OwnHome: An alternative path to home ownership
Dominic Beattie
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- OwnHome allows eligible buyers to effectively borrow up to 100% of a property's value by combining a traditional home loan with a Deposit Boost Loan.
- The product is designed for high‑income buyers with limited savings who may not have a 5% deposit saved or might not be eligable for the 5% Deposit Scheme.
- While the Deposit Boost Loan carries a higher interest rate and an upfront Low Deposit Premium, the overall cost may still be cheaper than LMI for borrowers looking to buy with a small or non-existent deposit.
OwnHome is presenting a new pathway to home ownership for those Aussies with strong income but meagre savings. Backed by the Commonwealth Bank, OwnHome allows aspiring home buyers to borrow up to 20% of the property's value for a home deposit.
For many, saving a deposit is the biggest barrier to buying property. Experts and lenders often recommend saving 20% of your ideal property's value to avoid paying lenders mortgage insurance (LMI) and better your chances of loan approval, but that's easier said than done.
Australia's median house price surpassed $1 million in early 2026 - a value that would demand a $200,000 deposit if a buyer wanted to put down 20% - around double the average full time salary.
The startup's CEO and co-founder James Bowe said OwnHome aims to help budding Aussie homeowners who are seeing "the goalposts moving further and further out of reach."
"The reality is that it's becoming almost impossible to save that 20% deposit and stamp duty," Mr Bowe told the Savings Tip Jar podcast.
"As a society … we're seeing homeownership become increasingly hereditary … who your parents are is becoming way more important than how capable you are of servicing or affording a mortgage.
"OwnHome, very simply, is a solution that offers borrowers a low deposit pathway to homeownership."
How OwnHome works
In general, lenders don't write loans with loan-to-value ratios (LVRs) of more than 95%. Most charge LMI on loans with LVRs of more than 80% and tend to be more selective about who they're lending the money to once an LVR reaches a certain level.
An OwnHome Deposit Boost Loan can provide a workaround, offering a separate loan for up to 20% of the value of the property you are buying. It needs to be used in conjunction with a separate loan (covering the remaining 80%) from OwnHome or another lender, with both loans repaid simultaneously.
If you're looking at a property priced at $500,000 and you've got $25,000 saved, you're likely working with a 5% deposit.
You could feasibly borrow $75,000 from OwnHome via a Deposit Boost Loan, leaving you with a 20% deposit, and borrow the remaining $400,000 via a traditional loan from a participating lender or with an OwnHome Primary Loan.
In theory, you could buy a property with no deposit: Borrowing 80% of a property's price with a traditional home loan and 20% from OwnHome.
OwnHome eligibility
OwnHome demands borrowers meet minimum income requirements. These vary from customer to customer but, as a rough guide, Deposit Boost Loans may be best suited to borrowers with an annual income above $125,000, or a couple earning more than $175,000 combined.
Previously, OwnHome listed a few other eligibility requirements:
You'll need a credit score of at least 750
The property needs to be in or close to a metropolitan area or regional centres
As of March 2026, OwnHome does not lend for properties in the NT or Tasmania
You must be an Australian citizen or permanent resident
Can only be used for owner occupied or first investment home purchase
OwnHome cost
The Deposit Boost Loan's interest rate is higher than that of a traditional home loan. However, it's generally paired with a Primary Loan from the lender, which boasts notably competitive rates for higher-LVR borrowers at the time of writing.
OwnHome also charges an upfront low deposit premium (LDP) of 1.1% to 2.2% of the value of the property. If you are not putting up any deposit of your own, you are charged the full 2.2%. But if you have a 10% deposit, you may pay 1.1%.
This LDP covers both the loan and the home buying assistance that OwnHome provides (details below).
OwnHome mortgage features
Deposit Boost Loans have a 15-year loan term, while OwnHome's Primary Loan can have terms of up to 30 years.
Those turning to the product aren't locked in - they can refinance at any time - though having an LVR of more than 80% might inhibit them doing so.
OwnHome also offers complementary access to a buyer's agent to assist with finding properties, negotiating with sellers, and organising building/pest inspections, among other things.
Is OwnHome worth it?
OwnHome is ideally suited to aspiring home owners with a strong income but limited savings.
In fact, if you are looking to borrow more than 95% of a property's value, it might be your only option. Additionally, if you're seeking to borrow more than 80% of a property's value but don't qualify for the 5% Deposit Scheme or boast generous and wealthy family members, it could save you money.
"60% of successful first-time buyers rely on direct support from the bank of Mum and Dad," Mr Bowe told the podcast.
"If you don't choose your parents…what are your options to homeownership that don't require coming up with a full 20% deposit plus stamp duty? That's where OwnHome steps in."
The Low Deposit Premium will generally also be significantly lower than equivalent LMI premiums, which could also be critical for those looking to buy without strong savings. In fact, the lender offers to beat any LMI premium that comes in lower than its own premium by $1,000.
For borrowers with a larger deposit, you'll need to crunch the numbers to see whether you'll come out on top long term. If you're considering a loan with OwnHome, you should compare other home loans to find the best 80% LVR loan to combine with it, as well as the strongest alternative low deposit loan option.
Once you've got that, you should crunch the numbers yourself to understand exactly what you're choosing between.
Other low deposit home loans
There are other options if you're looking for a home loan with a low deposit.
Low deposit home loans
There are still plenty of lenders that are willing to write high LVR loans. High LVR loans usually mean higher interest rates and LMI, but there are still plenty of products out there with competitive rates. In general however, low deposit home loans still won't lend beyond a 95% LVR.
Read more: 95% LVR loans
Government schemes
The 5% Deposit Scheme exists to help eligible Aussies to buy with a small deposit and avoid LMI. It essentially sees the Government acting as guarantor for up to 15% of the loan (or 18% for single parents), making the loan safer in the eyes of the lender and negating the need for LMI.
However, not everyone can qualify for the 5% Deposit Scheme. Notably, you need to either be a first home buyer or single parent to access it.
There's also the Help to Buy shared equity scheme, which can see eligible purchasers buying alongside the federal government. Though, the Help to Buy scheme also demands those turning to it abide by income thresholds, as well as other eligibility requirements.
Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.
| 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 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.94% p.a. | 5.98% p.a. | $2,978 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
5.89% p.a. | 5.80% p.a. | $2,962 | Principal & Interest | Variable | $0 | $0 | 80% |
| Promoted | Disclosure | ||||||||||
5.99% p.a. | 5.95% p.a. | $2,995 | Principal & Interest | Fixed | $0 | $0 | 60% |
| Promoted | Disclosure | ||||||||||
5.93% p.a. | 5.93% p.a. | $2,975 | Principal & Interest | Variable | $0 | $395 | 70% | Disclosure |
