Can I get a home loan without a deposit?

Any general questions you might have in regards to loans and finance.
Quina
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Joined: Wed Jun 01, 2016 2:59 pm

Can I get a home loan without a deposit?

Postby Quina » Fri Jan 11, 2019 6:28 pm

Hi there,

I got recently married to my longtime girlfriend. We are renting now and we are planning to buy a property. But the issue is we only have savings of $12,000 and we are keeping it for our planned vacation to Bali early next year. So, we were really disheartened and as we could not do both. But recently, we have gone through your website and came to know that we could get a home loan even at zero deposit. It would be great if we could buy a property and don’t have to cancel our vacation. Can you confirm this and tell us more how we could get a mortgage without using our deposit?

Thanks in advance.

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Otto Dargan
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Re: Can I get a home loan without a deposit?

Postby Otto Dargan » Fri Jan 11, 2019 7:04 pm

Hello Quina.

Welcome to the forums.

Congratulations on your marriage.

Yes, you are right about getting a home loan without deposit of your own. There are various ways to achieve that:
  • Guarantor loan: You could borrow up to 105% of the purchase price and you don’t need any savings with a guarantor. For this, your parents must provide a guarantee, secured on their property.
  • Gifted deposit: Your parents could gift you 5% to 15% of the purchase price, then some lenders can consider your loan even if you didn’t save the deposit yourself.
  • Equity in another property: You can use your existing equity as a deposit if you own a property already and don’t require savings at all.
  • Personal loan as a deposit: If you have a high income and good credit history, you can borrow up to 95% of the purchase price and borrow the rest as a personal loan.
If you have a small deposit of your own but don’t want to use it towards buying a property then the first two options can be useful for you. Specifically, a guarantor loan will help you avoid Lenders Mortgage Insurance (LMI) and borrow more than 100% of the purchase price.

You can have a look at our no deposit loan calculator to work out whether you qualify for a home loan without a deposit. It's quite reliable as the calculator takes into account the purchase price of the property that you are looking to buy and your financial situation as well.

You can fill our online enquiry form or give us a call on 1300 889 743 to enquire more about no deposit home loans.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Quina
Posts: 13
Joined: Wed Jun 01, 2016 2:59 pm

Re: Can I get a home loan without a deposit?

Postby Quina » Fri Jan 11, 2019 8:30 pm

Wow, thanks a heap for the confirmation. My parents don’t own property but my partner’s parents have two properties. Hope it’ll work. Can you tell me more about how a guarantor loan works?

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Otto Dargan
Mortgage Specialist
Posts: 7237
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: Can I get a home loan without a deposit?

Postby Otto Dargan » Fri Jan 11, 2019 9:41 pm

Hi Quina,

Yes, of course, it’ll work. It’ll be much easier if they don’t owe anything in that particular property.

Your guarantor will provide a guarantee for your home loan which is secured on their property. In most cases, this is your parents assisting you to buy a home.

Guarantors have a fixed liability and can only be pursued for the agreed guaranteed amount, making this a more secure option. The guarantee can be secured by either their property or a term deposit.

They do not have to make the scheduled loan repayments and the guarantee can be released upon request if, at a later date, the borrower meets standard bank criteria and the bank agrees.

Also, we can be reached on 1300 889 743 or you can fill in our free assessment form to see if you qualify for a guarantor mortgage or not.

Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts


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