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No Deposit Home Loan Options

Want to get into the property market sooner? Talk to our team about a no deposit home loan.

We make it such that your new home or investment property is well within your reach even without a deposit. Why do you need a deposit at all then? A deposit is still useful as it enables lenders to determine how financially responsible you are before you become involved in a large, long-term debt. If you can put aside the money for a deposit while paying your living expenses, the lender has more confidence in you that the mortgage repayments will be made on time. With years of experience under their belts, our home loan experts can share some insights with you:

Guarantor Home Loan
One option that is available for a no deposit home loan is providing a guarantee from your parents or a friend, secured on their property. In Australia, a guarantor home loan is the only way that an individual can borrow 100-110% of the purchase price of the property. You can apply to have the guarantee removed as soon as your property has increased in value or part of the loan has been paid off. Sounds confusing? Put your worries at ease as our home loan experts are here to guide you through the process.

Personal Loan
Another method to acquire a no deposit home loan is to obtain the deposit through a personal loan. To qualify, you need to possess little existing debt and a high income to afford both repayments, as you will be paying for both the mortgage and personal loan at the same time. You will also need a clear credit history and some savings to cover additional costs such as stamp duty.

Home Equity Loan
If you already are a property owner, we can assist you through using your existing equity on your property as a deposit. If this is sufficient, then you do not need any savings for a no deposit home loan. Find out more about home equity.

Low Deposit Home Loan

The usual safety threshold for banks to lend money is 80% of the property value.

Do not let this put you off purchasing that dream home you have been thinking about for ages. If this figure is too great, you can borrow more through a low deposit home loan, but you will incur a Lenders Mortgage Insurance fee. You only need to pay this fee once, but it can add up to thousands. Lenders Mortgage Insurance is a safety net for the bank so they may allow you to borrow more than 80% of the house value.

All in all, there are still criteria that need to be met to borrow up to 95% of the purchase price. When evaluating your eligibility for a low deposit home loan, you must have a good credit and employment history, genuine savings, good asset positions and controlled debt. We will assess your situation and find the best result for you.

Get in touch to learn more