Skip

Skip: Low-deposit home loans in Australia

Skip is a non-bank home loan lender operating in Australia that presents itself as an alternative to traditional banks for those looking to buy a home with a small deposit. The lender offers loans with a deposit from 2% and up to 98% of the property value (LVR), without requiring Lenders Mortgage Insurance (LMI) and with a low-fee structure.

According to its own presentation, Skip is an Australian Credit Licence (ACL) holder with authorisations to provide credit and credit assistance to consumers. It does not define itself as a mortgage broker or a bank, but as a non-bank lender.

Loan products and options

Skip's offering is organised around two main purposes: home purchase and refinancing. Within each, it distinguishes between owner-occupier and investor. The options include:

• Purchase for owner-occupier: variable rate with principal and interest repayments, from 6.64% p.a. (interest rate) and 6.99% p.a. (comparison rate).
• Refinance for owner-occupier: same variable rate from 6.64% p.a. and 6.99% p.a. comparison rate, with cash out option up to 98% LVR and debt consolidation.
• Purchase for investor: variable rate from 7.04% p.a. and 7.44% p.a. comparison rate.
• Refinance for investor: variable rate from 7.04% p.a. and 7.44% p.a. comparison rate, with cash out up to 98% LVR and debt consolidation.

In all cases, conditions such as the absence of LMI, the possibility of making unlimited free prepayments, the availability of free redraw (on refinancing) and no requirement for equity sharing or family guarantors are highlighted.

Key features

Skip emphasises several aspects that, according to its communication, set it apart from traditional lenders:

• Low deposit: allows you to buy with as little as a 2% deposit, avoiding the need to save the usual 20%.
• No LMI: eliminates Lenders Mortgage Insurance, which is often a high cost in low-deposit loans, and replaces it with a simpler and more affordable cost structure.
• Low fees: no application, annual or monthly fees.
• No equity sharing or guarantors: the borrower does not need to give up part of the ownership or rely on a family guarantor.
• Fast approvals: according to the company, most customers receive approval within a couple of days after completing the application.
• Australian team: it has a dedicated local team and systems that, it says, protect data and monitor the loan.

Tools for applicants

Skip's website provides users with several online calculators to estimate different aspects before applying for a loan:

• Borrowing calculator: estimates how much you can borrow based on income and expenses, using the Ultra-Low Rate product.
• Funds required calculator: calculates the total funds required to complete the purchase, including the property price, loan amount, purpose and stamp duty.
• Repayments calculator: estimates the monthly repayment based on the purchase price, loan amount and term (20, 25 or 30 years), using the current Ultra-Low Rate product rates.

These tools are for guidance only and, according to the company, do not constitute credit approval.

Customer profile and use cases

Skip targets those looking to buy their first home, move home, invest in property or refinance an existing loan. Among the scenarios it mentions are buying with a 2% or 5% deposit, refinancing to get a better rate, debt consolidation and cash out. The company also refers to profiles who want to avoid LMI and access property without waiting years to save a larger deposit.

Testimonials and rating

The site includes customer testimonials that highlight the speed of the process, clear communication and financial savings. One case mentions saving AUD 21,000 by avoiding LMI, funds they used to build a pool. The company shows a rating of 4.7 on Trustpilot.

Contact and coverage

Skip serves customers in Australia and offers support via its support email. The company does not provide a physical address in the available information. Its focus is on the Australian mortgage market, with a presence in states such as New South Wales, Victoria, Queensland, Western Australia, Australian Capital Territory, Tasmania and South Australia, according to the options in the loan calculator.