Another Way to Get a Home Loan

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Dear All, 

Buyers are often told that saving a deposit is just “part of the process.”


But imagine another way to get a home loan “5‑10‑85 Home Loan” —
buyers contribute just 5% upfront, defer 10% interest‑free, and secure a standard home loan at 85% LVR.

What you have now in savings may be enough: No loopholes. Just a smarter, more achievable way to buy a home.

 

Introducing the 5-10-85 Structure (Powered by AffordAssist)

While the “5-10-85 Home Loan” may sound like an exciting new product, there is no evidence of it being marketed as such yet — but regardless of the label, this structure already exists through AffordAssist an Interest-Free Deferred Deposit Solution.

Here’s how it works:

5% — The Initial Contribution
The buyer contributes a 5% part-deposit in cash, a far more achievable level than traditional higher deposit requirements.

Where possible, your cash deposit may be sourced from your KiwiSaver account. The 5% is used for illustration purposes — it is not a fixed minimum or maximum. In practice, the initial contribution may vary depending on the scenario and, in some cases, could be as low as $1,000

10% — The Interest-Free Deferred Deposit
Instead of saving the remaining 10% (which could take years), buyers defer it through AffordAssist:

  • Interest-free
  • Flexible term (1 to 10 years) and amount (up to 15%+ of the property value)

This removes one of the biggest barriers to home ownership: saving a full deposit.

85% — Standard Home Loan LVR
With the 5% + 10% deposit in place, the buyer can apply for a standard 85% LVR home loan, paired with AffordAssist, keeping lenders well within normal risk settings — no adjustments or increased exposure required.

AffordAssist’s industry-leading governance process considers three interconnected aspects of a home loan structure, each essential to building long-term financial resilience and generational wealth:

    1. Access — A flexible deposit solution, buy with as little as $1,000
    2. Borrow Less — Borrow smarter, save interest, and build equity faster
    3. Safety — The ability to exit

Home loans paired with AffordAssist can help committed applicants.

Read related article: When Housing Affordability Becomes a Social Enterprise Outcome

 

The affordability barriers are solved, not ignored, and this approach can even improve lender risk requirements. AffordAssist proven, industry-leading governance and core service fundamentals may be likened to Credit Risk Transfer (CRT), thus positioning the service as a viable home loan deposit solution for a lender.

 

What’s Not Required

One of the most powerful aspects of the AffordAssist structure is what it removes:

  • No reliance on the “Bank of Mum and Dad”
  • No need for shared-equity arrangements
  • No need for high risk alternative property strategies
  • No need to take on unsustainably high LVR structures
  • No need to wait years to build a traditional deposit

 

The 5-10-85 Home Loan Structure Already Exists

“If you are working, actively saving, disciplined, and committed, AffordAssist’s interest-free deferred deposit solution, with as little as $1,000, can support you today.”

Ask us how.

 

Regards

AA

 

B2B – AffordAssist facilitates and oversees the governance process. Are you a mortgage broker, lender, developer, real estate agent, affordable housing advocate, or housing minister? We welcome your collaboration. Join us in our mission to expand access to home ownership. Together, we can make a lasting impact.

#HomeLoans #HousingAffordability #FirstHomeBuyers #DepositSolutions #AffordAssist #InterestFreeDeposit #DeferredDeposit

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