No Deposit Home Loan: Routes, Costs and Requirements

A no deposit home loan can fund a purchase without a saved cash deposit when an accepted guarantee or existing property equity supports the borrowing. Some lender structures can fund the whole purchase price and costs, but you still need approval for the debt and a way to meet payments due before settlement.

Low-deposit schemes still require a contribution from a first-home buyer. Without savings or usable equity, a buyer must identify another accepted funding source. Work out how the price and costs will be paid and what security the lender will accept.

What No Deposit Means

No deposit means the buyer contributes none of the purchase price from their own cash, but it doesn’t automatically mean they can buy with no money available. A loan that covers 100% of the price can still leave legal fees or stamp duty unpaid.

When a client asks about a mortgage with no deposit, assess each part of the proposal.

• Identify the shortfall in saved money and any available funds such as a gift.
• Establish whether the client can access those funds before the contract deposit and settlement payments fall due.
• Calculate whether accepted security supports the proposed borrowing.
• Assess whether income covers the full debt after living expenses and existing commitments.

A guarantee supplies security. It doesn’t give the buyer spending money or reduce the repayments on the loan.

Genuine savings is a separate assessment of the history and source of money a lender accepts. Passing a no genuine savings assessment doesn’t fund a shortfall in the purchase budget. Keep that evidence question separate from the cash and security calculation.

The contract deposit is part of the purchase price paid earlier under the sale contract, so count it once. Its payment date can create a cash need before the home loan becomes available. Moneysmart’s buying guide explains that the contract sets its amount and timing on a private sale.

Compare the Available Funding Routes

The available routes depend on accepted extra security or an identified source of funds, alongside the buyer’s ability to repay the debt. Compare the structure before looking for a product labelled zero deposit.

Route	What funds the purchase	Security or cash dependency	Applicant and approval dependency
Family guarantee	A larger home loan supported by the guarantee	An accepted guarantor and enough suitable security. Early costs still need a funding source	The borrower must qualify for the full debt. The lender must accept the guarantor and guarantee terms
Existing property equity	Additional borrowing against property already owned	Usable equity after existing debt and the lender’s limits	Income must support the additional debt and the new purchase loan
Gifted contribution	Cash supplied by someone else	An actual gift available when needed	The lender must accept the funds and evidence. The transaction still has a cash deposit
Separate deposit loan	Borrowed cash contributes to the price	A second loan with its own repayment and cost obligations	The home lender must accept borrowed deposit funds and assess both debts

A Family Guarantee Can Support Full-Price Borrowing

As at October 2026, Westpac’s Family Security Guarantee allows borrowing up to 100% of the purchase price plus costs, subject to eligibility. An immediate family member provides accepted property equity or cash security. A single guarantee can be no more than 50% of the guarantor’s security.

For an investment purchase, Westpac requires the borrower to own no other property when applying. Owner-builder construction is excluded. Those are Westpac conditions, not rules for every family guarantee.

A willing relative alone doesn’t establish approval. Record the guarantee amount and existing debt against the proposed security. The borrower still needs sufficient income to repay the whole loan.

Moneysmart’s guarantor guidance explains that the guarantor can lose their secured property if the borrower defaults and the guarantor can’t pay. A guarantee can also reduce the guarantor’s borrowing capacity. Ask for the agreement early and obtain independent legal and financial advice before signing.

Document how the guarantee can end. Repaying part of the loan or obtaining a higher valuation doesn’t release it automatically. The lender must approve the release under the agreement.

Commonwealth Bank Requires a Defined Structure

As at October 2026, Commonwealth Bank’s Guarantor Support uses another person’s property as additional security. It can support borrowing the buyer couldn’t obtain alone and can avoid lenders mortgage insurance (LMI) or the bank’s Low Deposit Premium.

Commonwealth Bank requires legal advice and a statutory declaration before entering its Family Security Support, Property Share or Spousal Security Support arrangements. Its public information makes lending subject to credit approval. Guarantor Support therefore needs an assessment of the proposed guarantee and any remaining buyer contribution.

For a Commonwealth Bank no-deposit enquiry, give the bank the purchase price and total costs. Identify the borrower contribution, guarantee security and requested loan amount separately. A potential guarantee route is conditional acceptance of a structure, not a promise of a zero-cash loan.

Commonwealth Bank’s equity guidance, as at October 2026, also allows equity to support a next-home or investment deposit. Additional borrowing depends on income, expenses and existing debt. Equity is the property’s value less its mortgage, but only the amount approved for release becomes usable funds.

Buying Without a Guarantor

A buyer can avoid a guarantor when accepted equity or another contribution funds the gap. Using their own property equity creates extra debt secured against that property. A gift means the buyer didn’t save the deposit personally, while the purchase still has a cash contribution.

A personal loan for a home deposit adds a second repayment obligation. Moneysmart’s personal-loan guide explains the separate costs and repayment terms of that debt. Disclose the borrowing before the home-loan assessment, because lender acceptance of borrowed funds and the combined repayments must both work.

For construction, map the land payment and builder’s deposit before the progress payments. Include the construction contract, expected completed value and funds for work outside the contract. Acceptance of a guarantee on an established home doesn’t establish acceptance of the proposed build.

Account for Costs and Borrowing Limits

The complete funding requirement is the purchase price plus transaction costs, less confirmed cash contributions and approved loan funds. A guarantee helps secure debt, while the loan disbursement or buyer’s cash pays the bills.

Build the estimate from the contract and actual quotes. Include every applicable item below.

