Can a 17 Year Old Get a Loan? Discover Your Options

For many young Australians, the thought of stepping onto the property ladder can be exciting yet daunting. If you're 17 and considering your options, you might wonder if it's even possible to secure a loan at such a young age. While the journey might be challenging, understanding the available opportunities and planning strategically can make your dream a reality.

Understanding Loans for 17-Year-Olds

At 17, you are on the brink of adulthood, but when it comes to financial transactions like loans, there are certain legal and practical hurdles to overcome. In Australia, you must be at least 18 years old to enter into a legally binding contract, which includes applying for a loan. However, there are still options available to you as you prepare for this milestone.

Though you can't directly apply for a loan until you’re 18, understanding the landscape and preparing in advance can set you on the right path once you hit adulthood. This preparation involves familiarising yourself with the requirements, saving for a deposit, and possibly seeking a co-signer or guarantor.

Current Loan Rates and Options for Young Australians

Even if you're not eligible to apply for a loan on your own just yet, it's crucial to be aware of current market conditions and loan options that could be available to you soon.

As of 2026, the Australian property market continues to be competitive, with interest rates fluctuating between 6.49% and 12% depending on the lender and the applicant's financial profile. When you're eligible, you'll need to demonstrate financial responsibility and stability to secure favourable terms.

Here are some typical requirements and options for young Australians looking at loans:

• Age Requirement: Must be 18 years or older to sign a loan contract.
• Savings: A significant deposit, often around 20% of the property's value, is typically required.
• Income: Regular income proof is necessary, whether it's from employment or other sources.
• Credit History: A good credit history, or a plan to build one, will enhance your eligibility.
• Co-signer/Guarantor: Having a co-signer can be beneficial if you're lacking in credit history or income stability.

With Esteb and Co's access to a panel of 83+ lenders, exploring a variety of loan products that suit your needs will be a streamlined process once you meet the eligibility requirements.

Steps to Prepare for Your First Loan

While you're waiting to turn 18, there are several proactive steps you can take to ensure you’re ready to apply for a loan:

1. Start Saving: Begin saving for a deposit as early as possible. The larger your deposit, the more likely you are to secure a loan with better terms.
2. Build a Solid Credit History: Consider getting a low-limit credit card with a parent as a co-signer to start building your credit history.
3. Understand Your Financial Position: Create a budget to understand your monthly expenses and savings potential. This will help you manage your finances better and show lenders you are financially responsible.
4. Research Potential Properties: Familiarise yourself with the property market to know what type of property you might be interested in and its typical cost.
5. Seek Financial Advice: Consulting with a financial advisor or a mortgage broker from Esteb and Co can provide you with tailored advice suited to your financial situation.

Expert Tips and Considerations

As you prepare for your journey into home ownership, consider these expert tips:

• Consider a Guarantor Loan: If you don’t have enough savings for a deposit, a guarantor loan might be an option once you’re 18. This involves having a family member or friend use their own property as security for your loan.
• Stay Informed: Keep abreast of changes in the property market and interest rates. This knowledge will empower you to make informed decisions.
• Don't Rush: It's easy to feel pressured to buy as soon as you turn 18, but waiting until you're financially stable can lead to better choices.
• Explore Different Lenders: With Esteb and Co’s extensive panel of lenders, you’ll have the flexibility to find a lender that best suits your needs. Different lenders offer different terms, so it pays to shop around.

Frequently Asked Questions

1. Can a 17-year-old apply for a home loan?
   No, in Australia, you must be at least 18 years old to apply for a home loan.
2. What can I do now to prepare for a loan?
   Start saving for a deposit, build your credit history, and understand your financial position.
3. What is a guarantor loan?
   A guarantor loan involves another person, usually a family member, using their property as security for your loan.
4. What is the typical interest rate for a first-time home buyer?
   Interest rates for first-time buyers in 2026 range from 6.49% to 12%, depending on the lender and your financial profile.
5. Is it better to wait until I'm more financially stable before applying for a loan?
   Yes, waiting until you have a solid financial foundation can lead to better loan terms and financial security.
6. How can Esteb and Co help me?
   With access to over 83 lenders, Esteb and Co can assist in finding the best loan options tailored to your needs.