You need to have a guarantor for this type of loan! Click here to learn more.

Build your home with no savings!

Did you know that no deposit home loans can now be used to finance construction?

Previously, 100% home loans were only available for established housing

However, thanks to innovative new loan types, you can now borrow to purchase and build on vacant land.

Best of all, the interest rates for a construction loan are usually no higher than any other type of no deposit loan!

Do I need any savings to buy a house and land package?

Most house and land packages can be financed up to 100% of the total cost of the land plus the builder’s costs for construction.

No deposit house and land packages are a simplified option if you don’t want to go through the hassle of organising a builder, house plans and council approval.

Be careful as some packages are overpriced and others offer cash backs that appear to be a discount but are actually just marketing hype.

Are there 100% land loans?

No deposit land loans are available on the condition that you’re building on the vacant land within one or two years.

In some cases, we can negotiate with the lender to waive the requirement to build.

Land loans are very location dependant.

If you’re not buying in a capital city or regional centre please call us on 1300 889 743 or complete our free assessment form to find out if your location is accepted to the bank.

Are no deposit loans available for renovations?

You can borrow 100% of the cost of the renovation or addition to an existing house.

The amount you can borrow will depend on when you’re renovating:

  • You already own the house: If you own the house already and intend to knock down and rebuild or carry out significant renovations then this is possible using a no deposit loan. However, some lenders will restrict you to 95% of the value of the current house plus the cost of the renovations.
  • You’re buying a house: If you’re buying a home and have a building contract in place to commence renovations immediately then this is looked at more favourably by the banks. In this case, borrowing 100% of the house plus the building contract price is usually possible.

Can I build houses or townhouses with no deposit?

Small developments of up to two dwellings, a duplex or two townhouses with a 100% loan is possible but you have to be in a strong financial position to qualify for the home loan.

In some cases, it’s possible to build up to three houses or townhouses with a no deposit investment loan.

Can I borrow to pay for landscaping or other work?

It’s quite common to include the cost of other improvements such as a pool, a garage, a shed, a pergola, a spa, a water tanks and utility connections in the building loan.

Tip: you should obtain quotes for this work upfront or include it in your building contract price with your builder.

If you don’t provide evidence of the cost, your bank may not approve the extra money for you.

Can I borrow a little extra?

It’s a good idea to have a buffer or contingency in case of unexpected construction costs or a change of plans.

No deposit loans will only allow you to borrow 100% of the total cost of the land and construction contract.

You can only borrow over 100% of the cost if you have a guarantor that can offer their property as additional security.

We recommend that you budget a minimum of $5,000 in case of unforeseen costs.

How does the bank pay the builder?

The bank will pay the builder directly in a process known as construction drawdowns.

When the builder presents you with an invoice, all that you need to do is sign a form and fax it to the bank along with the invoice.

They’ll then deposit the money directly into the builder’s bank account.

In some cases, and almost always for the final drawdown, the bank will send a valuer to the property to complete a progress inspection.

A progress inspection may delay the payment to the builder for up to one week

To avoid this, we recommend that you put in your drawdown requests as soon as possible so that you don’t delay the payment to your builder!

What documents will I need?

In addition to the normal documents required for a no deposit home loan, you’ll also need:

  • Building contract / quote: If you have chosen a builder then you’ll need either a formal quote or the final building contract so that the bank can assess the loan. The building contract should include the drawdown schedule requested by the builder.
  • Builder’s licence / insurance details: Your builder must have the required licences and insurances for your state. Always check that your project is covered by Home Warranty Insurance (HWI) or the equivalent for your state.
  • Council approved plans: Drawings of the proposed building that have been approved by council will be required so that the bank’s valuer can assess the on-completion value of your property.
  • Quotes for other work: Please provide quotes for any landscaping, sheds, pools or other work that won’t be completed by the builder.

What if I’m an owner builder?

There’s no lender that can approve 100% loans for owner builders.

If you’re an owner builder, we recommend that you either use a licensed builder instead or ask a relative to guarantee your loan until the house is complete.

Even if you’re a licensed builder and you’re building your own home, most banks won’t approve more than 75% of the total cost of the land and construction!

How do I apply for a no deposit construction loan?

If you’d like to know which lenders offer the cheapest no deposit building loans, please complete our free assessment form or call us on 1300 889 743 and our specialist brokers will get back to you with the most suitable rates and fees.


    I have just settled on my new home, which was built on the vacant land that I bought from my uncle. I build the home on my own with some help from my professional friends. However, the expenses were more than I had calculated thus leaving me with almost no funds for the swimming pool. Now, how can I approach the bank for the construction of the pool, as I’ve no money at all left.

  • Hi Stark,

    You could possibly look at getting a cash out from your current home if you have sufficient equity on it for the construction of the pool.

