Deposit gap funder OSQO Capital has opened for business, inviting applications from home buyers who want to bring their home loan deposit up to 20 per cent. OSQO, whose shareholders include lenders mortgage insurer Helia, has developed a platform that raises funds from a range of sources, including private investors, to lend to home buyers. Borrowers must have a minimum deposit of 5 per cent to be eligible for an OSQO deposit gap loan.  The interest rate is variable, benchmarked to the borrower’s home loan interest rate and payable monthly. The borrower can repay at any time. Loans have a 30-year term and are structured as interest-only for the first 10 years. After that, borrowers have to repay accrued “property growth interest”, which is based on the appreciation in the property’s value. OSQO will pay investors quarterly interest at prevailing mortgage rates. It claims its loan works out be cheaper than the cost of lenders mortgage insurance would be if the borrowers took out a loan with a loan-to-valuation ratio over 80 per cent. It plans to advise home buyers on the best time to refinance and pay out their OSQO loan.