- Skip (formerly Sucasa) offers low deposit home loans without charging lenders mortgage insurance.
- The non-bank lender uses a primary and secondary loan structure to replace traditional LMI for loans up to 98% LVR.
- Skip targets borrowers locked out of traditional pathways, including those without family help and ineligible for government schemes.
Skip was established in 2022, with a mission statement to improve home ownership for Australian families, especially those who have no access to the Bank of Mum and Dad.
Its unique selling point is simple: Skip home loans don’t include one of the traditional barriers to buying a home, lenders mortgage insurance (LMI). Essentially, it targets borrowers who have strong incomes but limited savings.
Generally speaking, Australian borrowers are charged LMI when their loan to value ratio (LVR) is above 80%. It’s to protect lenders from the risk of loss if the borrower defaults and it can’t recoup the full loan amount from repossessing the property.
The risk is passed on to the insurer, while the borrower pays the premiums for the policy. This can be expensive: on a $675,000 loan for a property valued at $750,000 (90% LVR), the LMI premiums would be $13,500, per the Savings.com.au LMI Calculator.
Buying a home or looking to refinance? The table below features Skip home loans for owner occupiers and investors.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.39% p.a. | 6.60% p.a. | $3,124 | Principal & Interest | Variable | $0 | $790 | 90% | |||||||||||||
6.39% p.a. | 6.69% p.a. | $3,124 | Principal & Interest | Variable | $0 | $790 | 95% | |||||||||||||
6.39% p.a. | 6.74% p.a. | $3,124 | Principal & Interest | Variable | $0 | $790 | 98% | |||||||||||||
6.60% p.a. | 6.79% p.a. | $3,193 | Principal & Interest | Variable | $0 | $790 | 90% | |||||||||||||
6.60% p.a. | 6.86% p.a. | $3,193 | Principal & Interest | Variable | $0 | $790 | 95% | |||||||||||||
6.60% p.a. | 6.91% p.a. | $3,193 | Principal & Interest | Variable | $0 | $790 | 98% | |||||||||||||
6.79% p.a. | 7.02% p.a. | $3,256 | Principal & Interest | Variable | $0 | $790 | 90% | |||||||||||||
6.79% p.a. | 7.13% p.a. | $3,256 | Principal & Interest | Variable | $0 | $790 | 95% | |||||||||||||
6.79% p.a. | 7.19% p.a. | $3,256 | Principal & Interest | Variable | $0 | $790 | 98% | |||||||||||||
6.90% p.a. | 7.11% p.a. | $3,293 | Principal & Interest | Variable | $0 | $790 | 90% |
What is Skip? An overview
Skip is an Australian non-bank home loan lender that specialises in low deposit mortgages without charging LMI or needing to use a guarantor.
See also: Guarantor Home Loans
It launched in 2022 under the name Sucasa (as in 'mi casa su casa') and later rebranded to Skip while still keeping the lending entity and product structure broadly the same.
Adam Trouncer, co-founder and COO, says Skip is different, willing to take the risk and back “young, hardworking Australians.”
“We think there are a lot of very credit-worthy borrowers out there who have good jobs, good incomes, and might be professionals that might be in skilled trades that are being charged too much for home loans above 80%,” he told the Savings Tip Jar podcast.
“Our focus is being best priced in market for loans between 80 and 95% LVR,” Mr Trouncer said.
- Update: Skip currently offers home loans for up to 98% LVR.
Skip business model
Skip operates as a non-authorised deposit-taking institution (ADI), meaning it does not take customer deposits and instead funds loans via wholesale funding arrangements.
Its key point of difference is that it does not charge LMI premiums, even when borrowers have a deposit of less than 20%.
Instead of LMI, Skip prices risk directly into the loan through a split interest rate structure.
The best [path to home ownership] is having rich parents and being able to have some people give you money or guarantee your loan. That's not available to other people.
Second is…the federal first home buyer scheme…great for some, but it's below a certain income threshold, and you need to be either a citizen or permanent resident.
The third is taking a loan out with lenders mortgage insurance.
So we’ve created a fourth [option], where we’re able to back young Australians without taking that LMI.
How Skip home loans work
A Skip home loan with an LVR of greater than 80% will be split into two.
Skip’s split rate arrangement
- The Primary Loan applies for the first 80% LVR portion
- The Secondary Loan covers the remaining portion
To illustrate:
If you borrowed $475,000 from Skip to purchase a property valued at $500,000 (which would make your LVR 95%), the Primary Loan would be $400,000, and the Secondary Loan would be the remaining $75,000.
Both loan portions have the same interest rate and terms and are repaid simultaneously under a principal and interest (P&I) structure. However, only the Primary Loan includes a redraw facility.
Skip rate reduction fee
Skip home loans are available in Ultra Low Rate and Low Rate options, which both come with a one-off rate reduction fee.
It’s the lender’s way of keeping the interest low as the fee lets borrowers buy down, so to speak, their interest rate instead of paying a higher rate over time.
- The Ultra Low Rate home loan has a lower interest rate but higher rate reduction fee.
- The Low Rate home loan has higher interest but the rate reduction fee is around 60-70% of the Ultra Low Rate product's fee.
The Ultra Low Rate is ideal for borrowers with a strong deposit, while the Low Rate could suit borrowers with a solid income but limited savings.
Mr Trouncer told Savings.com.au that Skip aims to always have lower upfront costs and lower rates than any loan with LMI for a given LVR.
If you find a cheaper LMI offer that applies to a comparable 85-98% LVR variable owner occupier home loan of the same size with a comparable interest rate to the product being compared, Skip vows to beat it.
