Loan for House Deposit? Here's How to Secure It (2026)

In today's competitive Australian housing market, saving up for a house deposit can feel like an insurmountable challenge. With property prices on the rise, many aspiring homeowners find themselves asking, "Can you get a loan for a house deposit?" The good news is, there are options available that can help bridge the gap and bring you closer to owning your dream home.

Understanding Loans for House Deposits

Before diving into the specifics, it's important to understand the basics of borrowing for a house deposit. Typically, when purchasing a property, lenders expect you to contribute a portion of the purchase price upfront, known as a deposit. This amount usually ranges from 5% to 20% of the property's value. However, in some cases, you might be able to secure a loan to cover this deposit, helping you enter the property market sooner.

Current Market Rates and Loan Options

In 2026, the Australian housing market continues to experience significant growth. This has made it challenging for many buyers to save the necessary deposit. Let's explore some of the loan options available, along with current interest rates and requirements.

Each of these options comes with its own set of advantages and considerations. For instance, personal loans can be a quick way to secure funds, but they typically come with higher interest rates compared to mortgage loans. On the other hand, guarantor loans can offer competitive rates but require a family member to back your loan, which is not always feasible for everyone.

Steps to Secure a Loan for Your House Deposit

Securing a loan for your house deposit involves a series of steps. Here's a step-by-step guide to help you navigate the process:

1. Assess Your Financial Situation: Begin by evaluating your current financial standing. Consider your income, expenses, and any existing debts. This will help you determine how much you can afford to borrow.
2. Check Your Credit Score: A good credit score can improve your chances of securing a loan with favourable terms. Obtain a copy of your credit report and address any discrepancies.
3. Explore Loan Options: Research the various loans available for house deposits. Consider factors such as interest rates, repayment terms, and eligibility criteria. Esteb and Co's panel of 83+ lenders can provide a wide range of options to suit your needs.
4. Apply for Pre-Approval: Obtaining pre-approval for your loan can give you a clearer picture of how much you can borrow and demonstrate to sellers that you're a serious buyer.
5. Gather Documentation: Prepare all necessary documents, including proof of income, identification, and credit history, to streamline the application process.
6. Submit Your Application: Once you've chosen a lender and loan type, submit your application. Ensure all information is accurate to avoid delays.
7. Review the Loan Offer: Carefully review the terms of the loan offer. Pay attention to the interest rate, fees, and repayment schedule.
8. Accept the Loan: If you're satisfied with the loan terms, accept the offer and proceed with the purchase of your property.

Expert Tips and Considerations

While securing a loan for your house deposit can be a game-changer, it's important to consider a few key factors:

• Long-Term Financial Impact: Consider how the additional loan will impact your finances in the long run. Ensure you can comfortably manage repayments alongside your mortgage.
• Seek Professional Advice: Engaging with a mortgage broker, like Esteb and Co, can provide you with tailored advice and access to a broader range of lenders.
• Understand the Risks: Be aware of the risks involved with certain loan types, such as the potential of losing your guarantor's property if you default on a guarantor loan.
• Stay Informed: Keep abreast of any changes in the housing market or interest rates that may affect your loan.

Frequently Asked Questions

• Can I use a personal loan for a house deposit? Yes, but it's essential to weigh the higher interest rates and ensure you can manage the repayments.
• What is a guarantor loan? A guarantor loan involves a family member guaranteeing your mortgage, potentially allowing you to borrow more or secure better terms.
• Are there grants available for first-time buyers? Yes, the First Home Owner Grant is available for eligible buyers, with amounts and criteria varying by state.
• How does equity release work? If you own a property with significant equity, you can borrow against it to fund your deposit. This requires careful consideration of associated risks.
• What credit score do I need for a loan? Generally, a good credit score improves your chances of approval and favourable terms, but specific requirements vary by lender.
• Can I get a loan with bad credit? It may be possible, but expect higher interest rates and stricter conditions. Consulting a mortgage broker can help you explore available options.
• How much deposit do I typically need? Most lenders require a deposit of 5% to 20% of the property's value, though this can vary depending on the loan type and lender criteria.