    You could contact a mortgage broker to proceed with this.

  • CodyC

    Do I need to provide drawings and blueprints of the proposed buildings and such to the bank?

  • Hey CodyC,

    Yes, banks will require that you provide drawings of the proposed buildings so that the bank’s valuer can assess the on-completion value of your property. Additionally, these plans will need to be council-approved.

  • Holloway

    Can I get to borrow at 100% LVR for some renos on a house I’m buying?

  • Hello Holloway,

    If you’re buying a home and have a building contract in place to commence renovations immediately then this is looked on more favourably by the banks. In this case, borrowing 100% of the house plus the building contract price is usually possible.

  • roy

    I have a renos contract in place ready to action immediately after the house purchase. Can this be financed too?

  • Banks look at this more favourably so you may usually be able to borrow 100% of the house plus the building contract price.

  • Kel

    I’m also considering buying just a commercial property instead so is there any way to get a no deposit commercial property loan?

  • Hey Kel,

    By having your parents, a relative, a friend or even a business partner use their property as security, you may be able to borrow up to 100% of the commercial property value plus the costs of completing the purchase. Please check out the commercial property guarantor loan page if you would like to find out more:

  • Hazel Moore


    God bless you sir, I will not stop telling the world about your kindness in my life, I am a single mum with kids to look after. My name is Hazel Moore, and I am from North Carolina,USA. A couple of weeks ago my friend visited me and along our discussion, she told me about Mr Calvin Greg, that he can help me out of my financial situation, I never believed cause I have spent so much money on different loan lenders who did nothing other than running away with my money. I have been in a financial mess for the past 7 months now. She advised I give it a try so i mailed him and explained all about my financial situation to him. He therefore took me through the loan process and gave me a loan of $75,000.00 at a very low interest rate of 2%. Today i am a proud business owner and can now take good care of my kids. If you must contact any firm to get any amount of loan you need with a low interest rate of 2%, and better repayment schedule, please contact CALVIN GREG FIRM. Email:- {}..

  • StaceHarry Kalaitsidis

    Do I need building rules consent as well or only planning permit to apply for construction loan .

  • Yoga Shala

    I have just got the bank valuation back and they are saying the land and house won’t be worth the amount spent to build. I am so shocked as I researched a lot and I could not find anyone to build this house for the same price, in fact at least 50k more for a house the same size and land about the same size too. I have about 10% deposit after including the FHOG.. would it be worth a second try?

  • Hi Yoga
    The best approach is to get a valuation from another lender. Us or another broker can do this for you.
    The success rate of challenging a valuation is around 3%.

  • Shuvra Choudhury

    I have done settlement for my land with one bank almost month ago. Now i want to do construction. My question can i approach to another bank for construction or i have to go with same bank.
    Another question what is the minimum time period to go for refinance with another bank.

  • Enlightened

    You hinted some lenders will let you take the guarantors off the loan once youve gotten to 90% and prove you can make the repayments. Are there any you know of which wont make you take out the LMI when you do that? I am looking for a 600k loan and have a combined income of 200k with three dependents.

  • Hi Shuvra
    Sorry for the late reply, my apologies we missed your question.
    Yes your land and construction loan must be with the same banks.
    You can refinance immediately after the land loan settles if you want to however there should be a good reason e.g. the other lender valued your property low. Also you may pay LMI again if you have a small deposit.

  • Hi Enlightened
    You can only refinance from a guarantor loan to 90% with waived LMI if you meet the criteria here

  • Enlightened

    Thank you for the quick reply. I am a school principal and my wife a sonographer so unfortunately we dont meet the criteria.

  • You may qualify for 85% no LMI. However it may be easiest just to make extra payments and remove the guarantee as soon as you can.

  • Srinath Adusumalli


    I am planning to purchase a land of worth 180k which is due tittle mar ‘18 and then construct a home with a cost of 200k as a seperate loan from same bank.
    The market value of similar house is 450k

    I will pay 10% for land for settlement and how much deposit I need to pay for construction loan?
    Is it just 5% deposit to the builder and rest of them bank will pay to Builder?

  • Hi Srinath,
    It would depend on the bank’s policy. The maximum our banks will lend is 95% for the land and 95% for the construction loan. This includes LMI.
    So it is likely that the amount you are suggesting should be acceptable however I’d recommend that you do a full funds to complete calculation to make sure you have enough. It’s a complex calc and grants and the state you are in will affect this as well. A mortgage broker can do this for you.
    I’d recommend that you save as much as possible because there are always unforseen expenses with construction projects. Usually it’s best to buy a complete home instead. Also I expect you’ll find the cost and value end up being the same. That big a difference doesn’t look right to me. Typically only developers make that kind of profit on a construction project.

