1300 889 743

Due to the global financial crisis (GFC), lenders no longer offer no deposit home loans.

The days of borrowing 100% of the purchase price without any proof of savings are simply gone!

However, you can still get approved for a 100% home loan, subject to suitability, if you get a little creative or if you have help from your parents!

Five ways to get a no deposit home loan.


No deposit home loans don’t exist anymore so you’ll need a deposit to qualify for a home loan.

However, there are alternative options such as using a borrowed deposit to qualify. Discover if you can use one of the following options.

OPTION 1: 105% guarantor loan

This is the best way to buy a property with no deposit!

  • You can borrow 105% of the purchase price.
  • You don’t need any savings.
  • Your parents must provide a guarantee, secured on their property.

You can learn more about this option on our guarantor mortgage page.

OPTION 2: A gift

  • 60% of first home buyers receive help from their parents.
  • Can your parents gift you 5% to 15% of the purchase price?
  • Some lenders can consider your loan even if you didn’t save the deposit yourself.

You can read more about this option on our no genuine savings page.

OPTION 3: Personal loan as a deposit

  • Do you have a small 3% to 5% deposit?
  • Do you have a very high income?
  • You must have no debt or only a small amount of debt, such as a car loan or a credit card, in order to qualify.
  • You must have a clear credit history.
  • You can borrow up to 95% of the purchase price plus a personal loan.

This isn’t suitable for everyone. We recommend that you talk to your parents about a guarantor loan before you consider this option.

Some lenders will allow a borrowed deposit and do not require genuine savings but you may need some funds of your own to cover stamp duty and other expenses.

You can read more on our personal loan as a home deposit page.

Call us on 1300 889 743 enquire online and we’ll let you know if you qualify.

OPTION 4: Equity in another property

  • Do you already own a property?
  • You can use your existing equity as a deposit.
  • If you have sufficient equity then you don’t need any savings at all!
  • We can value your property for free right now!

Simply give us a call on 1300 889 743 or enquire online and we’ll let you know if you qualify.

OPTION 5: Use your superannuation

This is a complex strategy that requires financial advice before you begin.

  • Do you have over $100,000 in superannuation?
  • You can set up a self-managed superannuation fund (SMSF) to buy a property.
  • The property must be for investment purposes, not to occupy.
  • You can borrow up to 80% of the purchase price.

With this method, you do not need to have any savings yourself because your superannuation will act as a deposit.

Discover if you’re eligible on our buying property in a SMSF page.

What if these options don’t work for me?

Unfortunately, there are no lenders in Australia that offer no deposit home loans other than the above options.

The best way for you to get a 100% home loan is to save a deposit of your own.

Following these tips will help you to qualify:

  • Prepare to buy: Use our prepare to buy program to prepare to qualify for a mortgage.
  • Save a 5% deposit: Save 5% of the purchase price in a bank account in your name. Make regular contributions.
  • Don’t change jobs: When you are borrowing close to 100% of the purchase price, the lenders like to see that you are stable and that you have been in your job for some time.
  • Pay your bills on time: If you don’t have much of a deposit then the lender will lose a significant amount of money if you can’t make the repayments. For this reason, they look very closely at your credit file and rental history.
  • Stay in touch: Our mortgage brokers specialise in guarantor and 95% home loans. You can ask them a question on our mortgage forum or like us on Facebook so you can get in touch with us when you are ready to apply for a loan.

Need to know the best option for you?
Talk to our experts and get a free assessment.

How do I apply for a no deposit loan?


Do you qualify for a mortgage with no deposit and no savings?

As your specialist no deposit mortgage broker we are here to help!

Contact us on 1300 889 743 or enquire online and we can then discuss your situation with you to see if no deposit finance with the help of a guarantor is suitable for you.

We can also help you to prepare to apply for a home loan in the future if you don’t qualify for a loan at the moment.

If you’re eligible then we can usually organise an approval over the phone with one of the lenders on our panel.

What is the lending criteria for a no deposit loan?

Lenders apply very stringent credit guidelines when assessing no deposit home loan applications.

