October 2026
The bank will lend up to 95% of the purchase price on a home you'll live in. This home doesn't have to be your only property. If you already own property with another bank, you can still be considered.
Existing investment properties aren't exempt from the LVR rules, so lending on them above 70% is usually hard to get. The bank will now consider investment purchases with a 10% deposit, which is a big change for investors who have been waiting to buy their next property.
When you borrow more than 80% of the property's value, the bank charges its advertised base rate plus a Low Equity Margin (LEM). The LEM depends on how much you borrow:
| Deposit | LVR | Low Equity Margin |
|---|---|---|
| 15–20% | 80.01–85% | +0.35% |
| 10–15% | 85.01–90% | +0.75% |
| 5–10% | 90.01–95% | +1.20% |
Here's what that means for the popular fixed terms, with the LEM included:
| Term | Under 80% LVR | 80–85% | 85–90% | 90–95% |
|---|---|---|---|---|
| 6 months | 4.79% | 5.24% | 5.64% | 6.09% |
| 1 year | 4.99% | 5.54% | 5.94% | 6.39% |
| 18 months | 5.24% | 5.64% | 6.04% | 6.49% |
| 2 years | 5.29% | 5.70% | 6.10% | 6.55% |
| 3 years | 5.49% | 5.94% | 6.34% | 6.79% |
For example, a first home buyer with a 5% deposit fixing for one year would pay about 6.39%, compared with 4.99% for someone with a 20% deposit. That gap matters, but for many buyers getting into the market sooner is worth more than the higher rate.
Investors buying with a 10% deposit fall into the 85–90% band, so they would pay the base rate plus 0.75%.
If you're self-employed, the bank will need your 2026 financial statements finalised before it can consider your application. If your accountant hasn't finished them yet, now is a good time to follow up.
Borrowing at a high LVR costs more, and it leaves less room if property values drop. Before you go ahead, it's worth looking at:
Banks can only do a limited amount of low-deposit lending, so these options can change at short notice. If you're thinking about buying, get in touch with the team at KPM. We can tell you where you stand and whether this suits your plans.
Rates are current at the time of writing and may change. All lending is subject to the bank's credit criteria. This is general information, not personalised financial advice.