Yes, You Can Borrow up to 100%

With a No Deposit Home Loan

Some lenders in Australia offer house loans with no deposit for qualified borrowers.

In this type of loan, you can buy a home without the usual money needed for deposit or downpayment.

A ‘no deposit home loan’ is not that common in Australia. Not all lenders are willing to offer a loan with absolutely no requirement for you to pay for a deposit. In order to obtain a loan for 100 per cent of the property value, a family guarantor is usually required.

But some banks may offer a low deposit home loan up to 95% of the property if you have a reliable source of income and you meet other usual loan requirements such as a good credit rating.

With a low deposit home loan, you should pay a low down payment such as 5% of the purchase price and you may be required to get Lenders Mortgage Insurance (LMI).

Check our Low Deposit Loan Page

How to Qualify for a No Deposit Home Loan

Australian banks usually approve a no deposit home loan for individuals in two categories:

  1. People who are buying a house to live in
  2. Investors looking to build a rental property portfolio

First home buyers and other families purchasing an existing property make up the majority of people looking for no deposit or low deposit home loans in Australia.

But obtain full funding of the property value, they are required to have a guarantor.

Banks see first home buyers as lower risk borrowers and there are government schemes to help these buyers secure their first property.

A guarantor is also required for property investors applying for a no deposit loan.

Compared to first home buyers, they are often required to submit more documents and undergo a longer approval process.

Whether you are a first home buyer or a property investor, you should note that there are upfront fees that you must pay before you can secure a property.

Other costs involved are legal fees, building inspection fees, stamp duty, etc.

While it may seem that you are saving money by not paying a deposit, you may still spend more if you don’t review the interest rates, which are often high with this type of loan.

What are the Requirements for a No Deposit Home Loan?

Banks and non-bank lenders often follow stringent guidelines in approving a no deposit home loan in Australia. While each lender has its own set of criteria and requirements, you will be required to provide supporting documents for the following:

  • Good credit score
  • Proof of regular income
  • Location of the property you want to buy
  • Details of your guarantor (usually a family member)

Getting a no deposit home loan can be challenging, so it is best to work with a mortgage broker who has experience dealing with different types of loans in Australia

For assistance, you may call Shop Your Own Mortgage on 1 300 256 081 or send an email to