Buying a House with No Deposit in Australia – Is It Possible?

 Owning a home is a big dream for many Aussies, but saving up for a deposit can feel impossible. With property prices soaring, scraping together 20% of a home’s price is a massive hurdle. The good news? It’s still possible to buy a house with no deposit in Australia. Let’s break it all down in simple terms.

Can You Buy a House with No Deposit?

Yes, you can! While most banks want a deposit, there are ways to get around this. Some lenders offer no deposit mortgages in Australia, but you’ll need to meet certain conditions. The trick is to find the right option for your situation.



Ways to Get a Home Loan Without a Deposit

If you don’t have savings for a deposit, here are a few ways you might still qualify for a home loan:

1. Guarantor Loans

This is the most common way to get a mortgage without a deposit. A family member (usually a parent) uses their home as security for part of your loan. This helps you borrow up to 100% of the property’s value without paying Lenders Mortgage Insurance (LMI).

2. First Home Owner Grants & Schemes

The government offers different schemes to help first-time buyers, like:

  • First Home Owner Grant (FHOG): A one-off payment that can go towards your home purchase.

  • First Home Guarantee Scheme: Allows eligible buyers to purchase a home with as little as a 5% deposit while skipping LMI.

  • Regional Home Guarantee: For those buying in regional areas with a low deposit.

These programs can help reduce the deposit needed, making homeownership easier.

3. Lender-Supported Loans

Some lenders offer home loans without deposit if you have a strong income and good credit history. These usually require additional security, like another property or investments.

4. Personal Loans for Deposits

A few buyers take out a personal loan to cover their deposit. However, this means you’ll have two loans to repay, which can be risky. Lenders will check if you can handle both repayments before approving your mortgage.

5. Buying with a Partner

If you team up with a friend or family member, you might pool resources and get a loan together. This helps reduce the burden of saving a deposit on your own.


How to Get a Mortgage Without a Deposit?

If you’re ready to take the next step, follow these steps:

  1. Check Your Credit Score – A good score makes it easier to get approved.

  2. Explore Your Options – Research guarantor loans, grants, and lender policies.

  3. Talk to a Mortgage Broker – They can help find the best no-deposit home loan for you.

  4. Get Pre-Approval – This shows sellers you’re serious and ready to buy.

  5. Find the Right Property – Stick to properties within your budget to avoid financial stress.

Final Thoughts

While saving a deposit is tough, buying a house with no deposit in Australia is possible if you explore the right options. Whether it’s a guarantor loan, a government scheme, or a lender-supported deal, there’s hope for first-home buyers.

Want to know more? Chat with FHBA for a mortgage expert today and take the first step toward homeownership!

Location: Level 9/28 O'Connell St, Parramatta NSW 2150, Australia

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