No Deposit Home Loans In Melbourne

No deposit home loan options facilitate the process of moving into your desired home
without the requirement of an initial deposit, thus enabling you to accomplish this goal at an earlier time.

What Is A No Deposit Home Loan?

No deposit home loans, also known as zero deposit home loans, are a type of mortgage that doesn’t require a deposit. This means that you can borrow the full amount of the property purchase price without having to save for a deposit first. No deposit home loans are available to both first home buyers and investors in Melbourne.


Are No Deposit Home Loans Really "No Deposit"?

The long and short of it is that very few lenders truly offer no deposit home loans. Most will require a deposit in some form, whether that’s a genuine savings account, a guarantor or using equity in another property. At Break Free Home Loans, we work with a range of lenders who offer low deposit home loans and can help you to find the right loan for your situation.

A guarantor is generally the only way to get a true no deposit home loan. So if you’re looking for a no deposit home loans no guarantor, you may find it very difficult to find.


How To Get No Deposit Home Loans

There is a range of ways you can secure a no deposit home loan. These include using equity in your current home or investment property, having a guarantor, using your superannuation as your deposit and more.

If you’re not sure whether a no deposit home loan is right for you, discuss your needs with an experienced Break Free Home Loans broker today. We can help you evaluate your options and make sure you’re getting the best loan option for your situation.


First Home Buyer Grant

If you don’t have a deposit, you may be able to use the First Home Buyer Grant as your deposit. This can look like a no deposit home loan because you’re not using your own savings for a deposit.

The First Home Buyer Grant is only available for certain types of properties and in certain situations. Even more so if you’re looking to get a home loan with no deposit. If you’re interested in this option, make sure to speak with us firs


Personal Loan

You may be able to use a personal loan as a deposit for your home loan. This can act as a no deposit home loan in some cases. However, there are a few things to keep in mind before going down this route, such as the fact that you will need to have no bad credit, and that you may have to pay a higher interest rate as a result.



A guarantor can help you secure a no deposit home loan. This is someone who provides the security for your home loan. Most people choose a family member or close friend as a guarantor. Keep in mind that this is a big responsibility, and one that should not be taken on lightly.

With a guarantor home loan, a guarantor will put up their property as security so you can borrow with no deposit. You are able to borrow 105% of the purchase price this way, without the need for savings.


Use Superannuation

In some circumstances, you can use your superannuation as a deposit for your home loan. This is usually only possible if you have a self-managed super fund, and you will need to speak to your financial advisor to see if this is an option for you.


Use Equity

The difference between your property’s market value and the balance of your mortgage is known as home equity. You may be able to use this equity as the deposit for your next home loan. This option can be quite complex, so it’s best to speak to a mortgage broker or financial advisor to see if this is possible for you.


Things Taken Into Account When Assessing Your Application

When you apply for a no deposit home loan, the lender will assess your application based on a number of different factors. These usually have to do with your personal and financial circumstances, but can also have to do with the type of property you’re looking to purchase and other factors.

Location Restrictions

Depending on the lender, there may be some restrictions in place as to where you can purchase a property with this type of loan. For example, some lenders will only allow properties in certain areas or postcodes.

Credit And Repayment Histories

Lenders will take into account your credit score and your history of loan repayments to determine whether or not you’re eligible for this type of loan. It’s important to make sure that you have a good credit score and history before applying for any.


Standard Type Of Property

Each lender has their own criteria for the types of properties they will lend for. Some lenders will only lend for standard types of properties, while others may be more flexible.

Stable Employment And Income

Another thing many lenders will factor into your loan application is whether or not you have stable employment and income. Most lenders will want to see that you have been employed in the same job for at least six months, and/or that you have sufficient and regular income.


There are a wide range of other factors that may be considered when applying for a no deposit home loan. A mortgage broker can help you navigate the application process and give you the best chance of securing a loan.

If you’re looking for a no deposit home loan in Melbourne, contact your local mortgage broker today.


How Much Can You Borrow Buying A House With No Deposit

Most 0 deposit home loans allow you to borrow up to 95% of the purchase price of a property, which means you only need to save a 5% deposit. While they’re called no deposit home loans, they’re more comparable to a low deposit loan. The difference is that the deposit for the loan comes from other sources than your savings.

The amount you can borrow will vary from 80% to 97% of the property amount, and this will change from lender to lender.

What Is A No Deposit Home Loans?

Choosing the right lender is very important when securing a home loan. This is because each lender has different interest rates, products and eligibility criteria. It’s important to compare different home loans to make sure you find the best deal for your needs.