  • Credit history: You must have a perfect credit history with Veda Advantage. No Australian lenders will make an exception to this policy if LMI approval is required.
  • Repayment history: You must have been paying all of your current debts such as credit cards, personal loans and rent on time.
  • Location restrictions: You must be buying in a major town, capital city or regional centre. One of our lenders is willing to consider anywhere in Australia but most lenders are very strict about the location that you are buying in.
  • Property type: You must be buying a standard type of property such as a house, townhouse, unit or vacant land. As a general rule, unusual or unique properties are not acceptable. We have been able to lend for duplexes, inner-city apartments, studios, bedsitters and even company title units in the past for customers of ours that have a good income. If you are not sure then call us and we will let you know.
  • Stable employment: Your employment situation must be stable and ongoing.
  • Income: Your income must be high enough that you can easily service the loan. You cannot borrow to your limit with a high LVR mortgage.
  • Professionals: Professionals such as accountants, lawyers, doctors, vets, nurses, government employees and teachers are highly sought after by lenders because they are well known to be a lower risk than people in other professions. You don’t need to be a professional to get approved but it helps!

Not sure whether you will be approved for a 100% home loan?

Call us on 1300 889 743 or enquire online today to find out!

Who can borrow 100%?

Buying a house to live in: First home buyers and other people buying an owner occupied house make up the majority of people applying for 100% home loans in Australia, with the help of a guarantor.

They are looked at favourably by the banks because they tend to look after their property well and are more likely to pay their loan on time. Comparatively speaking, they are lower risk borrowers.

Investors: Investors are eligible for no deposit finance if they have a guarantor but they may be required to meet more stringent criteria due to the higher risk their application poses to the banks.

In some cases this requirement can be waived, for example, for someone who lives with their parents and wants to buy an investment property as their first property rather than a place to live in.

Investors can often reduce their loan to 95% of the property value to have a wider choice of lenders.

Do I need any savings for a no deposit home loan?

In all other situations, you would need savings to get approval for a home loan but there are ways around this if you have a guarantor!

  • First Home Buyers: As a general rule, if you are a first home buyer, your First Home Owners Grant (FHOG) should cover most, if not all, of the costs associated with buying a property.
  • Second Home Buyers: Due to the costs of stamp duty and conveyancing, non-first home buyers usually need to have a minimum of 5% of the purchase price available unless they have a guarantor. A deposit sourced from a gift from your family or from selling an asset is acceptable for some banks. It is quite common for second home buyers with some savings to use the 95% plus credit card option mentioned above to cover the cost of stamp duty.
  • Investors: Because investors do not receive the government grant or stamp duty exemptions, they will need a minimum of 9% of the purchase price to be able to complete the purchase, unless they have a guarantor. That amounts to 5% to cover the deposit and a minimum of 4% to cover the stamp duty and purchasing costs.
  • Construction: You can build a house without any savings using a no deposit construction loan if you are a first home buyer and have a guarantor. Due to the nature of construction, we recommend that you have a small buffer of around $5,000 just in case you go over budget.

Why is everyone using a guarantor loan?

For Borrowers

No deposit loans have become an attractive option for many people who do not have the funds to contribute towards a mortgage.

Some of the main benefits of guarantor loans include:

  • No savings are needed.
  • You can borrow the full purchase amount plus the money needed for stamp duty or any other associated costs.
  • Lenders mortgage insurance (LMI) is not required!
  • Both investors and owner occupier buyers can take advantage of this product.
  • In many cases, the interest rates are exceptionally low.

For guarantors

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.

Normally, this is when the borrower owes less than 80% of the value of their property.

Find out more

Have a read of our guarantor loan page for more information.

You can also call us on 1300 889 743 or enquire online to get in touch with our mortgage brokers, all of whom specialise in no deposit home loans.

Are no deposit loans available Australia-wide?

Most no deposit lenders have location restrictions or other postcode restrictions on 100% home loans outside of capital cities and major regional centres. If you’re buying in Sydney, Brisbane, Melbourne, Adelaide, Perth, Darwin, Canberra or Hobart then you should have no problem.

Common regional areas that are accepted by all lenders for no deposit loans include Wollongong, Queanbeyan, Newcastle, Wagga Wagga, Tamworth, Coffs Harbour, the Gold Coast, Sunshine Coast, Cairns, Toowoomba, Townsville, Ipswitch, Bundaberg, Ballarat, Bendigo, Albury / Wadonga, Freemantle, and Geraldton.

