Zero Deposit Home Loans

06 Jun Zero Deposit Home Loans

In most cases, borrowers work hard with their brokers or lenders to negotiate a low-interest rate on their home loans to get the cost down. But there’s another way to save money upfront — the zero deposit home loan. In this article, we’ll give you tips and information about getting a home loan without a deposit at all!

Is there really a no deposit home loan?

A 100% home loan is possible, but lenders will require things such as a guarantor, good credit history, and a stable source of income (usually in the form of a full-time job), among other things. If these seem challenging to achieve for some, it’s important to note that these factors can also help you get approved for other loans in the future.

  • A steady source of income – This indicates to the lender that you will be reliable in making repayments because there is a little to a no chance for you to lose your source of income.
  • Credit Rating and Repayment history – Check your rating with a credit reporting agency. This will help the lender understand your spending habits and dependability as a borrower. If your score isn’t good, make sure to work on it before applying for a no deposit home loan.
  • Property type and location – The location of the property you choose is very important. Lenders want something that would be easy to resell if things don’t go as expected. They want homes in highly desirable locations, which are generally more expensive than other areas.

If you succeed in getting a no deposit home loan, you’ll still have pay stamp duty, legal fees, building inspection and, other upfront costs. Make sure you’re aware of all the costs and are able to cover them.

Ways to get a home loan with a low deposit

  1. Use a personal loan – Using a personal loan to pay for your home loan isn’t ideal for some, but the advantage is that you can use it to cover some of the deposit. This type of loan is available in fixed or variable interest rates and is usually unsecured. There’s also a chance that the lender will give you a higher interest rate than a borrower with savings.
  2. Open a special savings account – Lenders prefer borrowers with savings and opening a savings account and setting aside a portion of your salary on a regular basis indicates that you will be able to make regular loan repayments.
  3. Ask help from family – A parent can be a guarantor for first home buyers seeking to get a home loan.
  • Equity – Those who have a considerable amount of their home’s equity might be kind enough to gift you with a portion of it and use it to cover some of the deposit.
  • Guarantor – If you have a guarantor, you do not need to pay a deposit for a home loan because the guarantor’s property can be used as collateral. It’s important all parties know the risks involved because if the borrower cannot or will not make repayments, the guarantor is legally liable. A guarantor will generally use his or her property as security, and the Loan to Valuation Ratio (LVR) must be 80% or lower. To calculate your LVR, Home Value (100%) – Deposit(Min 20%) = Loan Value (Max 80%). (If you increase your deposit, your Loan Value will go down.)
  • Co-borrower – This person will sign the home loan contract with you which means he/she also owns part of the property. In the event you couldn’t continue paying, he/she will be the one responsible for the repayments.
  1. Sell assets – Some consider selling assets like vehicles and boats to have enough for the 5% of the deposit. This is the required amount when you want to apply for a low deposit home loan. Many have seen this approach as practical because letting go of some items can help you invest in something bigger like a home.
  1. Talk to a mortgage broker – It takes some work to get a home loan without paying a deposit. Mortgage brokers can help make this process easier by explaining everything each step of the way. They also help you get a suitable loan term using what you have at present and tell you about other things you might need.

Finance Ezi

If you’re looking to get a home loan, contact Finance Ezi. We have a team experienced agents that can help you find and compare loan offers from many lenders. Give them a call on 1300 425 425 or apply online.



Race over to the website to check out more of what drives us!

Thanks to all our Sponsors

Loan Repayment Calculator

Calculate your repayments

Get a better understanding of your repayments and find the best loan for your financial needs. Structure your calculation on your loan amount, interest rate, term, and balloon payments. Make adjustments to match your budget.

Free eBook Great Outback Adventure

Free eBook

Spring is in the air and what better time to pack up the caravan (or car or VW Bus) and hit the dusty trails? Our latest eBook ‘A great outback adventure’ explores everything you need to prepare for the Outback Caravan Adventure of your dreams.

Stay In Touch

Stay in Touch

Want to keep up-to-date with Finance EZI’s news, blog posts, and offers? Sign up to the Finance EZI eNewsletter to receive Exclusive Offers each month! You can also join our Facebook community for weekly tips, blogs, and finance news.

Partnering With Finance Ezi

Limit your losses by partnering with Finance Ezi.

Partnering with Finance Ezi is the direct bridge to your business’ overall financial success. With access to domestic and global funds, you can be confident that your business will receive the ultimate finance deals to optimise your customer relations and profits.

Why Choose Finance Ezi?

Fast Approval

Fast Approval

Kick start your financial freedom with fast approval rates. Speedy approvals and customised financial repayments are our specialty. Apply for a loan or a quick quote today.

Competitive Rates

Competitive Rates

We pride ourselves on our competitive rates on finance for cars, trucks, recreational vehicles, caravans, business loans, home loans, and more. At Finance EZI, we finance almost anything.

Trusted Lenders

Trusted Lenders

We’ve been helping people like you achieve their dreams for over 10 years. With an expansive network of business partners, we’re able to secure the best finance deals for your needs.

Talk To Real People

Talk to a Real Person

We know how complicated loan applications are, so we make it our business to support you throughout the entire process. Give us a call to speak to a member of our professional team today.

Featured Product Motorcycle Finance

What our clients say…

we make finance ezi. Call us toll-free on 1300 003 003 or apply online…