100% No Deposit Home Loans in Australia

Are you thinking about buying a home but haven't saved a deposit? Most lenders will require you to have saved at least 5% of the purchase price over a period of at least 3 months. Even though most Australian banks and lenders won't offer no deposit home loans to clients with no savings, there is an alternative that will still allow you to borrow 100% of the purchase price. Due to the mortgage stress crisis, guarantor loans are now the only way to borrow 100% of the purchase price.

Guarantor loans

Although a guarantor home loan might allow you to borrow the entire purchase price of your new home, it's important to remember that you may still incur fees and charges on top of the price.

These charges include stamp duty and are added on top of the amount you paid for your home.

Although these options aren't as common, with a guarantor, it may still be possible to access home loan lenders willing to lend over 100% of the purchase price to help cover these extra costs too. By allowing you to borrow with no deposit, it gives you the option to get into the real estate market sooner rather than later.

Guarantor home loans have become very popular in recent times and there are a number of major lenders offering these. However, different lenders give their guarantor home loan products different names, which is a good reason why you speak with a mortgage broker to guide you through the process.

In order to qualify for a guarantor home loan you need a relative, who either owns a property outright or has significant equity in a property, and is happy to act as your guarantor. Most banks will only allow parental guarantees.

But you don't have to be a first home buyer to get a 100% home loan with a guarantor. Even if you've owned a home in the past you can still qualify to buy a home with no deposit.

There are big differences between the guarantor supported loans offered by different lenders. Speaking to your qualified Choice mortgage broker would help you navigate your options.

Don't have a guarantor? Click here to learn about top ways to budget and save for a deposit.

is one of our many Choice brokers that can help guide you through the mortgage maze.

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