House Loan – Own a Home Without Deposit Worries (2026)

Securing a home loan can be a daunting task, particularly when you're faced with the challenge of coming up with a deposit. If you're dreaming of home ownership but worried about the upfront costs, you'll be pleased to know that there are options available to get a house loan with no deposit. Let's explore how you can turn your homeownership dreams into a reality, even without a hefty savings account.

Understanding No Deposit Home Loans

At its core, a no deposit home loan, often referred to as a 100% home loan, allows you to borrow the entire purchase price of a property. This type of loan is ideal for those who have a steady income but haven't had the time or means to save for a deposit. However, it's important to understand the risks and requirements associated with this type of financing, as lenders will scrutinise your financial situation closely.

Current Rates, Requirements, and Options

As of 2026, interest rates for home loans in Australia typically range from 6.49% to 12%. Keep in mind that the rates for no deposit loans might be on the higher end due to the increased risk to lenders. You may also encounter additional requirements, such as:

• A guarantor, often a family member, to secure the loan.
• Strong credit history and steady employment.
• Proof of genuine savings, even if not used as a deposit.

With Esteb and Co's access to over 83 lenders, you have a broad range of options to explore, each with unique benefits and requirements.

Steps to Secure a No Deposit Home Loan

Securing a no deposit home loan involves several key steps:

1. Assess Your Financial Situation: Ensure your credit score is strong and your income stable.
2. Consider a Guarantor: A close family member might be willing to guarantee your loan, reducing the lender's risk.
3. Consult with a Broker: Speak to a mortgage broker at Esteb and Co to explore options across various lenders.
4. Prepare Documentation: Gather necessary documents, including proof of income, credit history, and any savings.
5. Submit Your Application: Work with your broker to submit applications to suitable lenders.

Expert Tips and Considerations

When considering a no deposit home loan, keep these expert tips in mind:

• Understand the Costs: Be aware of potential higher interest rates and fees, such as Lender's Mortgage Insurance (LMI).
• Plan for the Future: Ensure you can comfortably meet repayments even if interest rates rise.
• Think Long-term: Consider the property’s potential for value growth, which can help build equity over time.
• Stay Informed: Regularly review your loan options and refinancing possibilities as your financial situation improves.

Frequently Asked Questions

Here are answers to some common questions about no deposit home loans:

• Can I get a no deposit loan if I have a bad credit history? While it's more challenging, some lenders may still consider your application if you have a guarantor or a strong income.
• What are the risks of a no deposit home loan? Potential risks include higher interest rates and the need for a guarantor, which can strain family relationships if repayments are missed.
• Do all lenders offer no deposit home loans? No, not all lenders offer them. It's crucial to consult with a broker to identify which lenders on Esteb and Co's panel do.
• Can I avoid Lender's Mortgage Insurance (LMI) with a no deposit loan? You may avoid LMI if you have a guarantor, but this varies by lender.
• Is it better to save a deposit or go for a no deposit loan? Saving a deposit is generally preferable due to lower interest rates and reduced risk, but a no deposit loan can be a viable option if saving isn't feasible.
• How does having a guarantor work? A guarantor provides additional security to the lender by agreeing to cover repayments if you default, often using their property as collateral.
• Can first-time buyers access no deposit loans? Yes, first-time buyers can access these loans, particularly if they meet other criteria like having a guarantor.