What if you are outside of these areas?

One of our lenders offer no deposit home loans if you have a guarantor for any location in Australia!

How high will my interest rate be?


Not as high as you think! No deposit finance with the help of a guarantor is often available at competitive interest rates and even application fee waivers for some loans.

We are able to obtain professional package and basic loan discounts through several of our lenders.

Did you know that some lenders have very little appetite for high LVR home loans? A high LVR loan is any loan which is for more than 80% of the property value.

The secret to getting a good interest rate is to apply with a bank that is actively seeking this market segment.

As mortgage brokers, we know which lenders are aggressively marketing to 95% and 100% borrowers.

Please contact us on 1300 889 743 or enquire online to find out how we can help you.

How can I get a low interest rate?

Sometimes it seems that every bank and non-bank lender in Australia has very similar interest rates and fees.

However, for 100% home loans, some banks are way ahead of the pack, with interest rates unmatched by their competitors. This is because some banks are interested in lending over 90% of the property value, whereas others aren’t.

In particular, going for a guarantor will save you a small fortune as you will not pay an LMI premium.

Our brokers are also likely able to negotiate an interest rate lower than that advertised by the banks!

Can I borrow 100% and consolidate my debts?

Yes, you can borrow 100% and consolidate your other debts such as HECs/HELP, personal loans and credit cards provided you have a guarantor that can use their property as additional security for your loan.

Currently, there are no lenders in Australia that can lend more than 100% of the purchase price with a no deposit loan that is not supported by a guarantee.

We can compare the options from our panel of lenders for you. With help from our experts you’ll get approved for the amount you need at a competitive interest rate.

Is it better to save a deposit or borrow with no deposit?

That depends on the property market you are in.

If you are in a market that is increasing in value, then more often than not it is far cheaper to borrow 100% using a guarantor or borrow 95% and pay LMI compared to waiting till you have enough for a deposit. This is because the lost capital gains end up costing you tens of thousands of dollars.

Most people find it difficult to save a deposit anyway and, after 6 months, are in the same situation as they were before. For this reason, most people prefer to borrow 100% than to save.

You can use our calculator to decide if you should buy now or save a larger deposit.

Don’t forget that Australia is not a single property market! For example, Brisbane may be increasing in value while Sydney and Melbourne remain steady.

Talk to local real estate agents to find out what is happening near you.

If you are in an area that is stable or is declining in value, then it may be better to save a 5% deposit and apply for a 95% loan if you would prefer not to use a guarantee. You can even use inheritance as a deposit for this.

Please contact us on 1300 889 743 or enquire online and we can discuss your options with you so you can make an informed decision as to when to apply for your a loan.

Do no deposit home loans have extra features?


Yes! No deposit home loans with the help of a guarantor are available with almost all loan features including:

  • Professional package discounts.
  • Waived application, valuation and monthly fees.
  • Fixed rates (1 year, 3 years, 5 years, 10 years and 15 years).
  • 100% offset accounts.
  • Unlimited extra repayments (variable rate loans only).
  • Redraw facilities.
  • Interest only repayments (up to 15 years).
  • Weekly, fortnightly or monthly repayments.
  • Vacant land, building or construction loans.

Note that no deposit finance is not available with a line of credit loan. You have the option to switch loan types at a later date when the guarantee has been removed.

Before you undertake a comparison of different no deposit loans you should complete a needs analysis with a mortgage broker. You should consider which features will give you the biggest benefit and which you are likely to use.

Every lender has a different LMI premium

LMI is insurance that protects the lender in the event that a borrower defaults on their loan.

This is a one time fee charged when you borrow over 80% of the property value and is a significant cost associated with no deposit loans / low deposit loans.

LMI rates vary depending on the lender you choose and the amount you borrow. As a general rule, LMI for loans that are for less than $300,000 are very cheap.

LMI for loans over $500,000 can become quite expensive, at roughly 4% of the loan amount.

Because you are required to pay LMI, you only receive 92% to 94% of the property value to put towards the purchase if you were to apply for a 95% loan. That’s in spite of the fact that you actually applied for a larger percentage of the purchase price!

