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Home loans / Low deposit premium

How it works

  • A Low Deposit Premium (LDP) is a one-off, non-refundable, non-transferrable bank fee that we add to low deposit home loans. Designed to reflect the risk associated with low deposit loans, LDP is calculated based on the size of your deposit and how much you borrow. The more you contribute to the purchase price of your property, the lower the cost will be.

    LDP protects the bank against any loss we may incur if you are unable to repay your loan.

    The circumstances of your home loan will determine whether it incurs LDP or Lenders Mortgage Insurance (LMI). You will only need to pay for one – not both. 

    Example

    • If you want to buy a house that’s worth $500,000, we would typically require you to have a deposit of $100,000 (20% of the property’s value). If you’ve only saved $50,000, but you have sufficient income to support the loan, you may be able to take advantage of Low Deposit Premium or Lenders Mortgage Insurance. We would then lend you the $450,000 needed to buy your new home.

    Our Home Lending Specialists can help explain when Low Deposit Premium may apply on your home loan, as well as how much it will cost. 

    Download our Low Deposit Options guide (PDF)

Features & benefits

    • Enter the property market sooner by taking out a home loan with a smaller deposit
    • Stop paying rent
    • Start growing equity in a home
    • By having LMI or LDP, you won't need to rely on a guarantor to supply additional security to secure your home loan

Other low deposit borrowing options

  • Lenders Mortgage Insurance

    Similar to Low Deposit Premium, this additional cost can help you get your home loan with a smaller deposit.

    Tell me about LMI

  • Property Share

    Split the cost of a home with family or friends, while keeping individual control of your finances. Available for most home loans.

    Find out about Property Share

  • Guarantor Support

    A family member can help you secure a home loan by mortgaging their own property as additional security.

    Tell me about Guarantor Support

  • Home Guarantee Scheme

    You may be able to buy your first home sooner with a smaller deposit.

    Find out more about the Scheme

Things you should know

    • LDP is a bank fee and not an establishment fee
    • LDP is designed to protect us (CommBank), not you (the borrower), against the risk associated with providing you with a low deposit home loan and the potential loss we may incur if you’re unable to repay your home loan
    • All fees are capitalised (added) to the total home loan amount when your home loan is settled. This means you’ll pay more interest over the agreed contracted loan term
    • If you're unable to repay your home loan, we may step in to assist with the sale of the property. If the proceeds from the sale are not enough to pay off the loan in full then, we may seek to recover the remaining debt from any borrower(s) (you) and, where applicable, any guarantor(s) on the home loan
    • If we ask you to pay LDP we won't ask you to pay Lenders Mortgage Insurance

Tools & support

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Get instant answers from Ceba our virtual assistant, or connect with a specialist who can message you back. You’ll need notifications for the CommBank app turned on so you know when you’ve received a reply. 

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