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Buying a House with No Deposit – What It Means and When It Makes Sense

Buying a House with No Deposit – What It Means and When It Makes Sense

 

Dreaming of home ownership but worried about saving up that 20% deposit? You’re not alone. In fact, rising property prices across Australia have made the traditional deposit model harder than ever especially for first-time buyers. 

 

But what if we told you that you can buy a home with little or even no deposit?

Click here to talk to experts for no deposit mortgage works in Australia, when it makes sense, and what the real pros and cons are. 

 

What Is a No Deposit Mortgage?

A no deposit mortgage means you can secure a home loan without putting any money down upfront or by using an alternative form of security instead of cash.

While Australian lenders typically require a 5–20% deposit, there are a few legitimate ways to access a house loan without deposit, including:

  • Guarantor loans (a family member secures part of the loan)
  • Equity in another property
  • First Home Guarantee schemes
  • Lender promotions or niche lending products

This option can fast-track your entry into the market but it’s not for everyone.

How Can You Buy a House With No Deposit?

Here are the most common ways Australians buy property with little or zero deposit:

1. Family Guarantor Loan (Applicable For Both First and Second Home Buyers)

A parent or family member uses equity in their own property as security for your loan. You still own the home, but their guarantee reduces the lender’s risk.
Pros:

  • Skip the deposit
  • Avoid Lenders Mortgage Insurance (LMI)
  • Enter the market sooner

Caution: If you default, your guarantor’s home may be at risk.

2. First Home Guarantee (Formerly FHLDS) – ( Applicable For First Home Buyers )

Offered by the National Housing Finance and Investment Corporation (NHFIC), this scheme allows eligible first-home buyers to purchase a home with as little as 5% deposit, without paying LMI.

  • Only 35,000 spots available per financial year
  • Must meet income and property price thresholds
  • You still need to qualify for the loan

Learn more about First Home Buyer Grants →

3. Equity in Another Property – (Applicable For Second Home Buyers)

Already own property? You can leverage existing equity to cover the deposit for your next home.

This is a popular route for property investors, where your loan-to-value ratio (LVR) is key.

4. Lender Offers (Applicable For Both First and Second Home Buyers)

Some non-major lenders occasionally offer limited time no deposit home loan promotions, particularly for professionals or specific buyer categories.

Always consult or talk to our experts at CreditHub to explore verified options.

Is It Smart to Buy Without a Deposit?

Here’s when a no deposit mortgage might make sense:

  • You have a stable income and strong repayment ability
  • You’re eligible for a guarantor setup or government support
  • Property prices are rising, and waiting may increase your entry cost
  • You have a long-term plan to build equity quickly

But remember — skipping the deposit doesn’t mean skipping risk.

You’ll likely be borrowing 95–100% of the property value, which means:

  • Higher monthly repayments
  • More interest over time
  • Lower buffer in case property prices drop

Lender Considerations

Australian lenders will still assess:

  • Your credit history
  • Income & employment stability
  • Living expenses
  • Existing debts

At Credit Hub, we help assess your financial position and guide you through no deposit home loan options based on your goals.

Explore our Home Loan Solutions →

Tips Before Going Deposit-Free

  • Get pre-approved so you understand how much you can calculate borrow.
  • Work with a mortgage broker to find the right lender and product.
  • Understand LMI – unless a guarantor or government scheme applies, you may still need to pay this insurance.
  • Check eligibility for First Home Guarantee or other schemes.
  • Budget conservatively – a no-deposit loan gives less wiggle room.

Start Your Journey With Credit Hub

Buying your first home is exciting and going deposit-free can be a smart move if done right.

At Credit Hub, our experienced mortgage specialists help you navigate every option from government schemes to guarantor setups so you can enter the property market with confidence.

Recent Blogs

FAQ

1. What is a no deposit mortgage?

It’s a home loan that allows you to purchase property without needing to pay a deposit upfront, often using a guarantor or government support.

2. How can we buy a house with no deposit?

Through a guarantor loan, First Home Guarantee scheme, or by using equity in an existing property.

3. Is a house loan without deposit riskier?

Yes – higher LVR loans carry greater risk if property values fall, and often come with higher repayments.

4. Can I get a no deposit mortgage with bad credit?

It’s possible, but difficult. Most lenders require a strong credit score. Speak to a broker to assess your situation.

5. Will I still pay Lenders Mortgage Insurance?

You can avoid LMI through a guarantor or the First Home Guarantee. Otherwise, LMI may apply for loans over 80% LVR.

Disclaimer:

The information provided by Credit Hub and its affiliates is for general informational purposes only. While we strive for accuracy, readers should verify any details before making financial decisions. Credit Hub accepts no liability for errors, omissions, or actions taken based on this content.

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Mortgage Broker in Point Cook

Credit Hub Australia

  • Point Cook, Melbourne VIC
  • Mortgages (Banking & Financial Services)
  • Contract/Temp
  • Add expected salary to your profile for insights
About the role

Join our dynamic team at Credit Hub Australia as a Finance/Mortgage Broker in our conveniently located Point Cook office, close to the freeway and train station, with free parking available.

In this role, you will be responsible for providing personalised mortgage solutions to our valued clients and also managing your colleagues by co-ordinating the allocation of files and general day to day running of the broker team. With a focus on delivering exceptional customer service, you will guide clients through the entire mortgage process, from initial application to final approval.

“Position is for Mortgage broker on commission/contract basis.”

What you'll be doing
  • You will develop and expand network with our help.

  • Sales, cold calling, and networking come naturally to you. You thrive on engaging with prospective clients to understand their unique financial needs and goals.

  • You will act on leads and existing database as provided and generate sales and ongoing relations.

  • Actively participate in team meetings and contribute to the overall success of the business

What we're looking for

  • You are an existing broker with proven experience in Mortgage Broking or lending abilities, or in a similar financial services role looking to take your career further with a successful Mortgage house.

  • In-depth knowledge of the Australian mortgage market, including products, policies, and regulatory requirements.

  • Excellent communication and interpersonal skills, with the ability to build lasting relationships and earn client trust.

  • A strong commitment to delivering outstanding customer service and consistently exceeding client expectations.

  • Self-motivated and capable of working independently, while also thriving in a collaborative team environment.

  • Relevant industry qualifications, such as a Certificate IV in Finance and Mortgage Broking.

  • Ability to manage multiple tasks, stay organized, and work reliably without supervision.

  • A results-driven mindset with a strong sales focus, coupled with exceptional work ethic, time management, and multitasking abilities.

What we offer

At Credit Hub Australia, we are committed to providing our team with a supportive and rewarding work environment. Some of the key benefits of joining our team include:

  • Competitive remuneration and performance-based bonuses
  • Ongoing training and professional development opportunities
  • Flexible work arrangements and a positive work-life balance
About us

Credit Hub Australia is a leading provider of mortgage and finance solutions, with a strong presence in the Point Cook in the Western Suburb of Melbourne and surrounding areas. Our mission is to empower our clients to achieve their financial goals by delivering personalised, expert advice and exceptional customer service. We are a dynamic and growing team, driven by a passion for helping our clients and making a positive impact on our local community. We are with Finsure as an agrregator Group. 

If you’re ready to take the next step in your career as a Mortgage Broker, apply now to join our team at Credit Hub Australia.

Apply Now

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