No-⁠deposit home loans: can you buy without savings?

This guide covers Australia, with Queensland grant and duty examples. Our low-deposit home loan hub compares the wider options.

A no-deposit loan usually means you haven't saved the deposit yourself. Someone else provides the money, another property provides security, or you borrow the deposit too.

The ticks mark options we can assess. We still need to check the deposit source, buying costs and what you can repay.

❌ Rent payments don't supply a deposit. Rental history may help a lender assess genuine savings, but you still need an accepted deposit source or security arrangement.

Some professions also qualify for LMI waivers with smaller deposits. A waiver doesn't automatically allow 100% borrowing. Use our minimum deposit guide to work out a realistic cash target.

Eligible buyers can use the 5% Deposit Scheme to buy a home to live in with 5% down and no LMI. There are no income caps or annual place limits, but the lender still assesses your application. The government guarantee protects the lender; it doesn't supply your deposit.

Queensland's caps are $1 million in Brisbane, the Gold Coast and Sunshine Coast, and $700,000 elsewhere. Check the postcode, purchase price and valuation against the official property caps. Our 5% Deposit Scheme guide covers buyer eligibility and lender checks.

Eligible single parents or legal guardians with a dependent child may qualify for the scheme's 2% pathway. Help to Buy separately offers eligible buyers shared equity with a minimum 2% deposit. Income limits and ongoing obligations apply, and it can't be combined with the 5% scheme. Both options still require costs and loan approval.

Yes, if you and the property qualify for each. Queensland's $30,000 grant continues beyond 30 June 2026 for eligible new homes valued below $750,000, including land and variations. Ordinary established homes don't qualify. Our QLD grant guide explains eligibility and when the grant is paid.

Here's a hypothetical $720,000 Brisbane new-home purchase, with a matching valuation and the grant available at settlement:

Eligible Queensland new-home contracts from 1 May 2025 can qualify for no transfer duty without a home-value cap. Established homes have different thresholds. Our first home buyer stamp duty guide covers the conditions to check with your conveyancer.

Finding a suitable new home below $750,000 may be difficult. I wouldn't buy the wrong property just for the grant. Buying above its limit may still leave the other benefits available. Outside Queensland, check your state's grant rules.

A guarantor loan uses another property, often a parent's home, as extra security. Depending on the lender and security, it may cover the full price and some costs without LMI. You still need to qualify for the repayments yourself.

If you can't pay, the guarantor may have to repay the guaranteed debt. Their property and future borrowing can be affected. I'd check the guarantee amount and release conditions, and have the guarantor get independent legal advice without pressure to agree.

The lender must agree to remove the guarantee; it doesn't end automatically after a set number of years. If you have enough saved, compare a guarantor loan with the 5% scheme before involving your parents' property.

A genuine cash gift can supply the deposit. The lender may want its source documented and confirmation that it won't be repaid. If your parents expect the money back, disclose it as a loan. Don't describe repayable money as a gift.

How lenders treat gifts and rental history varies. Our genuine savings guide explains the evidence to check before applying.

Borrowing your deposit means taking on a separate loan alongside your mortgage. OwnHome is one example, and we are accredited with it. I'd consider it for someone with strong income but little saved, particularly above the government scheme cap. A $1.1 million Brisbane purchase, for example, exceeds the $1 million cap.

The trade-off is the extra repayment. I'd compare saving longer, a lower price, family help and an ordinary low-deposit loan before recommending it.

This separate hypothetical $1 million purchase assumes a matching valuation, no contribution towards the price and fees paid separately. It uses illustrative rates from the 29 September 2026 comparison, not current quotes or an approval.

The deposit loan is 20% of the debt but about 35% of the monthly bill. That's why I start with the combined repayment.

Our OwnHome review covers the full cost comparison, fees, eligible properties and loan features.

Some loans may fund certain costs, but get that confirmed. Use our buying costs guide and deposit calculator to build the budget. I wouldn't use the last dollar to settle and hope nothing breaks.

Borrowing more means larger repayments and more interest, all else equal. With little equity, a price fall could leave you owing more than the home is worth and make refinancing harder. Missed repayments can put your home, and a guarantor's property, at risk.

I'd test higher repayments, a period on one income and an unexpected repair. We also need to check your income, expenses, debts, credit history and the property valuation before you commit. Casual, contract or self-employed income isn't an automatic no; our income and employment guides explain the evidence.

LMI protects the lender, not you. Paying it on a normal low-deposit loan may still cost less overall than borrowing a separate deposit. Compare the total repayments and fees, not just whether the loan avoids LMI.

Our pre-approval guide explains what the bank has checked. The first home buyer guide takes you through the full purchase process.

If the numbers leave you stretched, I'd work on the deposit first. Our saving while renting guide covers practical steps. Eligible buyers can also check the First Home Super Saver Scheme, which uses eligible voluntary contributions, not general access to compulsory employer super.