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10 Simple Ways on How You Can Buy A House Even with A Small Deposit

Contrary to popular belief, you don’t need a huge deposit when buying a home. While it has some setbacks such as having limited options, it’s still doable. Some people may say that it’s hard – it is – so is buying a home with a large deposit. Nothing comes easy, but if you know what to look for and how to do it, it’s possible.

Therefore, we’re here to discuss some of the most common ways that could help you acquire a home even with a small deposit. Whether you’re trying to save up for the future, you have limited funds but don’t want to rent, or no matter what your reason is, if you want to invest right now, we’re going to make it happen.

Save 5% Of the Property’s Purchase Price

Some people will say that you need at least 20% of the purchase property. While this is the ideal amount, not everyone has the capability to do so. Instead, you can go and save 5% instead and start scouting the property market.

Go Ahead and Look for A Cheaper Property

With a small amount of deposit, you won’t be able to purchase a large home – that would be extremely difficult. Instead, go for a smaller home or a cheaper one instead; this works best especially if you’re looking to simply invest in a property that you would be selling later. Instead of looking for a property that costs $1million, why not look for something else that’s half or quarter the price?

Sure, the location may not be as ideal as you wanted it to be, but with a little bit of research and time spent finding properties, you’ll be able to find a home with a nice neighborhood for that price. This is a great starting point especially if this is your first time buying a home.

Try to think of it this way: if you lower the property price that you’re looking for, consider this as an investment – and not as a dream house. There’s a workaround for this, especially with a small initial deposit.

Look for An Investor

If you have small money on hand, try and look for someone else who wants to invest in a house or another property and combine your initial deposits so you could afford a bigger or more expensive property. Just always remember to be careful when going on a business venture like this as this also affects your lending and credit score in the future.

If you don’t know where to start, you can speak with a mortgage broker and request for assistance.

Look for Homes That Are Below The Market Value

This is a bit difficult to find as most homes are way above the market value, but it doesn’t mean that properties like these do not exist. You just won’t be able to find one immediately, or you can’t find one that’s in the capital of the city, but there will be one or two that are priced below the market value.

What you can do to make your hunt easier is to contact lenders and help you find homes with a lower valuation compared to others. Again, assistance from a mortgage broker plays a crucial role and they can help you make this possible.

Buy A Land Instead of A Home

If you’re investing in a home so you can plant roots and start a family, you may initially want to buy land instead. Your small initial deposit could go a long way if you buy land instead of buying one that already has a house constructed on it.

In fact, some of the lands are less than half the price of the home. Do this, and when you have the extra money, you can then work on your home construction project. This is also advantageous on your part since you’ll be able to choose and decide the house’s layout based on your needs and your overall budget.

Use Your Rent Towards Your Initial Deposit

Some lenders will allow you to combine and make use of your rent to combine with your initial deposit. You can ask your lender if they will allow you to use your rent and add it to your deposit – like “rent to own” properties.

Your mortgage broker will be the one to set up the deal with your lender and create the terms and conditions of this contract.

Small Unsecured Loan

If you have a small initial deposit on hand, another option for you is to additionally use an unsecured loan. This can help you get more money to add up to your initial deposit so you could have higher chances of getting the house or property that you’re eyeing for.


Buying a home even with a small initial deposit is possible. It is encouraged that you find a mortgage broker that you trust. One that has extensive experience and knowledge when it comes to purchasing homes even with a small initial deposit.

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