Some lenders allow you to capitalise the LMI premium on top of the loan up to 97% or even 100% of the purchase price. This allows you to use the full 95% that you applied for!

Please call us on 1300 889 743 or enquire online for an LMI interest rate quote specific to your situation.

Can I avoid paying LMI altogether?

Yes, you can! Innovative new loans have been created in recent times that allow you to borrow 100% without paying any LMI.

Your parents must be a guarantor for your loan in order for the LMI premium to be waived. This is not available through all lenders.

Quick start no LMI loans (withdrawn): In the past, there were 100% home loans that allowed you to have waived LMI without the need for a guarantor! The lender effectively took on the risk themselves and charged a higher interest rate to compensate. The higher interest rate usually lasted for the first 3 to 4 years and worked out to be around the same cost over three years as if you had paid the LMI. The advantage of a quick start loan is that you needed less money upfront to buy your property. Due to the global financial crisis (GFC), this product was withdrawn by the bank that offered it.

Guarantor support: If your parents, a family member or a friend can guarantee your loan then you may be able to borrow 110% or more of the purchase price without paying any LMI. Their property can be used by the bank as additional security for your loan in what is known as a family pledge, fast track or security support application.

No LMI loans: If you can come up with a small deposit then it may be possible to borrow up to 90% of the property value with no LMI. This will depend on your profession and the overall risk of your application.

Your parents may assist you by guaranteeing the loan using a 2nd mortgage on their home, behind their current home loan. The guarantee can be removed at a later date if certain lending criteria are met.

Which lenders offer no deposit loans?

A wide variety of bank and non-bank lenders offer no deposit finance with the help of a guarantor.

These lenders include:

  • ANZ
  • BankWest
  • CBA
  • Homeside Lending
  • NAB
  • Rams
  • St. George Bank
  • Suncorp
  • Westpac

Our panel of lenders tend to offer special discounts from time to time so the “best” no deposit lender changes each month.

Are there any drawbacks to no deposit home loans?

You should consider whether a no deposit solution is really in your best interests.

This is particularly true if you already have the savings you need or you’re in a good financial position and can save a deposit in a relatively short amount of time.

Although we have strong negotiation power, consider the following:

  • You have to meet stricter criteria than if you were to have a deposit or at least a larger deposit.
  • Some lenders may charge a higher interest rate, although this isn’t true with all lenders.
  • As an investment strategy, a no deposit home loan is really only suited to sophisticated investors. When building your investment portfolio, applying for too many no deposit home loans may affect your mortgage exposure limit with a given bank in the medium to long term.
  • Since you’re borrowing a larger loan amount, your regular mortgage repayments will also be higher.
  • You’re not always exempt from all bank fees and may still need some money put aside to cover application fees, lender fees, legal fees and valuation fees.

A very friendly, professional and helpful team.

The team was very friendly, professional, helpful and went out of their way to get the right loan that was suitable for us.

I recommend this service for those who find it very hard to purchase a property going directly to a bank.

Thank you Home Loan Experts, you have finally given my family and me the opportunity to own a beautiful home.

Denise H, Epping VIC

Our popular pages on no deposit home loans


Guarantor home loans.

The ultimate no deposit home loan. Read more


Guarantor loan calculator.

Can I get approved? Read more


No savings history.

What if I didn’t save my deposit? Read more


95% home loans.

Can I get a discounted rate? Read more


90% home loans.

Let us find you a great deal. Read more


85% home Loans.

Can LMI be waived?
Read more


Home buyer centre.

Where you’ll find our calculators and loan guides. Read more


No genuine savings

Finally! Home loans without any genuine savings. Read more


First home buyer seminar

Secrets that every first home buyer should know. Read more


No deposit home loan calculator

Can you buy a home without a deposit? Read more


Personal loan as a deposit

Can I borrow the deposit for my home? Read more


Enquire online

Have questions? Our brokers have the answers! Read more

  • Sue Spencer

    I have about $5000 in savings, full time teacher for 18 years and earn 90000. No credit card debt or other loans. Would I be eligible for a no deposit loan? Looking at a house for $240000

