You can buy a house with a 10% deposit.
Most lenders will lend with 10% down, but you'll pay Lenders Mortgage Insurance on anything under 20%. For FIFO workers, the calculation changes slightly because your income structure doesn't fit the standard payslip format most lenders expect. Some lenders factor in your full allowances and overtime, others strip them back to base rates. That difference can mean approval or rejection on the same deposit amount.
What You Actually Pay with a 10% Deposit
Lenders Mortgage Insurance is the cost of borrowing above 80% of the property value. If you're putting down 10%, you're borrowing 90% of the purchase price, and LMI applies to that entire loan amount.
On a $450,000 property in Baldivis with a 10% deposit, you'd need $45,000 upfront. LMI on a 90% loan typically adds another $12,000 to $16,000 to your total borrowing, depending on your lender and loan amount. That gets capitalised into the loan, so your actual borrowing sits closer to $421,000. Your repayments reflect that larger figure, not just the $405,000 purchase loan.
Some FIFO workers access LMI waivers based on their occupation and income level. If you're earning over $100,000 and working in specific roles, certain lenders drop the LMI requirement entirely, even at 90% borrowing. That can save you the full $12,000 to $16,000 cost.
How Lenders Treat FIFO Income at 90% Borrowing
Lenders tighten up on income verification when your loan to value ratio pushes past 80%. At 90% borrowing, most will want to see 12 months of payslips and tax returns to confirm your full income, including allowances and overtime.
Consider a mobile plant operator working two-week swings in the Pilbara. Base pay sits at $85,000, but with site allowances and overtime, total income lands closer to $130,000. Some lenders will assess the full $130,000. Others cap their calculation at base plus 50% of allowances, bringing the assessable income down to around $107,500. That $22,500 difference directly affects how much you can borrow.
When you're sitting at 90% borrowing, that income treatment matters more. A lower assessed income means a smaller loan approval, which might push you back under your purchase price or force you to increase your deposit beyond 10%. Working with lenders who understand FIFO income structures becomes less about convenience and more about whether the deal works at all.
The Offset Account Consideration at 10% Deposit
Most lenders offer an offset account on owner occupied home loans regardless of deposit size. You'll want one if you're holding cash in your account between swings or building up savings after settlement.
An offset account links to your home loan and reduces the interest you pay on the portion matched by your savings balance. If you've got $20,000 sitting in offset and a $421,000 loan, you're only paying interest on $401,000. Over time, that cuts years off your loan term without changing your repayment amount.
For FIFO workers, this matters during stand-down periods or if you're planning to move into investment property later. Cash flow fluctuates more than a standard fortnightly wage, so having access to funds while still reducing interest gives you room to move without refinancing.
Ready to get started?
Book a chat with a Finance & Mortgage Broker at FIFO Home Loans today.
Variable Rate vs Fixed Rate with a 10% Deposit
Your deposit size doesn't restrict your rate type. You can lock in a fixed interest rate or stick with a variable rate at 90% borrowing, though fixed rates typically sit slightly higher than variable at any given time.
Variable rates give you full offset access and unlimited extra repayments. If you're planning to throw lump sums at the loan when you finish a swing, variable keeps your options open. Fixed rates cap extra repayments at around $10,000 to $30,000 per year depending on the lender, and most don't offer full offset functionality during the fixed period.
In a scenario where you've locked in a three-year fixed term and rates drop by 0.5%, you're stuck at the higher rate unless you pay break costs to exit early. Those costs can run into thousands depending on how far rates have moved and how much time remains on your fix. If you're unsure which direction rates are heading, a split loan lets you fix part of the balance and keep part variable, which spreads the risk.
What You Need Before Applying for a Home Loan
Lenders want proof of your deposit source and confirmation you can service the loan. For FIFO workers, that means payslips covering at least three months, a recent tax return, and bank statements showing where your 10% deposit came from.
If your deposit includes savings from multiple accounts or a gifted amount from family, the lender will ask for statements covering 90 days to confirm the money wasn't borrowed elsewhere. They'll also check your spending patterns to make sure your current commitments don't push your serviceability too close to the limit.
Getting loan pre-approval locks in your borrowing capacity before you start shopping. It doesn't guarantee final approval, but it confirms how much you can borrow and whether your income assessment will hold up under the lender's criteria. For properties in high-demand areas like Baldivis or Butler, that certainty keeps you in the running when multiple offers come through.
Call one of our team or book an appointment at a time that works for you. We'll run the numbers on your full FIFO income and show you which lenders will approve at 90% borrowing, with or without LMI depending on your situation.
Frequently Asked Questions
Can FIFO workers get a home loan with only a 10% deposit?
Yes, most lenders will approve a home loan with a 10% deposit for FIFO workers. You'll need to pay Lenders Mortgage Insurance on the loan amount above 80%, though some FIFO workers qualify for LMI waivers based on their income and occupation.
How much does Lenders Mortgage Insurance cost with a 10% deposit?
On a 90% loan for a $450,000 property, LMI typically costs between $12,000 and $16,000. This amount gets added to your total loan balance rather than paid upfront, so your repayments reflect the increased borrowing.
Do lenders assess FIFO income differently at 90% borrowing?
Yes, lenders tighten income verification when you borrow above 80%. Some will assess your full FIFO income including allowances and overtime, while others cap it at base pay plus a percentage of allowances, which directly affects your borrowing capacity.
Can I get an offset account with a 10% deposit home loan?
Most lenders offer offset accounts regardless of your deposit size. An offset account reduces the interest you pay by matching your savings balance against your loan, which can save years off your loan term without increasing repayments.
Should I choose a fixed or variable rate with a 10% deposit?
Your deposit size doesn't restrict your rate type. Variable rates offer full offset access and unlimited extra repayments, while fixed rates provide certainty but typically limit extra repayments and may not offer full offset functionality during the fixed period.
