Skip is a non‑bank Australian home‑loan lender that offers low‑deposit mortgages with as little as a 2% down payment, eliminating lenders mortgage insurance and ongoing fees. It provides variable‑rate home loans for first‑time buyers, existing owners, and investors, supporting purchases, refinances, and cash‑out options up to 98% loan‑to‑value ratio. Revenue is generated through interest spreads on the loans, with a focus on low upfront costs and fast digital approvals.
Funding
Funding not disclosed
Founders
Product
Problem
Australian homebuyers often lack sufficient savings for a 20 % deposit, forcing them to incur lender‑mortgage insurance (LMI) and high upfront fees, which increase the total cost of homeownership and limit access to the property market. Traditional lenders also impose application, annual, and early‑repayment penalties that reduce flexibility for borrowers with modest deposits.
Solution
Skip provides a non‑bank, Australian‑licensed mortgage platform that offers variable‑rate home loans with loan‑to‑value ratios up to 98 %, effectively eliminating LMI and associated upfront costs. The product suite includes an Ultra‑Low‑Rate and a Low‑Rate option, each structured as a split loan (primary ≤ 80 % LVR plus a secondary tranche) to deliver competitive pricing across the full LVR spectrum. Borrowers can secure fast online pre‑approvals, enjoy unlimited free pre‑payments and a free online redraw facility, and avoid application, ongoing or annual fees. All loan management is delivered through a digital portal and mobile app, enabling end‑to‑end processing, real‑time status updates, and secure document exchange. By partnering with global and local funding institutions, Skip can underwrite high‑LVR loans at lower cost while maintaining regulatory compliance and risk controls.
Target Audience
The service targets first‑time homebuyers and young families with deposits as low as 2 %–5 %, as well as investors and existing homeowners seeking high‑LVR refinancing without LMI.
Features
- Loan‑to‑value ratios of 85 %–98 % with zero LMI and no equity‑sharing requirements
- No application, annual, or ongoing fees; only a capitalised rate‑reduction fee on Low‑Rate products
- Unlimited free pre‑payments and a free online redraw on the primary loan component
- Split‑loan architecture (primary ≤ 80 % LVR + secondary tranche) to optimise interest rates across high LVRs
- Fully digital application, pre‑approval, and borrower portal with real‑time status tracking
- Variable interest rates (Ultra‑Low‑Rate and Low‑Rate) disclosed with comparison rates for transparency
- Integrated valuation and settlement fee handling (fixed $395 each) included in the loan package
- Compliance with Australian Credit Licence (ACL) and end‑to‑end data encryption for security