What happened
Australia’s largest mortgage aggregator, Connective, has partnered with non-bank lender Skip to launch a new home loan product that allows eligible borrowers to purchase a property with a deposit of as little as 2 per cent. The product, called Connective Skip, is available through more than 5,400 brokers and is open to both owner-occupiers and investors.
The launch comes as deposit requirements remain one of the biggest barriers to homeownership in Australia. According to PropTrack’s Housing Affordability Report, it now takes Australians more than five and a half years on average to save a standard 20 per cent deposit, with property values continuing to outpace wage growth.
Why this matters for borrowers
For many Australians, the ability to service a home loan is not the issue — the deposit is. Rising property prices mean that even while saving diligently, the goalpost keeps moving. By the time you have saved enough, pre-approvals may have expired and the property you were looking at may have gone up in price.
A 2 per cent deposit on a $700,000 property means $14,000 upfront instead of $140,000 at the traditional 20 per cent threshold. That is a significant difference for first home buyers, upgraders, and investors who have the income to support repayments but have been stuck in a cycle of saving.
It is worth noting that low-deposit loans typically come with higher interest rates and may include lenders mortgage insurance or other costs. Borrowers should always compare the total cost of a low-deposit loan against waiting and saving a larger deposit.
The government’s 5 per cent Deposit Scheme has already helped over 300,000 Australians into homeownership, but demand continues to outstrip available places. Products like Connective Skip offer an alternative pathway through the broker channel, without relying on government scheme availability.
If you are earning enough to comfortably make repayments but struggling to clear the deposit hurdle, it may be worth exploring what options are available to you — including low-deposit products, government schemes, and family guarantee arrangements.
Talk to a Finance Hub broker — call 0430 11 11 88 or visit finhub.net.au
Source: Broker Daily, 2 June 2026
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