• Transfer duty, often called stamp duty, after any confirmed concession.
• Conveyancing, legal work and searches.
• Transfer and mortgage registration fees.
• Building and pest inspections.
• Lender fees, valuation charges and any quoted LMI or other premium.
• Settlement adjustments for rates or other prepaid charges.
• Insurance and moving costs that must be paid separately.

Record whether each cost is paid in cash or included in the approved loan. If a premium is added to the loan, it increases debt and must fit the lender’s borrowing limits. LMI protects the lender against a covered loss, so paying it doesn’t guarantee acceptance of a no-deposit application.

A Full-Price Loan Can Still Leave a Cash Shortfall

In this hypothetical example, an established home costs $600,000. Assume $12,000 in total transaction costs, including applicable taxes, fees and adjustments. This is an illustrative budget allowance, not a quoted state duty calculation or lender offer.

Funding item	Loan covers price only	Loan covers price and costs
Purchase price	$600,000	$600,000
Assumed transaction costs	$12,000	$12,000
Total purchase funding needed	$612,000	$612,000
Requested loan	$600,000	$612,000
Cash still needed for the purchase	$12,000	$0

The second structure requires separate approval for the extra $12,000 and enough accepted security. It also needs a workable source for costs due before loan funds are released. Neither column includes an emergency reserve or ongoing ownership costs.

The lender’s valuation can change the amount available. Loan-to-value ratio (LVR) compares the assessed loan with the security value used by the lender. A low valuation or less usable equity in the guarantor’s property can increase the required contribution or prevent the proposed structure.

Borrowing 100% of the purchase price doesn’t necessarily mean the lender assesses a 100% LVR when it accepts additional security. Ask for the lender’s calculation across the proposed security arrangement. A second property still has existing debt and its own lending limits.

Can you add stamp duty to your mortgage? You can fund it through borrowing when the lender approves enough debt and security for that purpose. Otherwise, it remains a cash cost payable by its due date.

In Queensland, New South Wales and Victoria, including Melbourne, use the applicable state rules for grants and duty concessions. A location doesn’t create a universal no-deposit lending route. For example, Revenue NSW says eligible first-home buyers can receive duty relief, while duty otherwise must be paid before settlement.

Separate Low Deposit From No Deposit

Low-deposit lending still needs a borrower contribution, even when a scheme removes LMI. A grant reduces the amount to find only when the buyer qualifies and its payment is available for the relevant transaction.

As at October 2026, the Australian Government 5% Deposit Scheme requires at least 5% for eligible first-home buyers. Eligible single parents or legal guardians can start from 2%. The government guarantees part of the loan, with no LMI, but the borrower remains responsible for costs and repayments.

The Australian Government Help to Buy Scheme, as at October 2026, also requires a minimum 2% deposit. It is shared equity, so the government contributes to the price and shares in the home’s gains or losses. Eligibility and participating-lender approval still apply.

For ordinary lending, the required contribution follows the named lender’s accepted LVR and insurance settings. Commonwealth Bank’s low-deposit options, as at October 2026, include professional LMI waivers with deposits as low as 10%, subject to eligibility. The waiver removes a premium, while the buyer still needs the deposit and remaining costs.

Apply the Difference to a First-Home Buyer

On a hypothetical $600,000 eligible purchase, a 5% contribution is $30,000 and a 2% contribution is $12,000. Assuming the same $12,000 transaction-cost allowance, those routes need $42,000 and $24,000 respectively before any accepted assistance. Neither is a no-deposit purchase.

If a grant supplies part of those funds, identify the accepted amount and when it is paid. A grant paid later can’t cover an earlier payment without another source. Duty relief reduces one cost, while legal fees and other transaction costs remain.

Use the correct comparison when discussing first-home buyer loans with no deposit. A family guarantee can support extra borrowing. A low-deposit scheme reduces the required contribution, and an LMI concession removes an insurance charge.

Prepare the Scenario and a Fallback

Prepare the no-deposit scenario by showing how every purchase payment is funded and how the borrower will repay the resulting debt. Give the lender a complete proposal before the client relies on it to commit to a purchase.

1. Record verified income and employment, with living expenses, dependants and every existing debt or credit limit.
2. Build the purchase budget, including costs and payment dates. Identify each available contribution and whether it is a gift or borrowing.
3. Describe the proposed security. Include ownership, valuations and current mortgage balances for each property.
4. Record the proposed guarantor relationship and guarantee amount. Arrange the advice and evidence required for that lender’s structure.
5. Obtain the lender’s assessment of the combined proposal. Record outstanding conditions and any remaining funds to complete before proceeding.

A broker can use Bulma’s Policy Advisor to compare guarantee and deposit rules across 52+ lenders. Bulma quotes the policy wording behind each answer, which helps the broker record the rule used for the proposed structure. The lender decides whether the actual application is approved.

When the Client Also Has Adverse Credit

For a bad-credit no-deposit request, record what happened, when it happened and whether the debt is paid, disputed or still outstanding. Add evidence of current repayment conduct and any active hardship arrangement. Assess those facts alongside the proposed contribution and security.

A guarantee doesn’t erase a default, and a lender’s willingness to consider adverse credit doesn’t establish full-price funding. Each issue must meet the same lender’s requirements in the same application. Combining two requested exceptions doesn’t make either acceptable.

Change the Proposal When It Doesn’t Fit

If cash is short, compare waiting to save with a lower purchase budget. A security shortfall requires a smaller loan or a different accepted funding structure. If repayments don’t fit, extra guarantee security doesn’t solve that income shortfall.

For a borrower with adverse credit, improving repayment conduct and resolving outstanding debt can change the future proposal. Record what must change and rerun the budget after it changes. Proceed only when the funding source, payment timing and lender conditions work together for the actual purchase.