Simple Hacks to Buy a House with No Deposit

Saving a 20% deposit can take years, sometimes a decade or more depending on where you're buying. Meanwhile, property prices keep climbing, and you're paying rent that could be going toward your own place. The reality is that many Australians are stuck in this cycle, watching the market move further out of reach while they wait to save enough cash.

The good news? You don't always need a full deposit to buy a house. Several pathways exist that let you step into the property market sooner, whether through family support, lender programs designed for specific buyers, or loans that work differently to the standard 20% deposit model. If you're wondering how to make property ownership happen without waiting another five years, these options are worth understanding. For many buyers, working with someone who knows how lenders assess borrowing capacity can open doors they didn't realise existed.

Let's dive into how you can make it happen.

Can You Actually Buy with No Deposit?

Yes, you can buy a house without a traditional cash deposit. While it's not the standard path and not every lender will offer it, specific programs and loan structures make it possible for buyers who meet certain criteria or have family willing to help.

Your Main Options for Buying Without a Deposit

Several pathways let you purchase property without the usual 20% deposit sitting in your bank account. Each works differently and suits different situations.

Family Guarantee Loans

A family guarantee loan lets a parent or close family member use the equity in their own home as security for your loan. Instead of you providing a 20% cash deposit, your guarantor's property acts as the security that covers the deposit portion. You can borrow up to 100% of the purchase price, sometimes even a bit more to cover stamp duty and other costs.

The guarantor doesn't hand over any money upfront. They're offering their property as additional security, which means if you default on the loan, the lender can pursue their property. Most guarantors limit their guarantee to a specific portion, often 20% of your loan amount, rather than guaranteeing the entire debt. Once you've built enough equity in your property, usually after a few years of payments and some property value growth, you can refinance and release the guarantor entirely.

This works well when you've got stable income and can comfortably afford repayments, but haven't had time to save a large deposit. The main consideration is the risk to your guarantor, so you need to be certain about your ability to make repayments.

First Home Guarantee Scheme

The government's First Home Guarantee Scheme lets eligible first home buyers purchase with as little as a 5% deposit without paying lenders mortgage insurance. The government essentially guarantees up to 15% of the property value, which removes the lender's usual requirement for you to either have 20% deposit or pay insurance to cover the difference.

You need to meet income caps, which vary depending on whether you're buying solo or with a partner, and the property you're purchasing must fall under specific price caps that differ by location. The scheme has a limited number of spots available each financial year, allocated to participating lenders. If you're a first home buyer trying to get into the market sooner, this can reduce the time spent saving by several years.

One thing to note is that with only 5% deposit, you're borrowing 95% of the property value, which means higher repayments and less equity buffer if property values dip.

Professional Loans and Specialty Programs

Some lenders offer loans specifically for professionals in certain occupations like medicine, law, accounting, or engineering. These loans can allow you to borrow up to 90% or even 100% of the property value without requiring lenders mortgage insurance, based on the assumption that these professions have stable, above-average incomes and lower default risk.

Eligibility usually requires proof that you work in one of the qualifying professions, sometimes with a minimum income threshold or a requirement that you're past any probation period. These programs aren't advertised widely, and not every lender offers them, which is where a broker who understands different lender policies becomes valuable.

Builder or Developer Deposit Assistance

Some builders and developers, particularly for new apartments or house and land packages, offer incentives that effectively cover part or all of your deposit. They might structure the deal so that the deposit is rolled into the purchase price, or offer a rebate that covers your upfront costs.

While this sounds appealing, the risk is that you may end up paying more for the property overall, as the builder factors the incentive cost into the sale price. You also need to be careful that the property is genuinely worth what you're paying, especially with off-the-plan purchases where the final valuation might come in lower than the contract price. Lenders will assess the property independently, and if their valuation falls short, you could still need to find additional funds to settle.

What Lenders Look for When You Have No Deposit

Lenders take on more risk when you're borrowing without a deposit, so they scrutinise other parts of your application more closely. You'll generally need:

• Strong, stable income: At least six to twelve months in your current role, with payslips and tax returns that show consistent earnings. Casual or contract workers face tougher assessment.

• Clean credit history: No defaults, missed payments, or court judgments. Even a phone bill sent to collections years ago can cause issues.

• Low existing debts: Credit card limits, personal loans, and buy now pay later accounts all reduce how much you can borrow. Lenders assume you're using the full limit of every credit facility, even if you're not.

• Genuine savings or financial discipline: Even if a family guarantee covers your deposit, some lenders want to see that you've been able to save something over a sustained period, which shows you can manage money.

If you're using a government scheme, you'll also need to meet the specific eligibility requirements around income, property price, and whether you've owned property before. Each lender interprets these rules slightly differently, which is why comparing options matters.

How to Move Forward with a No Deposit Purchase

Getting from interest to approval requires a clear sequence. Start by working out which pathway suits your situation, whether that's a family guarantee, a government scheme, or a professional loan.

Next, get your paperwork in order. That means recent payslips, tax returns if you're self-employed, bank statements covering at least three months, and details of any debts or credit accounts. If you're relying on a guarantor, they'll need to provide similar documents for their own financial position.

Then speak to a broker who can access multiple lenders and knows which ones are more flexible with no deposit scenarios. Not every lender participates in the First Home Guarantee Scheme, and the ones that do each have slightly different credit policies. A broker can also structure your application in a way that highlights your strengths and addresses any weak points before the lender sees it.

Once you have pre-approval, you can start looking at properties within your budget. Keep in mind that just because you're approved to borrow a certain amount doesn't mean you should borrow the maximum, especially when you're starting with little to no equity.

After you've found a property and made an offer, the lender will organise a valuation. If the valuation comes back lower than your purchase price, you may need to renegotiate or find additional funds. Finally, you'll move through to settlement, where your solicitor and the lender finalise everything and you get the keys.

Risks You Should Understand Before Committing

Buying with no deposit comes with trade-offs that are worth considering seriously before you sign anything.

• Higher repayments: Borrowing 95% or 100% of the property value means larger monthly repayments compared to someone who put down 20%. You need to be confident you can manage those repayments even if interest rates rise or your circumstances change.

• Limited equity buffer: If property values drop even slightly, you could end up owing more than your property is worth. This makes it harder to refinance or sell without bringing extra cash to settlement.

• Risk to guarantors: If a family member has guaranteed your loan and you can't make repayments, the lender can pursue their property. This can damage relationships and put their financial security at risk.

• Lenders mortgage insurance on some loans: Even though some programs waive this, others still require it when you're borrowing above 80%. LMI can add tens of thousands to your loan balance, and it protects the lender, not you.

Ready to Explore Your Options?

Buying without a deposit isn't about cutting corners or taking shortcuts. It's about using the right structure and the right lender for your situation, so you don't have to wait years while the market moves further away. At Home Loans Hub, we work with buyers across Sydney who are tired of being told they need to save more or wait longer. We'll show you what's actually available, which lenders will consider your situation, and how to structure your application so it has the strongest chance of approval.

Call one of our team or book an appointment at a time that works for you.

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