  • Hi Sue,

    Yes you may qualify for a couple of different options. If your parents own a property then a guarantor loan is the best option as you’ll get a sharp rate and waived LMI https://www.homeloanexperts.com.au/guarantor-home-loans/

    If that isn’t an option that you would likely qualify for a personal loan as a deposit with one or two of our lenders. We’d need to see a 12 month rental history to help us to get you approved. You’d then focus on paying off the personal loan as quickly as possible to avoid paying much in interest, This strategy actually is cheaper than it sounds. Your high income and stable employment would make this a suitable option for you. Please contact us if you’d like our help https://www.homeloanexperts.com.au/free-quote/

  • Channan


    Is it possible to use your superannuation as a deposit for a home loan? I am not a first home owner been renting for a number of years now currently paying $520 a week rent. Have no deposit. Would I be eligible for a no deposit home loan?

  • Hi Channan,
    You can buy a property in your self managed super fund if you have at least $100,000 – $200,000 in super. As a general rule the best way to buy your first home is with a guarantor https://www.homeloanexperts.com.au/guarantor-home-loans/

  • Louise

    Hello, This is our situation – partner and I have both come from other relationships/divorce 3 yrs ago and with that came debt ( mainly ccards) approx. 60K in total. I ear 82K gross, he earns 50K gross. We do not have a deposit – very hard to save just paying rent and min ccard repayments. We were thinking of 2 options to buy a house approx. 550-600K.1 – my parents would get an overdraft on our behalf to pay the 60K, and we would pay this off over a few years, and then they would be guarantor ( they have an investment property worth about 800k, with 80K overdraft on this) for us for 105% loan which would cover new home +costs. OR 2 – we have noticed some lenders have 110% loan for debt consolidation – so if we looked at a house worth 600k we would borrow 660 – and pay off large amt of the cards ( some debt remaining) Either options above for us – we are in a better position financially as the ccard min repayments + rent are almost double what this mortgage would be … look forward to your thoughts and advice and base on this would look to pursue further assistance with the process etc from you. Thanks Louise

  • Hi Louise,
    Firstly sorry to hear about what’s happened to you and your partner. I hope things improve for you soon.
    Yes you can buy a home and consolidate your credit card debt. To do this we’d want to see that:
    1. Your rent has been paid on time
    2. Your credit cards are paid on time
    3. We’d want to talk to your parents and confirm they are comfortable with the guarantee
    4. We’d have a shorter term on the part of the debt that is to consolidate your credit cards to make sure that this is paid off relatively quickly.
    5. A commitment from you and your partner not to take out new credit cards until the guarantee is removed.
    Typically the maximum debt consolidation is 5% of the purchase price however it can be more in some circumstances. In particular if your parents borrow in their name to repay the credit cards and then we approve the guarantor loan. However we’d still need to see the above 5 points to confirm that buying a home doesn’t put you or your parents at risk.

  • Sarah


    My partner and i are both full time workers, both looking at our first home and both have good credit ratings. We have paid off both credit cards, but still have a car loan. Annual income between us is 95k, but as we rent 400/wk in perth we only have 10k in savings.

    We have guarantors lined up to help us get a house and we would rather be paying our own mortgage than someone elses. Been rentinhlg for 3 years and never missed a payment. Would we be eligible for the 0 deposit home loan? Cheers

  • Hi Sarah,
    Yes you’d likely be eligible with a guarantor loan. It would depend on the size of the personal loan and some other factors such as the situation your guarantor is in. Please contact us and we’ll let you know your options https://www.homeloanexperts.com.au/free-quote/
    Just be careful as construction plus guarantor loans are very complicated. Expect delays and headaches. I’d recommend that you buy a complete new property rather than build a property as you get the same grants and avoid all of the hassles.

  • Drazen

    I’m full time employed, earning 60k per annum, my wife is unemployed atm, we have two kids. Our saving is 27000$, but we have credit card debt around 6500$ and personal loan, 10000$ still to repay. Is there any chance for us to get a loan to buy a house prized up to 370000$?
    Thank you very much
    Ps We are a first home buyers.

  • Hi Drazen,
    If you receive Family Tax Benefits A & B then you may be eligible. We’d need a full application and to look at your borrowing power to know for sure.
    Also it depends which state you’re in. A first home owners grant will help to finance the costs like stamp duty or you may have no stamp duty. Just depends on where and what you are buying.

