Australian family achieving homeownership

Helping Australians with a low deposit buy property

Enabling lenders to sustainably offer market leading home loans for the <20% deposit segment, with less risk and improved margin

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Saving a deposit is a major barrier to buying property.

First home buyers who believe they are likely to save a full 20% deposit:

Housing statistics showing declining deposit savings
  • Based on a median salary $65,000 per person and prices for a house of $1,471,892 and an apartment of $859,050 (Sydney). Corelogic & ABS, Aug 2024
Saving a deposit is a major barrier to buying property

Evolving guarantor home loans into a diversified investment product

Investors (Homeowner)

Investors (Homeowner)

  • •Generate a return on inaccessible property equity without any capital outlay
Lender

Lender

  • •Grow home loan market share with a sustainable and competitive interest rate offer for <20% deposit holders
  • •Improve return on regulatory capital (up to 57% more effective than LMI pursuant to APS112)
Purchaser

Purchaser

  • •Purchase years faster and save $10,000's in upfront LMI fees and interest rate premiums
Investors (Homeowner)

Investors (Homeowner)

  • •Generate a return on inaccessible property equity without any capital outlay
Lender

Lender

  • •Grow home loan market share with a sustainable and competitive interest rate offer for <20% deposit holders
  • •Improve return on regulatory capital (up to 57% more effective than LMI pursuant to APS112)
Purchaser

Purchaser

  • •Purchase years faster and save $10,000's in upfront LMI fees and interest rate premiums

How it works

Turning idle home equity into a bridge to homeownership

  • We provide each Lender with secured guarantees, pledged as additional collateral value against <20% deposit home loans

  • The additional collateral makes the loan reach 80% LVR on the lender's balance sheet and reduces Loss Given Default risk

  • The reduced capital requirement for loans with additional collateral enables the Lender to offer reduced interest rate home loans without LMI to low deposit borrowers

  • For the borrower, OLU does this without:

    • Being on title; or
    • Owning a share of equity; or
    • Charging interest

Using the same amount of regulatory capital, Lenders can write 57% more low deposit home loans than with LMI.

A Lender Partner can write $79m in low deposit home loans using the same equity contribution required for $50m of loans with LMI

Lender loans with LMI

Lender loans with OLU

Low Deposit Loans
(e.g., 90% – 95% LVR)
$50m
$50m
Risk Weight
(ADI or Warehouse)
55% ($27.5m)
35% ($17.5m)
Implied CET1 Requirement
(@ 14.5% Target)
$3.99m
$2.54m(-$1.45m)
Loan Volume per $1 of CET1
12.5x
19.7x
Loan Volume with $3.99m CET1
$50m
$79m
Loan Volume enhancement per $1 of equity contribution or regulatory capital
0
+57%

Partner and grow your home loan book

Ready to Scale

Capacity to support $100M's of home loans from partner banks

Tier 1 Legal Review

Validated by prudential banking lawyers and financial services experts

Backed by Leading VCs

Investments from Antler, Monash Generator, Startup Bootcamp, Techstars, and more.

No Tech Integration

Pilot ready without the heavy lifting

Backed By

Leading Australian fintech ecosystem partners

Ausbiz

Access to secured guarantees is simple and instant

1. Existing Process

Loan approved by the lender are submitted via a secure web form or integrated API.

2. Notify OLU

Requests reviewed and responses delivered in minutes.

3. Manage Online

Lenders have access to an online portal to manage requests and view committed loan records.

Interested to see if we can help your bank?

Sustainably offer reduced interest rate loans to the low deposit (<20%) segment, with less risk and improved margin.

Learn More