Skip home loans key product features
- No LMI for up to 98% LVR
- Free online redraw for the Primary Loan
- $0 application, annual, or monthly fees
- Free unlimited repayments
- Early repayment allowed
Skip home loan fees
While Skip advertises no application and ongoing charges, other fees may still apply.
- Settlement fee – $395
- Valuation fee – $395
- Discharge fee – $795
- Refinance costs – around $140-$300 (varies by state)
- Stamp duty – varies
Skip home loan eligibility
Skip offers owner occupier and investor home loans up to 98% LVR, for new or established properties in capital city metro areas.
Other eligible locations also include Newcastle, Wollongong, Central Coast, Gold Coast, Sunshine Coast, Canberra, Queanbeyan, and Geelong.
Properties must be at least 50 square metres (excluding balconies and car spaces) to be eligible. Skip won't lend to finance apartments seven stories or more and were completed after 2014 as well as those that have more than 30 units within the High Density Postcode List.
To apply, you’ll need to provide:
- 2 primary identity documents (Australian passport, foreign passport with IMMI Grant Notification, drivers licence, or any government-issued photo ID)
- Proof of income (two recent payslips for employed or two years of tax returns and financial statements for self-employed)
- Recent statement for current liabilities
Skip then runs a digital check of your financial situation using software from Basiq, which it will need permission for. They may ask for additional documents for further verification if required.
Mr Trouncer said pre-approval can be granted in as little as 20-30 minutes, helping Aussies shop for a home with more confidence.
Skip Home Loans vs Banks & other lenders: A comparison
Feature | Skip Home Loans | Banks & other lenders |
Lender type | Non-bank | Banks and non-banks |
Minimum deposit | Up to 2% | Usually 10-20% |
Lenders mortgage insurance | ❌ instead uses a Secondary Loan structure | ✅ usually required for more than 80% LVR |
Interest rate | Variable only | Variable and fixed (varies by lender) |
Payment structure | Principal and interest (P&I) only | Principal and interest (P&I) and interest-only (IO) |
Application fee | $0 | Up to $600 (varies by lender) |
Monthly ongoing fee | $0 | Up to $15 (varies by lender) |
Annual fee | $0 | Up to $400 (varies by lender) |
Rate reduction fee | ✅ | ✅ but rarely explicit |
Redraw facility | ✅ available on Primary Loan | ✅ usually available |
Extra repayments | ✅ unlimited with no penalty | ✅ usually on variable loans |
Target borrowers | First home buyers, low deposit borrowers | Broader market (varies by lender) |
Details are correct at the time of writing but may change.
Other ways to get into the market without a 20% deposit
Getting together a deposit can be the most difficult obstacle on the path to home ownership, particularly amid higher costs of living.
For those who don’t have enough deposit but are anxious to get their foot on the property ladder, Skip home loans could be worth considering.
See also: How to pay a deposit on a home
Here are other options:
Just pay the LMI
While LMI premiums can be expensive, plenty of people opt to bite the bullet and just pay it anyway.
Most lenders are happy to bake in the cost of LMI to the loan amount, so you don’t have to pay it all up front. This means you’ll pay interest on the LMI as well, but you may find this worth it to have a roof over your head and potentially have capital gains outstrip the outlay of the insurance.
Get a guarantor
One way to circumvent LMI is by getting a guarantor to co-sign your mortgage. Usually a close family member or a parent, a guarantor puts up equity in their own property as security for your loan.
However, if you fail to meet the repayments, the guarantor will be considered legally responsible for the loan, and could even lose their own house, so it isn’t something to take on lightly. This could make for a few awkward family dinners.
Government assistance
5% Deposit Scheme
The 5% Deposit Scheme is a federal initiative to help more Australians buy their first home. The government acts as guarantor for up to 15% of the property value, meaning you can borrow with a deposit as small as 5% (or 2% for single parents) and still not pay LMI.
The program was launched as the Home Guarantee Scheme in January 2020 and expanded in October 2025 when it was renamed. The expanded 5% Deposit Scheme has seen place limits removed and previous income caps scrapped, allowing wider access, though citizenship/residency requirements and property price caps still apply.
First Home Owner Grants (FHOG)
Various state governments offer grants to first home buyers that may be considered by a lender as part of your deposit, and could help get you over the deposit hurdle. There are various price caps and other restrictions on these grants.
See below a complete explainer for the First Home Owner Grant of each state in Australia:
- NSW First Home Owner Grant
- VIC First Home Owner Grant
- QLD First Home Owner Grant
- SA First Home Owner Grant
- WA First Home Owner Grant
- TAS First Home Owner Grant
- NT First Home Owner Grant
Help to Buy Scheme
Help to Buy is a federal shared equity scheme that launched in December 2025. Under the program, eligible buyers can take out a home loan with just 2% deposit from a participating lender, while the government chips in up to 30% (existing homes) or 40% (new homes) in exchange for an equivalent equity stake. Place limits and income caps apply.
Frequently Asked Questions
Skip’s headline variable rates are generally competitive with major banks and lenders, particularly for high-LVR loans (above 80%). By splitting the loan into two portions, with the Primary covering up to 80% of LVR and the Secondary covering the remainder, the lender is able to price risk directly into the loan and offer competitive interest rates.
No. Skip does not charge lenders mortgage insurance (LMI) at any LVR. Instead, it uses a Primary and Secondary loan structure to replace LMI, allowing borrowers to purchase with deposits as low as 2% even without a guarantor.
Skip says pre-approval can be issued within 20-30 minutes, provided income and identity documents are provided. Full approval and settlement timelines depend on valuation, documentation, and borrower complexity.
Skip advertises $0 application, annual, or monthly ongoing fees. However, a one-off rate reduction fee and other transactional charges still apply, including settlement, valuation, and discharge fees.