How does an OwnHome Deposit Boost Loan work?

The OwnHome Deposit Boost Loan is a loan that covers the 20% deposit you need for a traditional loan. We loan you the amount you need for a deposit, and that sum can then be paired with a regular 80% LVR home loan from another lender.
Ava Crawford
Written by
Ava Crawford
Imogen Baxter
Reviewed by
Imogen Baxter
Last updated
March 12, 2024
0 minute read
Table of contents
young couple sitting on the couch, celebrating their home purchased with an OWnHome Deposit Boost Loan

Australian homeownership rates among those aged 25–34 years have declined by over one-quarter since 1981. The major hurdle aspiring home-buyers face is saving for the deposit.

A standard home loan deposit is 20% of the property purchase price, and in today’s housing market, with prices often exceeding $1 million, can mean you need $200,000 upfront or more.

This is no easy task. In Australia, the time required to accumulate a deposit for a typical property has increased from six years of median earnings in 1994 to 14 years currently - and even longer in cities like Sydney and Melbourne.

Renters in property markets like Sydney may find they have to spend most of their income on their housing costs anyway — paying off someone else’s home loan without accruing any equity or genuine savings of their own.

Even if you earn a high income, saving for this massive upfront cost can be hard without money from family members or a guarantor.

While first-home buyer government support schemes, like the First Home Guarantee, are a valuable resource for many, they are limited in scope and have income and property value restrictions that leave a portion of aspiring homebuyers unserved.

What’s more, if you buy with a deposit smaller than 20%, you risk paying the steep costs of Lenders Mortgage Insurance (LMI) — not to mention the higher interest rates on loans with a high loan-to-value ratios (LVRs).

This is why the OwnHome Deposit Boost Loan is changing the game. So, let’s look at how our innovative loan works and what you need to know.

How doesOwnHome work?

OwnHome offers a Deposit Boost Loan, which is a loan that covers the 20% deposit you need for a traditional loan. We loan you the amount you need for a deposit, and that sum can then be paired with a regular 80% LVR home loan from another lender.

The OwnHome Deposit Boost Loan helps Aussies with good incomes and credit scores access 80% LVR home loans - without needing hundreds of thousands in savings. This way, you can get onto the property ladder sooner and buy your dream home.

Upfront costs of the OwnHome Deposit Boost Loan

The OwnHome Deposit Boost Loan has a Starter Fee of 2%(+GST) of the purchase price, depending on how much you want to borrow from us.

All homebuyers in Australia must pay some additional government upfront fees. When purchasing a home, OwnHome customers will also need to pay:

  • Stamp duty
  • Loan application charges like transfer and registration fees.

Check out our Upfront Cost Calculator to see how we stack up against traditional lending options.

That’s it! OwnHome covers the rest of the deposit

What is included in the Deposit Boost Loan Starter Fee?

The OwnHome Deposit Boost Loan Starter Fee covers:

  • An OwnHome Buyer’s Agent. Our licensed Buyer’s Agents will guide you through home-buying from property-hunting to settlement and move-in. The expert team will handle all real estate agent communications, including negotiation and auction.
  • Building and pest reports, plus strata report reviews. While we hope every report comes back with a clean bill of health, we’ve seen it all before, and we’ll advise you on the next steps if there are any red flags.
  • Daily updates and weekly consultations. Communication is key!
  • Personalised digital Home Finder tool. We’re in the weeds with you to suss out properties that could genuinely work for you.

OwnHome’s goal is to make homeownership more accessible, affordable and fun!

Skip the waiting & saving. Buy a property today with OwnHome.
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How do the OwnHome Deposit Boost Loan repayments work?

The OwnHome Deposit Boost Loan is a principal and interest, variable rate loan with a 15-year term. It can cover a home deposit amount of up to 20% of the purchase price — your standard home loan from a first mortgage lender covers the balance of the property price.

For the first fifteen years of your (usually 25 or 30-year) mortgage, you will make repayments on your Deposit Boost Loan as well as on your primary mortgage.

Example: Jane is buying a $950,000 property, with OwnHome covering the entire 20% deposit. Jane gets approved for a 80% LVR primary mortgage at 5.99%p.a (5.99%p.a. comparison rate), with no additional fees and charges. Her combined interest rate p.a. would be 7.17% p.a. (comparison rate 7.63% p.a.). She has combined repayments of $6,894 a month to begin with, and once her OwnHome loan is paid off, she only needs to repay her 80% LVR mortgage, at $4,552 a month. In summary, Jane's payments could be:

  • Regular home loan monthly repayments: $4,552
  • Monthly OwnHome repayments: $2,342
  • Total monthly repayments: $6,894


OwnHome Deposit Boost Loan eligibility criteria

The Deposit Boost Loan isn’t for everyone. If you have enough funds saved for 20%, we encourage you to explore more traditional home loan offers.

Instead, the OwnHome Deposit Boost Loan is designed to suit high-income Australians with strong credit scores who can service their mortgage repayments but are unable to access a traditional home loan because they don’t have the 20% deposit.

To qualify for the OwnHome Deposit Boost Loan, home buyers must have:

  • Australian citizenship or permanent residency (At least one applicant)
  • An income high enough to service the Deposit Boost Loan plus an 80% LVR home loan
  • An excellent credit history.
  • Enough funds to cover the Starter Fee plus GST and Stamp Duty.

Additionally, the property price must meet our criteria and be located in an area that we currently serve.

Can you afford mortgage repayments but not the deposit? Learn more about a deposit boost loan.
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The target market for this product will be found within the product’s Target Market Determination, available here.

Please note that a Deposit Boost Loan is not suitable for all situations. To get personalised advice for your specific circumstances, please speak to a financial advisor or mortgage broker.


Does the Deposit Boost Loan have an offset account?

The OwnHome Deposit Boost Loan does not have an offset account. However, it does allow extra repayments at no penalty to help save interest and pay down your loan more quickly.

Do I have to pay LMI on the Deposit Boost Loan?

Great news! You don't need to pay LMI with OwnHome. This is because the OwnHome Deposit Boost Loan can cover up to the 20% deposit which you can use to apply for home loans with an 80% LVR.

Can investors apply for the Deposit Boost Loan?

OwnHome’s Deposit Boost Loan is just for owner-occupiers, not investment properties.

Does the Deposit Boost Loan have a redraw facility?

The OwnHome Deposit Boost Loan does not have a redraw facility.

Does the Deposit Boost Loan cover property valuation?

OwnHome does not charge any property valuation fees, but your primary home loan provider may charge you if they need to do their own when you purchase.

Is buying a property with a small deposit risky?

OwnHome is committed to responsible lending. An OwnHome Deposit Boost loan is designed for people who do not have the cash for an upfront deposit but are more than capable of covering monthly principal and interest repayments for both the Deposit Boost Loan and a primary mortgage.

A Deposit Boost Loan is not suitable for all situations. To get personalised advice for your specific circumstances, please speak to a financial advisor or mortgage broker.

This article is intended to be general in nature and is not personal financial product advice. It does not take into account your objectives, financial situation, or needs. In particular, you should seek independent financial advice and read the relevant product disclosure statement (PDS), or other offer documents before making an investment decision in relation to a financial product (including a decision about whether to acquire or continue to hold).
Prepared by OwnHome Services Pty Ltd ACN 664 492 059. This information does not take your personal objectives, circumstances or needs into account. Always read the disclosure documents for products and services before deciding on a product or service, and consider seeking independent legal, financial, taxation or other advice for your unique circumstances.

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