The right lender will have your best interests in mind alongside their own interests. They will help you through the entire loan process and ensure that you’re getting good terms.

To ensure you’re getting the best home loan, your best option is to work with a mortgage broker. With their experience, they will be able to find the right cheapest home loan for you from their panel of lenders.

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Rates And Fees For No Deposit Home Loans

When it comes to No Deposit Home Loans, the interest rates and fees are higher than with a standard loan. This is because the risks are higher for the lender. There may also be additional fees involved due to the risk and circumstances of the loan.
Interest-Free Financing in No Deposit Loans


Lenders charge a rate premium on loans with higher loan-to-value ratios (LVRs). The loan-to-value ratio is a measure of your risk as a borrower used by lenders. A higher LVR indicates that the property requires a larger deposit or previous equity. For example, if you were purchasing with a 10% deposit you’d be borrowing 90% of the property’s value. Therefore, your LVR would be 90%.

Most lenders for these types of loans will change the interest rate you’re paying depending on your LVR. So with a no deposit home loan you can usually expect higher interest rates.

Fee-Free No Deposit Loans


There are also the establishment and ongoing fees which can be charged on loans with a low or no deposit. These fees may include:

Upfront mortgage fees: This is a one-off fee charged by the lender for processing your loan application.

Ongoing fees: Some lenders will charge an ongoing fee as part of your home loan repayments.

Other fees you may encounter include stamp duty, legal fees and conveyancing costs.

Deposit-Free Loan Insurance

Lenders Mortgage Insurance

Lenders Mortgage Insurance, or LMI, is insurance that protects the lender in the event that you default on your loan.

It’s usually required by private lenders when you’re borrowing more than 80% of a property’s value. So if you’re taking out a no deposit home loan, it’s likely you’ll have to pay LMI.

The cost of LMI depends on the size of your loan and the deposit you have. The premium is paid as a one-off lump sum when you settle your loan.


Calculate your payments

Want to get an idea of what your loan repayments or interest rates will be with a no deposit home loan in Melbourne? Try our Home Loan Calculators. You’ll be able to get more information about how much you can afford to borrow, as well as other important factors such as your loan term and interest rate.

Got More Questions?

If you’re a first home buyer in Melbourne, No Deposit Home Loans could be the key to getting into the property market sooner. Talk to a mortgage broking expert from Break Free Home Private Loans in Melbourne today. We’ll connect you with the perfect home loans with no deposit for your situation.
Zero Deposit Lenders Insurance

Frequently Asked Questions

What Is A No Deposit Home Loan?

A no deposit home loan is a loan that allows you to buy a property without having to save for a deposit first. This type of loan is perfect for first home buyers who may not have the savings available for a traditional home loan deposit.

How To Choose A Lender For No Deposit Home Loans?

Choosing a lender for a no deposit home loan is an important decision. You want to make sure you choose a lender that is reputable and has a good track record. You also want to make sure you compare interest rates and fees before you make your decision.

An experienced mortgage broker will be able to compare many lenders to find you the best option.

Why Choose A No Deposit Home Loan?

There are many reasons to choose a no deposit home loan. Perhaps you are a first home buyer and don’t have the savings for a traditional home loan deposit. Or maybe you are looking to invest in property and want to minimise your upfront costs. Whatever your reason, a no deposit home loan can help you secure the funds you need to buy a home that would otherwise be out of your reach.

Will I Get Approved for a Home Loan With No Deposit?

Getting home loans without a deposit can be difficult. Getting approved for one will depend on the lender and your personal and financial circumstances. No deposit home loans are typically available to first home buyers, or those with limited savings. Some lenders will require you to have a guarantor in order to approve your loan, while others may ask for a larger deposit (up to 10%) if you’re considered a higher risk borrower.

For no deposit home loans VIC, Our mortgage brokers will be able to assess your situation and match you with a loan that meets your needs.

What Are The Disadvantages Of Home Loan No Deposit?

The main disadvantage of no deposit home loans is that they typically come with a higher interest rate than loans that require a deposit. This is because lenders see borrowers with no deposit as higher risk. When applying for home loans no deposit it’s important you have everything in order financially before applying, outside of your deposit.

Who Can Be The Guarantor For Zero Deposit Home Loans?

Most people ask their close friends or family to be the guarantor for their home loans. Others choose to use a family trust. The main thing is that the guarantor is someone you can trust, as being a guarantor is a huge responsibility.

Can I Buy a House With No Deposit?

Yes, you can buy a house with no deposit. No deposit home loans are available to first-home buyers as well as investors. However, while it is possible to get a loan without a deposit, it’s important to remember that you will likely end up paying more in interest and fees over the life of the loan.

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