No deposit home loans: what is actually possible in Australia

A no deposit home loan in Australia usually means someone else's security, not your own savings, fills the gap a deposit would normally cover. One version is a family guarantee, where a parent or other close relative offers equity in their own property as extra security for your loan. Westpac, for example, says its Family Security Guarantee can let a borrower borrow up to 100% of the purchase price, plus costs like stamp duty and legal fees. So a loan with no cash deposit is possible with some lenders, under their own policies.

No deposit does not mean no assessment and no costs. Lenders and credit providers work under the responsible lending obligations in Chapter 3 of the National Consumer Credit Protection Act 2009, which ASIC explains in Regulatory Guide 209. NAB points out that a guarantee does not reduce the home loan repayments. Conveyancing, inspections and lender costs also remain. The main alternatives covered below are a family guarantee and a government scheme that starts from a 2% or 5% deposit.

Six paths can get a first home buyer into a home with little or no saved deposit, and each one asks something different of the buyer and of their family. The table compares what each path needs, using the rules published by the Australian Government, Queensland Treasury and the lenders' own pages. It does not rank them, because the right fit depends on income, family circumstances and where the home is.

Help to Buy cannot be stacked with a state shared equity scheme such as Boost to Buy, because its rules exclude help from shared equity schemes, loans or guarantees provided by states or territories. Help to Buy buyers can still claim stamp duty concessions and grants. The general question of how to avoid lenders mortgage insurance has its own guide: lenders mortgage insurance explained.

A family guarantee loan works by adding a relative's property as extra security, so the lender holds enough security without a 20% cash deposit. NAB describes a guarantor as someone who does not provide cash payments but offers a portion of their home equity, under an agreement between the borrower, the guarantor and the bank that is a legal commitment. The usual sequence runs like this.

1. 1The buyer applies with whatever deposit they have, and a family member agrees to offer equity in their home as extra security. Westpac also lets a guarantor use cash, such as a term deposit, as the security.
2. 2The lender assesses both people. NAB says the lender looks at both the borrower and the guarantor, to make sure everyone understands the commitment and can meet the requirements. Who can be a guarantor is set by each lender: ANZ says guarantors are generally family members such as parents, and Westpac lists a parent, legal guardian, sibling or child aged over 18.
3. 3The guarantee is sized to the gap. In NAB's illustration, a buyer with a $30,000 (5%) deposit on a $600,000 home has a guarantor secure a further 15% ($90,000), reaching the equivalent of a 20% deposit and an effective loan to value ratio of 80%. NAB adds that the guaranteed amount depends on the lender's policies.
4. 4LMI may fall away. ANZ says borrowing more than 80% of the value it places on a property generally means paying lenders mortgage insurance, which is why a guarantee that brings the ratio below 80% can avoid it.
5. 5The guarantor gets independent advice and signs, then the loan settles like any other purchase.

A guarantor signs up to pay the guaranteed part of the loan if the borrower cannot, and their own home can be at risk. That is the core of every family guarantee, whichever lender offers it. Before a parent or relative agrees, these are the points the lenders' own pages ask them to weigh.

• Legal liability. NAB says that if the borrower defaults, the guarantor is legally responsible for the guaranteed portion of the loan.
• Their home as security. Westpac says a guarantor who used home equity and cannot pay when asked may have their house sold to cover it; NAB says the lender may repossess the guarantor's secured asset.
• Their own borrowing. NAB notes that being a guarantor may reduce the guarantor's borrowing capacity and their ability to apply for a new loan.
• A limited guarantee. NAB says some lenders allow a limited guarantee, such as 15% of the home's value instead of the full loan, and ANZ says its guarantee can be limited to just enough to bring the loan below 80% of the value.
• Caps on exposure. Westpac says a single guarantee can represent no more than 50% of the guarantor's security.
• Time and advice. ANZ gives guarantors at least three days to review the documents and strongly recommends independent legal and financial advice; Westpac requires proof of independent advice.

A guarantor is usually released once the loan no longer needs their security, which in practice means the loan has fallen to about 80% of the property's value or less. NAB says this is often the point at which the guarantor can be removed through a formal review or refinance. Each lender sets its own test, so the steps below describe the general pattern rather than one lender's rule.

1. 1Build equity. NAB explains that equity grows as repayments reduce the loan and can also grow if the property rises in value.
2. 2Check the loan to value ratio. Westpac says it considers a release request usually only if repayments on all the borrowers' loans are satisfactory and the ratio has fallen to a point where LMI is not required, or the borrower is prepared to pay an LMI premium.
3. 3Ask the lender for a review.
4. 4Or refinance. Moving the loan to a new structure or lender without the guarantee is the other route; the steps are in how to refinance a home loan, and FundUp's refinancing page covers its service.

Even with no deposit, a Queensland buyer still needs cash for conveyancing, inspections and lender costs, but transfer duty can be nil on many first homes. The example below uses an illustrative $650,000 purchase by a first home buyer who meets every eligibility rule. That price sits under the 5% Deposit Scheme's $700,000 cap for Queensland areas outside Brisbane and the listed regional centres of the Gold Coast and Sunshine Coast, which is the cap band that applies to an area such as Cairns on the published table. The postcode tool and the participating lender confirm the cap for a specific address.

The Queensland Revenue Office says the first home concession applies to homes valued under $800,000 and can save up to $24,525; its own example puts duty on a $730,000 first home at $6,555. The first home (new home) concession reduces duty to nil, with no value cap, for contracts dated 1 May 2025 or later. Both concessions require moving in within 1 year of settlement. The grant has its own guide: Queensland First Home Owner Grant. To run real numbers, use the stamp duty and borrowing power calculators.

Whether to buy now with a guarantee or a scheme, or keep saving, depends on answers only the buyer and their family can give. These questions are general information, not a recommendation, and a broker can help test the numbers behind each one.

• Can the repayments be met from your own income with room to spare? A guarantee changes the deposit, not the repayments.
• Is your family comfortable with the risk of a guarantee, after their own independent advice, and do they have a plan for when it ends?
• Does a scheme already get you in? The 5% Deposit Scheme has no income caps and unlimited places since 1 October 2025, so a guarantee may not be needed if 5% is within reach.
• Is the home under the price cap for its postcode, and does the lender's valuation also come in under the cap?
• Would Help to Buy suit? Its income limits are $103,000 for individuals or $165,000 for single parents and joint applicants (on the FY 2026 Notice of Assessment), and the Government shares in any gain or loss in value.
• Could super help? The First Home Super Saver scheme lets buyers use some eligible voluntary super contributions, up to $50,000 plus associated earnings. Release amounts and tax effects are a question for the ATO or a registered tax agent; the basics are in the First Home Super Saver scheme guide.

The practical first step is to find out what you can borrow on your own income, because that number decides whether a guarantee, a scheme or more saving is the realistic path. The FundUp borrowing power and stamp duty calculators give a first estimate. A mortgage broker can then compare how different lenders treat guarantees, the 5% Deposit Scheme and Help to Buy, and what a properly assessed pre-approval would need.

FundUp is a Cairns-based mortgage broker that works with clients Australia-wide, with a lender panel it says exceeds 40 lenders. Ned McLachlan, Director and Broker, handles home loans for first home buyers; see home loans or, for buyers around Cairns, the Cairns northern beaches home loan advisors page. FundUp states its service costs the borrower nothing because the lender pays the broker a commission, which must be disclosed. This guide is general information; talk to a broker about your own situation.