  • Drazen

    Thank you for the very fast reply.
    Yes we are receiving A&B family tax benefits, we would like to buy a house, established one, in Melton, Victoria.

  • You may receive a 50% reduction in stamp duty as a first home buyer.
    Buying an established home would mean you don’t receive a first home owners grant. That’s ok, often new homes have inflated purchase prices so I wouldn’t focus on just getting a grant.
    We’d need to complete a full assessment to see if you are eligible. If you aren’t eligible we’d give you some tips to help you qualify in the future.
    If you would like our help then please contact us here https://www.homeloanexperts.com.au/free-quote/

  • Note that a guarantor loan would mean that you avoid LMI and can consolidate your debt when you purchase. This is cheaper and will free up your cashflow. https://www.homeloanexperts.com.au/no-deposit-home-loans/guarantor-loans/

  • Drazen

    Unfortunately I have no one to be my guarantee…

  • Luciana Isabella Sposaro

    My situation is I’m a mum of 3 I’m 31 years old I’m solely on centerlink payments weekly family tax and disability pension..my credit history isn’t great due to old debts. I get declined for small things. I really need a home and I’m wondering is it even possible in my situation Iv looked everywhere. Nobody’s willing to give me a fair go I don’t currently have a deposit.

  • Hi Luciana
    Unfortunately we wouldn’t be able to assist in this situation. You’ll likely have to wait a few years and save a deposit to be eligible. You may consider buying with a family member who has a higher income and a deposit or real estate and then this may be possible.

  • Joanna raleigh

    My husband and i are planning to build our first home but we don’t have the deposit. Iam unemployed and on centrelink but he’s annual income is 140k and we only have a car loan to pay and we’ve been renting for too long and our records are clean. What should we do next please we need your advice .


  • Hi Joanna,
    The best way forward is with a guarantor loan as it’s got a low rate, you don’t need a deposit and getting approved is easy https://www.homeloanexperts.com.au/guarantor-home-loans/
    If that doesn’t work then you may be able to buy a small property with a personal loan as a deposit however you may find that the car loan greatly reduces your borrowing power. In that case it’s best to save and wait.

  • Jamie

    We have been renting for quite a longer time now ($560/w) and want to buy our first home ($400-550k). However, we don’t have a deposit saved yet. I have very stable employment on about $100-110k, depending on bonuses. We have about $19k in credit cards, no other loans. Family is overseas, so no guarantors. Our credit score is very good. Would it be possible for us to use a personal loan for the deposit?

  • Hi Jamie,
    It would depend on which state you live in. Our system says you are in NSW. If so then buying a new property for $550,000 or less you’d receive a $10,000 grant and waived stamp duty. This with a small personal loan may get you over the line.
    You’d need to buy a new property NOT build a house as the lenders that can assist with a personal loan as a deposit don’t accept construction loans.

  • Mary Magee

    Hi, We have sold our owner occupied home and are looking at buying an investment property. We have been told by our accountant that we can borrow 100% of the purchase price by putting our $200,000 that we made on the sale of our property into an offset account and if we did this there would be no mortgage insurance payable. Is this correct? Thank you (PS – we are in Victoria)

  • Hi Mary,
    That’s not quite right. The bank can use a term deposit as security for a loan but not funds in an offset account. A bank lends up to 80% of the property value without LMI.
    So for example say that you purchased a property for $1m then the bank would lend 80% of the value of the home and you then put $200,000 in a term deposit (not an offset account) then the bank could lend 100% on this, which means that you have borrowed 100%.
    Obviously this is just the bank lending you your own money. So people only do this as a short term solution e.g. they later replace the cash with other security. Alternatively you could use other property that you own as additional security.

    I’d recommend that you keep it simple and borrow 80% or 90% depending on your needs. 80% would be better if you want to avoid LMI. 90% would be better if you want to keep LMI relatively low but still maximise your tax deductions. Any extra funds can be put into offset.

  • abcdeleah

    My parents would like to purchase their first home in NSW. They have been renting for many years. I own my own house and question whether I could be their guarantor for their first purchase as they do not have a deposit saved. My dad is unemployed and on a Centrelink pension and my mum works 2 days a week maximum and is on a carers payment. My dad has a credit card debt but other than that there are no debts and they always pay their rent and bills on time. Can they look at purchasing a unit between 490k- 550k ?

