Key takeaways
- A true no-deposit loan is rare — but buying with no deposit of your own is possible via a guarantor.
- A guarantor uses equity in their property as security to cover the deposit gap, often avoiding LMI.
- Low-deposit alternatives include the First Home Guarantee (5% deposit, no LMI).
- Borrowing more means higher repayments and less buffer — it suits stable, secure incomes.
“Can I buy with no deposit?” is one of the most-asked questions in home lending — and the honest answer is nuanced. The days of banks handing out 100% loans to anyone are gone. But if you have family able to help, or you qualify for the right scheme, buying with little or none of your own deposit is genuinely achievable. Here’s the realistic picture.
The guarantor route
The main way to buy without your own deposit is a guarantor (family pledge) loan. A family member — usually a parent — offers equity in their own property as extra security for part of your loan. That security covers the deposit gap, letting you borrow up to the full price (and sometimes costs), frequently with no LMI. The guarantee is limited to a portion of the loan and can be released later once you’ve built equity.
Illustrative example. A buyer with no deposit purchasing a $500,000 home might have a parent guarantee around 20% using equity in their own home — avoiding LMI and covering the deposit gap entirely. The buyer still borrows and repays the full amount; the parent’s guarantee is released once enough equity is built. Specifics depend on both parties’ circumstances.
Borrowing at or near 100% means higher repayments and little equity buffer if the market dips — so it works best when your income is stable and you can comfortably service the larger loan. A guarantor also takes on real, defined responsibility. This is an opportunity that deserves clear-eyed advice, not a hard sell.
Low-deposit alternatives
- First Home Guarantee — buy with a 5% deposit and no LMI if eligible.
- Gifted deposit — family provides the deposit funds directly, with a gift letter.
- 95% loans — some lenders lend up to 95% (plus LMI) for strong applicants.
Often the best answer combines these — a guarantee or gift with a scheme — tailored to your and your family’s situation.
Is it right for you?
A no- or low-deposit purchase can bring ownership forward by years, but only if the numbers genuinely work. It suits secure incomes and families who understand the commitment. The starting point is your borrowing power and an honest conversation about the risks and the plan to release the guarantee.
Broker Insight. We’ve helped clients who assumed they needed a 20% deposit buy far sooner using a family guarantee — then release that guarantee later as their equity grows.
No deposit? Let’s see what’s genuinely possible
We’ll map your options — guarantor, schemes, low-deposit loans — and tell you honestly what works for your situation and your family’s. Free, no obligation.
Book your free game plan callFrequently asked questions
Can I get a home loan with no deposit?
Rarely in the traditional sense — lenders almost always want some contribution or security. But you can effectively buy with little or no deposit of your own through a guarantor (family pledge) loan, where a family member uses equity in their property as security for part of your loan. Combined with schemes like the First Home Guarantee, this means a genuine deposit-free or very-low-deposit purchase is achievable for the right buyer.
How does a guarantor let me buy with no deposit?
With a guarantor loan, a family member (usually a parent) offers equity in their own property as additional security. This covers the deposit gap, so you can borrow up to the full purchase price (plus costs, in some cases) without your own deposit — and often without LMI. The guarantee is typically limited to a portion of the loan and can be released once you’ve built enough equity.
Are no-deposit loans a good idea?
They can be a powerful way to enter the market sooner, but they carry more risk: you’re borrowing more, so repayments are higher and you have less equity buffer if prices dip, and a guarantor takes on real responsibility. They suit buyers with stable income who can comfortably service the larger loan, and families who understand the commitment. It’s a genuine opportunity that deserves careful, honest advice.
This guide is general information only and does not take your personal circumstances into account. It is not financial or credit advice. Government schemes, lender policies, rates and tax rules change over time and eligibility criteria apply. Speak with us for advice tailored to your situation.