How much can I borrow with a 10% deposit?
Technically, there is no limit to how much you can borrow with a 10% deposit. While this is true, some Mortgage lenders will limit the amount as a security measure. Usually, 20% is the average deposit required for a mortgage loan.
If you don’t have a 20% mortgage deposit, you can still find great mortgage lenders to loan you the money needed. However, the interest rate for a 10% deposit is likely to be higher than a 20% deposit.
The average loan for a 10% deposit is $500,000. Although it is possible to get more than this amount, the requirements and eligibility get harder. For example, some lenders allow a small 10% deposit on homes over one million, but it is frowned upon by many LMI providers.
Some special circumstances allow for the LMI to be waived. Keep in mind, though, that this is rare and not often completed. If you work in a highly paid specialist field such as medicine or dentistry, there is a higher chance that an LMI will be waived for homes between 2 million to 4.5 million. Mortgage lenders just want security that the loan will be paid in full.
Borrowing with 10% Deposit Conclusion
It is hard to find a mortgage loan company or lender that is willing to allow someone to only put down 10%. While this is true, there are still lenders that will allow a 10% deposit on a home. However, special requirements and fees are needed.