  • abcdeleah

    Apologies I do also have another question. With an owner occupied home do both owners need to reside in the property or can one of them be living overseas and the other residing in the property?

  • Hi
    The main problem would be that they could not prove that they could afford the debt. You’d need to be on title with them as an owner and you would need to assist them with repayments for this to work.
    In regards to the FHOG yes one owner must live in the property, the other can be overseas.

  • abcdeleah

    Thank you

  • Rebecca

    Hi we are a family of five, me being a stay at home mum and my husband is sole earner, earning $77,000 per year. We have no dept and no deposit. Currently we are paying $550 a week in rent, how can we buy a house for around $480,000 – $500,000? Please help we are sick of giving our money to rent, which means we can’t save. We are in NSW. Thank you Rebecca.

  • Hi Rebecca
    You may qualify for a guarantor loan if your parents or your husband’s parents own a property in Australia https://www.homeloanexperts.com.au/guarantor-home-loans
    Otherwise it’s unlikely that you’d be able to buy a property.

  • Karl

    What happens if my parents are deceased and no one wants to go guarantor because they are worried about loosing their home?

  • Hi Karl,
    Then you’d need to save a deposit. There’s not many other options. If you have a high income and no debt then you can use a small personal loan to top up your deposit if you’re almost there.

  • Aleks

    Hi There, I own a property at the moment, owing approx $685k, current value is approx $1.25mil. I have read up on using equity to purchase another property, I’m wanting to buy an investment for up to $700k but don’t have too much at all saved. I was wondering when it comes to using equity, would the repayments on my current property go up a lot? Husband earns approx $150k per year and I earn $55k per year. A little confused at this stage because I don’t want my current repayments to go up signficantly. We are in NSW. Thank you!!

  • Hi Aleks
    Your current home loan would be for the same amount with the same repayments. We’d add a 2nd loan which would be for 105% of the purchase price of your investment property which would cover the purchase price plus costs. That way you get the maximum tax benefit and you can use your savings to pay off your home loan.
    With some of our lenders if your loan is secured by both properties (easy to do) then they give you discounted home loan rates for the entire amount.
    In terms of borrowing power we can complete an assessment for you and work out what a comfortable amount is for you to borrow. If $700k is too much then it’s ok to buy a lower priced investment instead and then you will have peace of mind.
    If you’d like our help then please contact us here https://www.homeloanexperts.com.au/free-quote/

  • Tas

    We live in Victoria and want to buy a rural property of $235000
    We have a combined income of about $90000 with current credit card debts of $40k
    We have two kids and pay $2000 month rent
    We have no deposit and no guarantor
    My husband might be able to get a 25k loan through a friend but no savings history
    Is there anyway we can get a loan now?

  • Hi Tas
    The amount of unsecured debt would be too high. I’d recommend that you pay off some of your credit card debt before you consider this option. As a general rule you should have $10,000 or less in debts.

  • Karen

    My parents own their own home. Value $480,000. They have no debts. My father is 65, self employed. Earns around 70k. My mother works part time & is 62. They are looking to buy an investment property for their children to live in. Would they need a deposit? What would the main financial risks be for them?

  • Hi Karen,
    This is ok. They are close to retirement however they can repay the loan by selling their investment property at any time. This is known as an ‘exit strategy’.
    For some lenders this would not be ok but for others this is fine. They can use the equity in their home so they would not need a deposit.
    You can find info on borrowing while close to retirement age here https://www.homeloanexperts.com.au/home-loan-articles/retirement-age-home-loan/
    If they’d like our assistance then we can compare their bank to others and they can choose the lender that they’d prefer that can consider their situation https://www.homeloanexperts.com.au/free-quote/

  • Daniel

    Is it possible to use the first home buyers grant as your deposit? In july the amount is going upto $20k i have no savings currently paying a loan off worth 5k which will almost be gone by then.

