Home Loan Without Down Payment? Discover Your Options Fast

Dreaming of owning a home but struggling to save for a down payment? You're not alone. In 2026, with property prices on the rise, many Australians find themselves wondering if it's possible to secure a home loan without a hefty initial deposit. The good news is, there are options available that can make your homeownership dreams a reality even without a down payment. Let's explore how.

Understanding Home Loans Without a Down Payment

Traditionally, lenders require a down payment as a security measure, showing your commitment and reducing their risk. Typically, this ranges from 5% to 20% of the property's value. However, the landscape is evolving, and certain circumstances allow borrowers to secure a home loan with little to no deposit. These options include guarantor loans, government schemes, and leveraging other assets.

Current Market Options and Requirements

In 2026, several pathways exist to help you purchase a home without a traditional down payment:

• Guarantor Loans: A close family member can act as a guarantor, using their property as additional security. This option can allow you to borrow up to 100% of the property's value.
• First Home Owner Grants: State government grants can assist first-time buyers, potentially reducing the need for a deposit.
• Lender's Mortgage Insurance (LMI): Some lenders may allow you to include the cost of LMI in your loan, reducing the immediate cash requirement.

Interest rates for these kinds of loans can vary, typically ranging between 6.49% and 12%, depending on your financial situation and the lender.

Steps to Secure a Home Loan Without a Down Payment

Here’s a step-by-step guide to navigating the process:

1. Assess Your Financial Situation: Understand your credit score, income stability, and existing debts.
2. Explore Available Options: Research government grants and consider if a guarantor loan suits your situation.
3. Consult a Mortgage Broker: At Esteb and Co, our panel includes over 83 lenders, providing a wide array of options to suit your needs.
4. Get Pre-Approval: Work with your broker to secure a pre-approval, giving you a clear budget and strengthening your negotiating power.
5. Find Your Property: Begin your property search, focusing on homes within your pre-approved budget.
6. Complete the Loan Application: Once you’ve found the right home, submit your full loan application with the help of your broker.

Expert Tips and Considerations

Before proceeding, consider these tips from our experts:

• Evaluate the Risks: Understand the risks of using a guarantor or taking on higher debt with LMI.
• Improve Your Financial Health: A higher credit score or reduced debt can improve your loan terms.
• Stay Informed: Market conditions change, so regularly review your options and consult with your broker.
• Budget for Additional Costs: Remember to budget for stamp duty, legal fees, and moving costs.

Frequently Asked Questions

1. Is it really possible to get a home loan with no deposit?
   Yes, through options like guarantor loans and government grants, it is possible.
2. What is a guarantor, and who can be one?
   A guarantor is usually a close family member who provides additional security for your loan.
3. What are the risks of a guarantor loan?
   If you default, the guarantor’s property may be at risk.
4. Can I use my superannuation as a deposit?
   Under certain conditions, you may be able to access your super for a first home deposit.
5. How does Lender's Mortgage Insurance work?
   LMI protects the lender if you default, and its cost can be added to your loan.
6. Are there income limits for government grants?
   Yes, grants often come with income caps, which vary by state.
7. How can Esteb and Co help me?
   With access to 83+ lenders, we can tailor a solution that best fits your financial situation.