Home Loan No Deposit? Discover Fast Approval (2026)

In today's fast-paced property market, saving up for a home deposit can feel like an uphill battle. If you're dreaming of owning your own home but struggling to save for that elusive deposit, you're not alone. The good news is that it's possible to secure a home loan with no deposit, and we're here to guide you through how you can make this a reality.

Understanding Home Loans with No Deposit

A home loan with no deposit, often referred to as a no deposit home loan or 100% home loan, allows you to borrow the entire purchase price of a property without needing to provide a deposit upfront. This can be a viable option for first-time home buyers who have a steady income but haven't been able to save enough for a deposit due to high living costs, or for those who wish to keep their savings for other investments or emergencies.

In Australia, the traditional route to home ownership typically involves saving at least 20% of the property's value as a deposit. However, with rising property prices, this can be a daunting task. Fortunately, there are alternative pathways available for prospective homeowners who find it challenging to save a large sum.

Current No Deposit Home Loan Options and Requirements

Let's explore the current options available for securing a home loan with no deposit, as well as the eligibility criteria you need to meet:

• Guarantor Loans: This is a popular option where a family member, usually parents, use their own property as security for your home loan. This decreases the risk to the lender and allows you to borrow the full amount. However, it's crucial to understand the responsibilities and risks involved for your guarantor.
• Lender's Mortgage Insurance (LMI): While not a direct way to avoid a deposit, paying for LMI can allow you to borrow more than 80% of the property's value. LMI protects the lender in case of default, making them more amenable to granting higher loan amounts.
• First Home Owner Grants and Schemes: Various state and federal grants or schemes may offer financial assistance to first-time buyers, reducing the initial outlay required.

Here's a quick comparison of these options:

Option	Benefits	Considerations
Guarantor Loan	No deposit needed, potential for better interest rates	Guarantor risks their property
LMI	Borrow more than 80% of property value	Additional cost of LMI
Grants/Schemes	Reduces initial financial burden	Eligibility criteria apply

Interest rates for no deposit loans can vary, typically ranging from 6.49% to 12%, depending on the lender, your financial situation, and the type of loan you choose. With Esteb and Co's access to over 83 lenders, we can help you find competitive rates tailored to your needs.

Steps to Get a Home Loan with No Deposit

Securing a no deposit home loan involves several key steps. Here's a step-by-step guide to help you navigate the process:

1. Assess Your Financial Health: Review your income, expenses, and credit score. A strong financial profile increases your chances of approval.
2. Explore Guarantor Options: Discuss with potential guarantors about their willingness and ability to support your loan application.
3. Research and Apply for Grants: Investigate available grants and schemes for first-time buyers in your area and apply if eligible.
4. Consult with a Mortgage Broker: Partner with a reputable mortgage broker like Esteb and Co to explore your options and identify the best lender for your situation.
5. Prepare Documentation: Gather all necessary documents, including proof of income, identification, and any information about your guarantor if applicable.
6. Submit Your Application: With your broker's assistance, submit your loan application to the chosen lender.
7. Review Loan Offers: Once offers are received, review them carefully to understand the terms, conditions, and interest rates.
8. Finalise the Loan: After selecting the best offer, work with your broker and lender to finalise the loan and prepare for settlement.

Expert Tips and Considerations

Here are some expert tips to consider when going for a no deposit home loan:

• Understand the Risks: Be aware of the financial implications for your guarantor and ensure they are fully informed before proceeding.
• Plan for LMI Costs: If opting for LMI, factor this into your budget as it can add a significant cost to your loan.
• Compare Lenders: With access to a wide range of lenders, a mortgage broker can help you compare and find the best deals.
• Consider Future Plans: Think about your long-term financial goals and how this loan fits into them.

Frequently Asked Questions

Here are some common questions about no deposit home loans:

• Can I get a home loan without a guarantor? It's possible, but having a guarantor can enhance your borrowing capacity and potentially secure better terms.
• What if my financial situation changes? It's crucial to inform your lender immediately and discuss potential solutions to manage your loan.
• Are there any tax implications for guarantors? Generally, there are no immediate tax implications, but it's wise for guarantors to seek financial advice.
• What happens if I default on the loan? The guarantor's property may be at risk if you cannot meet your repayment obligations.
• How can I improve my loan approval chances? Maintain a good credit score, manage your debts wisely, and consult a mortgage broker for tailored advice.
• Can I use a personal loan for the deposit? Some lenders may allow this, but it can affect your borrowing capacity and financial health.
• What are the typical fees involved? Besides LMI, there may be application fees, valuation fees, and settlement costs to consider.