  • Srinath Adusumalli

    Thanks for your reply.

  • Belter

    Hi, I’m getting a swimming pool constructed in my backyard. My friend is helping me with this. I have a mortgage with Suncorp. Will they allow me to access equity to build the pool?

  • Hi Belter,
    If you have sufficient equity in your current property, then you may be able to extract equity from it for renovations and minor construction work like installing a pool. And, if it you aren’t borrowing more than 80% of the current value of your property, there are less chances you’ll get knocked for the equity release..
    What may stop you from getting approved is the fact that you and your friend aren’t licensed swimming pool builders.
    Please check with your bank firstly and speak to us if you need our services to refinance your home loan to another lender. You could also get this page for more info

  • Srinath Adusumalli

    As part of joint venture deal, if all the partners sell the new townhouses off the plan and get it into a contract with RE agent, is there no requirement to show serviceability of the overall project cost ?
    Or they would have to be serviceable atleast for the initial house ( which would be demolished to build townhouses) ?

  • Hi Srinath,
    It is likely that they would need to show serviceability for the initial house as there would be no off the plan sales at that time. However for the construction loan would not require serviceability if you have 100% – 150% debt cover from presales. Development loans are specialist loan types, you can find more info here

  • Srinath Adusumalli

    Thanks for confirming that. If we do 3 townhouses, can that be considered as residential at 90% LVR?
    And all the partners on the title have to show 100% serviceability for the initial house purchase ?

  • Hi Srinath
    No, for construction of 3 dwellings the max LVR is 80% and that would be with proving serviceability for the final loan amount not just the initial loan on the property. For a lower LVR you could use presales to prove that the loan would be repaid when the construction is complete.
    Yes all people on title would be on the loan and would need to show their income evidence.

  • Deniz

    Hi, i am wondering how i can buy a land in melbourne with no deposit?

  • Srinath Adusumalli

    In an event where all the units would have presales, is it possible to show serviceability only for the initial house and not for the construction?
    Also even with presales for 3 Units which would cover 100% debt, is it possible to get 90% LVR?

  • Hi Deniz,
    You’d need a guarantor loan. This is the best solution for most people.

  • Deniz

    Practically, what is the main role of the guarantor? What does he guarantee?

  • They provide their property as additional security for your loan. There’s a lot of information on the link I just posted so please read this and then have a talk to your parents if they own a property and may be willing to help.

  • Deniz

    Awesome, thanks for your help!

  • Webster

    I have purchased land in Liverpool out of my inheritance money and I’m wondering if I need a deposit for the construction loan?

  • Hi Webster,
    If you have purchased the land and there is no mortgage on it, then you could get a no deposit construction loan. The lender will add the value of the land and construction. Most of the lenders lend 95% of the total land and construction value. We’re experts in construction loans with no deposit. Call us on 1300 889 743 to speak with one of our specialist mortgage brokers.

  • Karen

    I own 2 x blocks of land worth $450,000 each and I want to borrow to build a home on one. The cost is $535,000. Will I need a deposit as well or cause I own the land outright it’s enough.

  • Hi Karen,
    If you don’t have a loan on the land already then you will be fine without a deposit. I’ll email you and cc one of our mortgage brokers who specialises in construction loans.

  • Rachel

    I’m wanting to build a granny flat on my parents land. Is it possible for me to get a construction loan in my name and build on their land?

  • Hi Rachel
    The loan would need to be in all three names. Or you’d need to be on title for their property. Only some lenders will allow the loan to be in all three names and to have the title just in their names.
    So in other words it can be done but not in all instances and only by some lenders.

  • Rachel

    Thanks for your quick, and informative response. Is this kind of loan something you can help us with?

  • Yes it is. We’d need to look at the entire situation to confirm that this will work. I’ll email you and cc a mortgage broker who specialises in this area of finance.

  • Zepelin

    I am planning to build a house. I want to know if I use all my savings to purchase the land & need a loan for building, will I be able to borrow 100%.

  • Hi Zepelin,
    Usually, when you buy the land, the 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. So, in overall, the loan amount for the purchase of land and construction shouldn’t be more than 95% of the total cost. If you want to borrow 100%, then you can opt for a guarantor loan.

  • Hannah Rose Dolheguy

    My partner and I will have around 10% deposit for a house and land package and we are first home buyers so will receive $20,000 FHOG, my partner works full time and I work part time both in stable employment. Would we need to save a 20% deposit to get a home loan? We are looking at purchasing a property worth around $350,000

  • Matt Pike

    I’m interested in buying land and building but don’t have $ until my current house is sold.
    Is there a way i can at least get a land deposit to put a hold on land until my current house is sold and then borrow the rest to purchase the land and build a house.
    It seems like a chicken and egg situation right now.