to buy sooner, rather than saving for longer.
• Some loans and government schemes are designed for buyers with a smaller deposit.
• On some loans, LMI or a risk fee can be added to the loan rather than paid upfront.

Possible cons:

• You'll usually pay LMI or a lender risk fee.
• You borrow more, so repayments are higher and you pay more interest over the life of the loan.
• You have less equity, so a fall in property values could leave you owing more than the property is worth.
• Some loans need a bigger deposit, so you may have fewer options.

How do I work out my deposit, step by step?

1. Start with the price range. Look at the type and location of the property you want.
2. Add the buying costs. Stamp duty, fees, and LMI or a risk fee if they apply.
3. Check government schemes. If you're a first home buyer, check your eligibility on the official sites.
4. Talk to a broker or our team. Share the property, whether you'll live in it, and your income and finances.
5. The assessment. Your broker will assess your income and financial situation, and the lender will assess your application against its criteria, including a valuation of the property.
6. The offer. If the application is approved, you receive a loan offer and loan documents to read and sign.

How can 360 MMS help?

360 MMS is a mortgage manager. Its home and commercial loans are funded by wholesale institutional funders and arranged through accredited mortgage brokers or directly. We can help with:

• A smaller deposit: some of our home loans are available with a smaller deposit, and a risk fee may apply.
• A shared-equity option: some of our home loans pair a first mortgage with a shared-equity second mortgage, which can let eligible buyers purchase with a smaller deposit and without lenders mortgage insurance, while staying the full owner on the title. Your broker can explain how it works, what you'd repay and whether it suits you.
• A lender risk fee instead of LMI: on some of our home loans, when you borrow a higher share of the property's value. You pay one or the other, never both.
• Self-employed borrowers: full doc and low doc home loans.
• Companies, trusts and past credit events: some of our loans are designed for these borrowers.
• House and land: with an approved builder, some options let you pause repayments during the land and build period. The interest is added to the loan, so you pay more over the life of the loan.
• Getting started: apply through an accredited mortgage broker, or contact our team directly.

FAQs

Sources and further reading:Moneysmart: Save for a house deposit · Moneysmart: Lenders mortgage insurance (LMI) · First Home Buyers (Australian Government): home buyer schemes

General information only. It doesn't take into account your objectives, financial situation or needs, and it isn't credit, tax or legal advice. All loans are subject to lending criteria, and fees and charges apply. Kuone Pty Ltd T/As 360 MMS (ABN 81 621 683 672), Australian Credit Licence 504193.