No Deposit Home Loans
Despite what you may have been told to the contrary, you can get a home loan without a deposit, if you know where to turn for the right advice.
Although many mortgage lenders will turn you away outright if you have no deposit, there could well be borrowing options available to you, and the expert brokers we work with can tell you what they are and suggest the best course of action.
Our guide to no deposit mortgages includes the following topics…
Read on or click a link to jump ahead:
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[/vc_column_text][vc_row_inner][vc_column_inner width=”1/3″][/vc_column_inner][vc_column_inner width=”1/3″][tek_button button_text=”Get Started” button_link=”url:https%3A%2F%2Fwww.onlinemoneyadvisor.com.au%2Fcontact-us%2F|||” button_position=”button-center”][/vc_column_inner][vc_column_inner width=”1/3″][/vc_column_inner][/vc_row_inner][vc_empty_space][vc_separator color=”purple”][vc_empty_space][/vc_column][/vc_row][vc_row full_width=”stretch_row”][vc_column offset=”vc_hidden-lg vc_hidden-md”][vc_separator color=”purple”][tek_calltoaction cta_icon_type=”no_icon” cta_title=”We’ll match you with your perfect mortgage broker” cta_subtitle=”Save time & money with an expert who specialises in cases like yours.” cta_text_color=”#000000″ cta_button_link=”url:https%3A%2F%2Fwww.onlinemoneyadvisor.com.au%2Fcontact-us%2F|||” cta_button_text=”Get Started”][vc_empty_space height=”50px”][vc_separator color=”purple”][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]Can I get a mortgage with no money down?
Yes. While most mortgage lenders prefer customers with a healthy deposit, there are options available for borrowers with no deposit at all. You might find that the best rates on the market are more difficult to come by, but you stand a much better chance of securing a favourable deal by applying through a broker.
It may be possible to get a home loan without a deposit if…
- You have a guarantor
- You’re able to borrow deposit funds
- You own a property already and hold equity in it
- You have over $150,000 in superannuation
Read on to find out more about each of these options or make an enquiry and we’ll introduce you to a mortgage broker who will be able to help.
How to get a zero deposit home loan
There could be a number of ways to get a home loan without a deposit.
The most viable options usually include…
Guarantor mortgages
Some mortgage lenders might offer you a no deposit home loan if your parents or another family member is willing to stand as a guarantor. They would need to secure the debt against a property they own, and hold sufficient equity in, and they would be liable to make any mortgage payments that you miss.
Most lenders who offer guarantor home loans allow eligible customers to borrow up to 105% of the property price and do not require them to have any genuine savings.
Borrowing deposit funds
Some home loan providers might be willing to lend to you if you’re borrowed funds to cover the deposit from a legitimate source, as long as you have your own money to cover stamp duty and other expenses and have clean credit.
Moreover, if you have only a small deposit (3-5%) some mortgage providers will let you borrow up to 95% of the property price plus a small personal loan as long as you have clean credit and less than $10,000 in existing debt.
Using equity from another property
If you already own a property and are looking to buy another one, you won’t necessarily need a deposit if you hold equity. If the amount of equity you have is enough to cover the lender’s deposit requirements, most lenders will be happy.
Using your superannuation
If you have more than $150,000 in your superannuation, you could set up a self-managed superannuation fund (SMSF) to buy a property, as long as it is for investment purposes. With this method, a deposit is not required as the funds in your superannuation cover the down payment.
Can I get a bad credit home loan with no deposit?
A guarantor mortgage might still be an option. Having bad credit usually means that fewer home loan options are available to you, and your choice of approachable lenders will be even fewer if you don’t have any deposit to put down. But a specialist bad credit lender might be willing to accept an application supported by a guarantor with enough equity in the security property.
Make an enquiry and we’ll introduce you to a mortgage broker who specialises in bad credit guarantor home loans for a free, no-obligation chat.
Can I get a no deposit home loan anywhere in Australia?
We work with brokers who can help you get a mortgage with no deposit across Australia and they have access to specialist lenders in…
- Sydney
- Victoria
- Adelaide
- Brisbane
- Queensland
- New South Wales
- Perth
- And many other locations
Make an enquiry and we’ll match you with a broker who can arrange these deals whatever location you’re looking to buy a property in.
Is there help available for first home buyers with no deposit?
Yes, but the schemes you could apply for as a first home buyer aren’t usually enough on their own. Firstly, there’s the First Home Owners Grant (FHOG) which offers a one-off payment of between $5,000 and $20,000 to put towards your first home depending on the state you live in and the price of the property you’re buying.
However, as most mortgage lenders require a 5-10% deposit, including the FHOG, these funds will usually need to be supplemented with other capital.
There’s also the First Home Loan Deposit Scheme but, again, this is aimed at customers who have a small deposit, rather than none at all. Through this government scheme, low and middle income earners can get a home loan with 5% deposit and save money on Lenders Mortgage Insurance and other fees such as stamp duty.
Each of these grants has specific criteria you must meet. To find out whether you qualify, consult the schemes’ websites or make an enquiry with us.
Speak to an expert
No deposit home loans can be tricky to arrange and most experts would recommend going down the guarantor route, if that’s viable. There may, however, be other options available and the brokers we work with can tell you what they are.
Make an enquiry with us and we’ll introduce you to a mortgage broker who specialises in no deposit home loans for a free, no-obligation chat.
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