House Loan Without Deposit? Here's How to Own in 2026
Worried about saving a deposit? Discover proven ways to secure a home loan without hefty savings. Unlock your path to homeownership today.
For many Australians, the dream of owning a home can seem daunting, especially if you're struggling to save for a deposit. With property prices seemingly on an endless upward trajectory, saving the standard 20% deposit can feel out of reach. If you're wondering whether it's possible to secure a home loan without a deposit, you're not alone. Let's explore viable options and strategies to make your homeownership dream a reality.
Understanding House Loans Without a Deposit
Traditionally, lenders require a deposit as a sign of financial stability and commitment from the borrower. This typically ranges from 5% to 20% of the property's value. However, not having a deposit doesn't automatically close the door on homeownership. Alternatives such as guarantor loans, government schemes, and lender-specific products can assist in obtaining a home loan without an upfront deposit.
Current Market Conditions and Loan Options
As of 2026, the Australian housing market remains competitive, with interest rates hovering between 6.49% and 12%, depending on the lender and product. Here are some common pathways to secure a loan without a deposit:
| Option | Interest Rate Range | Key Features |
|---|---|---|
| Guarantor Loans | 6.49% - 8% | Requires a family member to secure the loan |
| First Home Loan Deposit Scheme (FHLDS) | 7% - 9% | Government-backed; limited slots |
| Lender Mortgage Insurance (LMI) Waivers | 8% - 11% | High interest; may require additional security |
It's crucial to understand each option's requirements and implications. Guarantor loans, for instance, involve a family member using their property as security, which can be a significant risk for them. The FHLDS can allow you to purchase with as little as 5% deposit, but slots are limited and competitive. LMI waivers can allow 95% loans but often come with higher interest rates.
Steps to Secure a Home Loan Without a Deposit
Securing a home loan without a deposit can be complex but achievable with the right approach:
- Assess Your Financial Situation: Evaluate your income, expenses, and credit score to understand your borrowing capacity.
- Explore Guarantor Options: Discuss with family members who might be willing to act as a guarantor. Ensure they understand the risks involved.
- Research Government Schemes: Check eligibility for FHLDS or similar programs that can provide pathways to homeownership with minimal deposit.
- Consult with a Mortgage Broker: Engage with a broker like Esteb and Co, who can leverage their panel of 83+ lenders to find the best options for your situation.
- Prepare Documentation: Gather necessary documentation such as proof of income, credit history, and identification.
- Apply for Conditional Pre-Approval: Secure a conditional approval to know how much you can borrow and strengthen your negotiating position.
Tips and Considerations
Buying a home without a deposit requires careful planning and consideration. Here are some expert tips:
- Understand the Risks: Consider the long-term implications of using a guarantor or opting for a higher interest loan.
- Improve Your Credit Score: A higher credit score can increase your chances of approval and potentially lower your interest rate.
- Budget for Additional Costs: Factor in costs such as stamp duty, legal fees, and moving expenses.
- Stay Informed: Market conditions can change; staying informed about interest rates and housing policies can help you make better decisions.
- Seek Professional Advice: Use the expertise of mortgage brokers who can provide tailored advice and access to various loan products.
Frequently Asked Questions
- Can I buy a house without any savings? It is possible through options like guarantor loans or government schemes, but it's crucial to assess your financial stability and long-term implications.
- What is a guarantor loan? A guarantor loan involves a family member offering their property as security, which can help you secure a loan without a deposit.
- How do government schemes work? Programs like the First Home Loan Deposit Scheme allow eligible buyers to purchase with a smaller deposit, backed by government security.
- Are there risks with no-deposit loans? Yes, including higher interest rates and long-term financial commitments. It's essential to understand all terms and conditions.
- How can Esteb and Co help? Our extensive panel of 83+ lenders allows us to find tailored loan options that match your unique financial situation and goals.
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With direct experience helping Australians secure home loans, car finance, and business funding, Ricky founded Esteb and Co to bring transparency and technology to mortgage broking.