You can buy a home in Australia without spending years saving up for a deposit. Most lenders do expect borrowers to deposit around 5% to 20% but there are strategies that allow eligible borrowers to get loan approval without a deposit.

Lenders still want to reduce risk. So, instead of relying on the savings, they assess whether risk can be offset through a guarantor, existing property equity or another form of security.

Your goal as a borrower, therefore, is to understand the option that best suits your circumstances. It can help you enter the market sooner and without waiting years to build a deposit.

What Is A No-Deposit Home Loan?

A no-deposit home loan (often called a 100% home loan) allows you to borrow the full purchase price of a property without a cash deposit. No-deposit home loans are not like standard home loans in the sense that approval doesn’t depend on how much you’ve saved. Instead, lenders require a different form of security, which can be:

• a family guarantor
• equity in another property
• in limited cases, another acceptable security arrangement.

It’s important to understand that “no deposit” doesn’t necessarily mean “no costs.”

Depending on your circumstances, you may still need to pay expenses such as legal fees, inspections or government charges unless these are also incorporated into the loan.

How Can You Buy A House With No Deposit?

There are two main ways Australians purchase property without a deposit.

A Guarantor Home Loan

A guarantor home loan allows an immediate family member to use the equity in their property as additional security for your loan. This can allow you to borrow up to 105% of the property’s value, covering:

• stamp duty
• legal costs
• the purchase price
• other purchasing expenses.

One of the biggest advantages is avoiding Lenders Mortgage Insurance (LMI). Normally, borrowing above 80% LVR means paying LMI. With a guarantor structure, lenders generally waive LMI because the guarantee reduces their overall lending risk.

Requirements

To qualify:

• they have sufficient usable equity
• they’re willing to provide a limited guarantee
• they receive independent legal and financial advice.
• your guarantor is usually a parent or immediate family member

As your loan reduces and your property’s value increases, you may be able to remove the guarantor entirely. Read our complete Guarantor Home Loan Guide for full eligibility requirements.

Use Existing Property Equity

If you already own property, your existing equity may replace the need for a cash deposit.Rather than saving another deposit, you can refinance your current property and use available equity to fund your next purchase. This strategy is commonly used by:

• investors
• upgraders
• homeowners purchasing a second property

Depending on the lender, refinancing may also qualify for cashback offers or other incentives.

Who Qualifies For A No Deposit Home Loan?

No-deposit lending isn’t restricted to first-home buyers. Depending on the loan structure, eligible borrowers may include:

• first-home buyers
• owner occupiers upgrading homes
• investors
• previous homeowners returning to the market.

Because lenders are financing 100% of the purchase price, they’ll assess your application more thoroughly than a standard loan.

Guarantor Home Loan vs Using Equity

You can use our no deposit loan calculator to find out which options you qualify for. Each option might have different eligibility criteria for approval.

What Are The Pros and Cons of No Deposit Home Loans?

Getting a home loan without a deposit has massive benefits, but it also carries unique risks. For example, borrowing 100% of a property’s value increases your Loan-to-Value Ratio (LVR), which lenders view as high risk.

Here is a quick comparison of the advantages and disadvantages of no deposit home loans:

How To Apply For A No-Deposit Home Loan

Because 100% lending isn’t available with every lender, choosing the right lending strategy before applying can improve your chances of approval. Our mortgage brokers help you identify suitable lenders before an application is submitted, reducing unnecessary credit enquiries.

Step 1 – Free Assessment

We assess income, borrowing capacity, credit history, guarantor eligibility, and available equity.

Step 2 – Prepare Your Documents

Gather your income documents, identification, bank statements, and guarantor paperwork (where applicable).

Step 3 – Secure Pre-Approval

We negotiate with suitable lenders and obtain pre-approval so you know your purchasing budget.

Step 4 – Find Your Property

Once pre-approved, you can confidently search for properties that meet lender requirements.

Step 5 – Formal Approval & Settlement

We coordinate with the lender, conveyancer and guarantor (if applicable) until settlement is complete.

What Are The Best Alternatives To No Deposit Home Loans?

If you don’t qualify for a no-deposit loan, several low-deposit alternatives may still help you buy sooner.

Government Home Guarantee Scheme

Eligible buyers may purchase with just a 5% deposit—and some single parents may qualify with as little as 2%. The government guarantees part of the loan, meaning eligible borrowers can avoid paying LMI.

First Home Super Saver Scheme (FHSSS)

Eligible first-home buyers can make voluntary super contributions and later withdraw them towards their deposit.

Gifted Deposit

Many lenders accept genuine gifts from parents or close family members as part of your deposit. Some lenders still require evidence of genuine savings, depending on policy.

High-LVR Home Loans

Many lenders allow borrowing above 80%.

Depending on the LVR, LMI may apply unless the lender offers an LMI waiver or another exemption.

Personal Loan For A Deposit

Some borrowers use a personal loan to fund their deposit. This option is heavily restricted because lenders must assess your ability to repay both loans.

Vendor Finance

Under vendor finance, the seller effectively becomes the lender. While this can help buyers who don’t qualify for traditional finance, interest rates and contract terms are usually less favourable, making legal advice essential before proceeding.

Helpful Tip

We currently have a lender offering up to 98% (inclusive of LMI) with just a 2% deposit plus purchasing costs. This option is available for both owner-occupiers and investors and isn’t limited to first-home buyers. Call 1300 889 743 to find out whether you qualify.

Helpful Tip

We currently have a lender offering up to 98% (inclusive of LMI) with just a 2% deposit plus costs.

This offer is available to owner-occupiers and investors, and it’s not limited to first-home buyers.

Want to know if you’re eligible? Call us on 1300 889 743 and we’ll walk you through it.

Final Word

Buying without a deposit is possible, but the right solution depends on why you don’t have a deposit in the first place. Someone with supportive parents may be better suited to a guarantor loan, while an existing homeowner could unlock equity instead. If neither option applies, a low-deposit loan or government scheme may be the more practical pathway. Understanding these alternatives before applying can help you choose a strategy that gives you the strongest chance of approval.