  • Hi Daniel,
    I’m guessing you’re in rural VIC or WA where the grant has just gone up?
    It’s very rare that you can just use the grant on it’s own. It is possible in some circumstances. Having a small amount of savings yourself really helps even if it’s just $5k to $10k it will help us to get you approved. Can you get a gift from your parents or can they guarantee your loan using their property?

  • Daniel

    Yeah rural vic.
    Good to know ill get started saving.

  • Jasmine

    Currently have two investment properties and wanting to use the equity in both to buy a third. Husband works and his annual income is around the 90k mark, I do not work, we have 3 children and no other debt or loans apart from the two houses. We have budgeted the third house to be around the 400k with possible weekly rent at $380. Our bank is only willing to lend us 330k. How could we push that number up an extra 70k?

  • Hi Jasmine
    Yes this is something we can likely help with. We have access to lenders that use different methods of calculating borrowing power. We’d need a full application to confirm that you can qualify. Please complete this https://www.homeloanexperts.com.au/free-quote/

  • Bev Freitas

    Two brothers,currently earning $190,000between them annually,
    havnt any savings,Are in steady employment,,
    one will be debt free next year,
    the other is paying off a car worth $45,000,their weekly rent is $340,between them,
    Wondering how they can purchas a home of there own.
    They would be buying this between them.
    parents cant help.thankyou.

  • Hi Bev,
    Best angle is:
    – Pay off all credit card debt and personal loans. Car loans are ok.
    – Save a small deposit. Depends on the purchase price as to how much but approx 2 to 3% of the purchase price as a minimum
    – Can get a personal loan to top up your deposit as you have high incomes. It can’t be a big loan, for your situation $30k would be the likely max.
    This is hard to do and doesn’t always work. I’d strongly recommend a Guarantor Loan if your family owns property. Unfortunately you’ve said this won’t work for you so you’ll need to save some of the funds.

  • Kim


    I am planning on building. Wanting to know if I use all my savings to purchase the land & need a loan for building, will I be able to borrow 100%. Or, will I still need some savings still even though I own a land to build.


  • Hi Kim,
    The banks do two calculations.
    When you buy the land the total loan must not exceed 95% of the purchase price.
    When you go to build the total loan must not exceed 95% of the land value (usually the old purchase price) plus the cost of construction.

    E.g. if you buy land for $100,000 and borrow 80% and then build for $100,000 you can borrow the full $100,000 for construction because you put in $20,000 when you bought the land.

    Another example if you buy the land for $100,000 and borrow 95% then when you build for $100,000 you’d need to put in another $5,000 otherwise your loan would go over 95%.

    It’s a little more complicated than this due to the first home owners grant, Lenders Mortgage Insurance and because some banks don’t go up to 95%.

  • Scotty Saunders

    Hi im looking at a house worth around $165 000 its my first home dont have any deposit currently paying $360 per week rent wat are my chanced of being approved

  • Hi Scotty
    Usually lower valued homes are in remote locations which can cause lenders to reduce their maximum loan amount https://www.homeloanexperts.com.au/mortgage-calculators/postcode-calculator/
    Your best chance of buying is with a guarantor loan https://www.homeloanexperts.com.au/guarantor-home-loans
    FYI our minimum loan size is $300,000 so you may want to contact a local mortgage broker to see if they can assist instead.

  • Scotty Saunders

    Ok the house is located 30mins from Tamworth so not in a remote location

  • Hello, just wondering are there any no deposit loans available in conjunction with the DHOAS??

  • Hi Sarah,
    A guarantor loan can work with DHOAS subsidy https://www.homeloanexperts.com.au/guarantor-home-loans
    Aside from that no the other options won’t work for this loan type.

  • Hi Amie,
    With a guarantor loan https://www.homeloanexperts.com.au/guarantor-home-loans you should be able to consolidate your debts and buy a home at the same time. A word of caution is that we’d need to see a perfect repayment history on all debts and a good rental history to meet our own internal credit policies.
    If your family cannot guarantee your loan with their property then I’d recommend paying off your debts and then savings a deposit. A personal loan as a deposit would only work if you were both working so unless circumstances change you’d need to save a deposit.

  • Donna Maree Greenwood

    Hello, just wondering if you own a business can it be you guarantor?

  • Hi Donna,
    Yes a business owner can be a guarantor. However you must use real estate for the guarantee not the business itself.

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