100% Home Loan – Secure Your Dream Home When Banks Say No

Dreaming of owning a home but worried because you don't have a deposit saved up? You're not alone. Many Australians find themselves in the same predicament, especially as property prices continue to rise in 2026. The good news is, a 100% home loan might just be your solution. But is it possible, and what do you need to know before diving in?

Understanding 100% Home Loans

A 100% home loan means borrowing the entire purchase price of a property without needing a deposit. This can be an attractive option for first-time buyers who are struggling to save but are eager to get into the property market. However, it's important to understand that these loans come with certain conditions and are not as readily available as they once were.

Current Market Rates and Requirements in 2026

In 2026, the Australian housing market remains competitive. Interest rates for home loans generally range from 6.49% to 12%, with the rate you receive often depending on your financial situation and credit history. Lenders offering 100% home loans might attach higher rates or additional fees to mitigate their risk.

Lender	Interest Rate	Features
Lender A	6.49%	Offset account, redraw facility
Lender B	7.25%	Flexible repayments, no annual fee
Lender C	8.90%	Low doc options, quick approval

To qualify for a 100% home loan, you'll typically need a guarantor. A guarantor is usually a family member who offers their property as security for your loan. This lowers the lender's risk, making it more likely to approve the loan. Other requirements include a strong credit score and stable income.

Steps to Secure a 100% Home Loan

Here's a step-by-step guide to help you through the process:

1. Assess Your Financial Situation: Calculate your income, expenses, and any existing debts. Ensure you have a stable job and a good credit score.
2. Find a Guarantor: Discuss with family members about the possibility of them acting as a guarantor. They need to understand the risks involved.
3. Research Lenders: Look into lenders who offer 100% home loans. Esteb and Co's access to 83+ lenders could be beneficial in finding a suitable option.
4. Get Pre-Approved: Apply for pre-approval to understand how much you can borrow and at what interest rate.
5. Choose a Property: Start house hunting within your budget. Consider future resale value and location.
6. Finalise Your Loan: Once your offer is accepted, work with your lender to finalise the loan details and prepare for settlement.

Tips and Considerations

• Consider Future Interest Rate Rises: Ensure you can afford repayments if rates increase.
• Plan for Additional Costs: Remember to budget for costs like stamp duty, legal fees, and moving expenses.
• Review Guarantor’s Position: Ensure your guarantor understands their financial obligations and risks.
• Explore Other Loan Options: Sometimes a 95% loan with Lenders Mortgage Insurance (LMI) might be more suitable.
• Consult a Mortgage Broker: A broker can provide personalised advice and help you navigate complex loan arrangements.

Frequently Asked Questions

1. Can I get a 100% home loan without a guarantor?

In most cases, a guarantor is required as it reduces the lender's risk. However, some high-income earners with excellent credit might find niche lenders willing to consider their application.

2. What are the risks for a guarantor?

If the borrower defaults, the guarantor is liable to cover the loan. This could put their assets, like their own home, at risk.

3. Are there alternatives to 100% home loans?

Yes, alternatives include saving a deposit, using a first home buyer grant, or securing a 95% loan with LMI.

4. How does having a guarantor affect my loan?

Having a guarantor can help you avoid paying LMI and might allow you to secure a more competitive interest rate.

5. What happens if property prices fall?

If property prices drop, you might end up owing more than your property is worth. This is known as negative equity and can complicate refinancing or selling your home.

The journey to securing a 100% home loan may seem daunting, but with the right preparation and guidance, it can be a viable path to homeownership. If you're considering this option, reaching out to a mortgage broker like Esteb and Co, with access to an extensive panel of lenders, can provide the support and expertise needed to navigate your options confidently.